In connection with a potential second US dollar sukuk, the government said it has given several mandates.
HSBC and Standard Chartered Bank are joint global coordinators, joint lead managers and joint bookrunners, and CIMB and National Bank of Abu Dhabi PJSC are joint lead managers and joint bookrunners.
This month, the parties will arrange a series of fixed-income investor meetings in Asia, the Middle East and Europe.
Sukuk bonds are products that are structured differently than traditional Western bonds in order to comply with Sharia law, which prohibits the charging or payment of interest.
Late last year, the Hong Kong government raised $1bn for its inaugural sukuk, which was mainly distributed to private and retail banks. It attracted orders exceeding $4.7bn globally, recording oversubscription of 4.7 times, the government said.
The Hong Kong government is rated by S&P as AAA stable, by Moody’s as Aa1 stable and by Fitch’s as AA+ stable.
The Hong Kong Monetary Authority is acting as the Hong Kong government’s representative in the potential sukuk offering, officials said.
The total market for Islamic banking assets is estimated at $2trn.
