The Treasury has appointed external advisors to assist on Islamic financeA bank, HSBC, and a law firm, Linklaters LLP, have been hired to help development a government Sukuk, or Islamic bond.
HSBC will provide expert financial advice on structuring the Sukuk to ensure that it conforms with principles of Islamic finance, said the Treasury today. Linklaters will provide commercial legal advice in relation to the capital markets, tax, regulatory and real estate implications of issuing a government Sukuk for the first time.
The appointment is related to the David Cameron’s announcement at the World Islamic Economic Forum in October 2013 that the Treasury was working on the practicalities of issuing a bond-like Sukuk worth around £200 million. It followed a competition launched in December 2013. In line with the government’s Transparency Agenda the Treasury will publish the contracts.
