02 Feb Elemental works with HM Treasury on new £500m Sukuk
Last week, the UK government issued another £500 million of Sukuk, further cementing the UK’s reputation as a major centre for Islamic finance.
In 2014, the UK became the first country outside of the Islamic world to issue sovereign Sukuk, a type of sharia-compliant bond. As with the original, HM Treasury once again turned to Elemental to act as company secretary.
This new issue is twice the size of the original and demonstrates the UK government’s continued commitment to this type of investment. The issue follows the Al-Ijara structure which sees the asset underpinned by rental income from several government office properties, in lieu of interest.
The Chancellor, Rishi Sunak said, “We’ve set out ambitious plans to make the UK the most open and dynamic financial centre in the world. By launching our second sovereign Sukuk, we’re cementing the UK’s position as the leading global hub for Islamic finance outside of the Islamic world.”
Nick Lindsay, Elemental’s Director of Governance and Corporate Services, commented “We’ve supported HM Treasury for 7 years now are we’re proud to continue to play our role in securing investment in the UK from a diverse international audience”.
The issue was settled on 1 April 2021 and will be listed on the London Stock Exchange.