June 25, 2014 / 10:16 AM / 3 years ago

UK gets over 2 bln stg demand for first Islamic bond

1 Min Read

LONDON, June 25 (Reuters) - Britain received orders of more than 2 billion pounds ($3.39 billion) during the bookbuilding process for the sale of its first Islamic bond, one of the bookrunners for the syndication said on Wednesday.

The five-year bond, known as a sukuk and intended to raise 200 million pounds, is being launched by the government as part of an effort to boost London's position as a centre for Islamic finance, and is the first to be issued by a Western national government.

Strong demand means the bond is being priced to offer a yield the same as the existing 5-year conventional British government bond, the bookrunner said, down from initial guidance of a yield up to 2 basis points higher.

$1 = 0.5892 British Pounds Reporting by David Milliken and Archana Narayanan; Editing by John Stonestreet

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