July 4 (IFR) - The Hong Kong government has mandated HSBC, Standard Chartered, CIMB and National Bank of Abu Dhabi to arrange its first Islamic bond issue, according to sources close to the deal.
The Hong Kong Monetary Authority is handling the deal, which is expected to arrive in September, the sources said.
The Islamic bond, or sukuk, is expected to raise between USD500m and USD1bn. It will likely have a tenor of 5 years and will be targeted at global institutional investors, Peter Pang, HKMA deputy chief executive said at a conference in April.
Hong Kong lawmakers passed a tax bill in late March to allow for sukuk sales. (Reporting By Nethelie Wong. Editing By Abby Schultz)