Bonds News

UK issues 500 million pounds in second sovereign Sukuk sale

LONDON, March 25 (Reuters) - Britain sold 500 million pounds ($686 million) of a sovereign Sukuk in its second foray in the Islamic finance market, the finance ministry said on Thursday.

Orders for the five-year security totalled more than 625 million pounds. It follows a 250 million-pound issue in 2014.

“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,” finance minister Rishi Sunak said in a statement.

“Strong investor demand for this Sukuk meant we achieved a good price for the taxpayer and will help us develop our relationships with Islamic economies around the world.”

The finance ministry said the profit rate - equivalent to a yield on a bond - for the Sukuk, which matures on 22 July 2026, was set at 0.333%, flat to the yield on the existing 1.5% gilt due July 2026. ($1 = 0.7293 pounds) (Reporting by Andy Bruce Editing by William Schomberg)