The bank acted as the joint lead manager and bookrunner for the GBP200 million sukuk offering by HM Treasury UK Sovereign Sukuk, a special purpose vehicle wholly-owned by Her Majesty’s Treasury.
The sukuk were priced on 25 June at 2.036%, representing a spread of 0 basis points (bps) relative to the yield on the 1¾% treasury gilt 2019, with the price set at GBP100. The deal was oversubscribed by more than ten times, attracting interest in excess of over GBP2 billion.
"The appointment not only recognises our expertise in Islamic finance but it is also a great testament to the stature of the investment banking franchise that we have built and our strong distribution capability in the region and beyond,” said Dato’ Sri Nazir Razak, Group Chief Executive, CIMB Group.
Chancellor of the Exchequer, George Osborne, said, “The issuance of Britain’s first sovereign sukuk delivers on the government’s commitment to become the western hub of Islamic finance and is part of our long term economic plan to make Britain the undisputed centre of the global financial system. We have seen very strong demand for the sukuk, resulting in a price that delivers good value for money for the taxpayer. I hope that the success of this government issuance will encourage further private sector issuances of sukuk in the UK.”
The deal attracted interest from a diverse group of domestic and international investors. The allocation was well-spread out globally, with 39% of the sukuk distributed to investors in the UK, the Middle East 37% and Asia 24%.
The deal was priced after a comprehensive roadshow across key global Islamic financial centres: Jeddah, Riyadh, Dubai, Abu Dhabi, Doha, Kuala Lumpur and London. The other syndicate banks for this transaction are Barwa Bank, HSBC, National Bank of Abu Dhabi and Standard Chartered Bank.
CIMB has been involved in a number of notable sukuk issuance transactions including multiple Government of Malaysia and Republic of Indonesia's trust certificates, Export-Import Bank of Malaysia's multicurrency sukuk programme, multiple tranches of Islamic Development Bank's trust certificates programmes since 2005, Sabana REIT – the world's first shari'ah-compliant industrial REIT’s trust certificates, and multiple Khazanah Nasional’s exchangeable sukuk.
The sukuk were priced on 25 June at 2.036%, representing a spread of 0 basis points (bps) relative to the yield on the 1¾% treasury gilt 2019, with the price set at GBP100. The deal was oversubscribed by more than ten times, attracting interest in excess of over GBP2 billion.
"The appointment not only recognises our expertise in Islamic finance but it is also a great testament to the stature of the investment banking franchise that we have built and our strong distribution capability in the region and beyond,” said Dato’ Sri Nazir Razak, Group Chief Executive, CIMB Group.
Chancellor of the Exchequer, George Osborne, said, “The issuance of Britain’s first sovereign sukuk delivers on the government’s commitment to become the western hub of Islamic finance and is part of our long term economic plan to make Britain the undisputed centre of the global financial system. We have seen very strong demand for the sukuk, resulting in a price that delivers good value for money for the taxpayer. I hope that the success of this government issuance will encourage further private sector issuances of sukuk in the UK.”
The deal attracted interest from a diverse group of domestic and international investors. The allocation was well-spread out globally, with 39% of the sukuk distributed to investors in the UK, the Middle East 37% and Asia 24%.
The deal was priced after a comprehensive roadshow across key global Islamic financial centres: Jeddah, Riyadh, Dubai, Abu Dhabi, Doha, Kuala Lumpur and London. The other syndicate banks for this transaction are Barwa Bank, HSBC, National Bank of Abu Dhabi and Standard Chartered Bank.
CIMB has been involved in a number of notable sukuk issuance transactions including multiple Government of Malaysia and Republic of Indonesia's trust certificates, Export-Import Bank of Malaysia's multicurrency sukuk programme, multiple tranches of Islamic Development Bank's trust certificates programmes since 2005, Sabana REIT – the world's first shari'ah-compliant industrial REIT’s trust certificates, and multiple Khazanah Nasional’s exchangeable sukuk.