Allen & Overy has advised HSBC and Standard Chartered Bank as joint global coordinators and bookrunners along with several other bookrunners and co-managers on the USD1 billion sukuk offering by The Government of the Hong Kong Special Administrative Region of the People’s Republic of China, the first Islamic bond issuance by the HKSAR Government. The AAA-rated 5-year trust certificates were offered in a combined Rule 144A/Regulation S transaction to institutional investors internationally.
Commenting on the deal, Hong Kong based capital markets partner Yvonne Siew said: “This is a landmark transaction for the HKSAR Government which has received strong uptake from a balanced group of investors. We are thrilled to be a part of this significant issuance which is expected to pave the way for further sukuk issuances in Hong Kong.”
Singapore based US capital markets partner Ken Aboud said: “We have advised on a number of debut sovereign sukuk issues and are pleased to be involved on this transaction. The response to this deal structure signifies an appetite for Islamic financing options in Hong Kong. It is encouraging to see there is growing interest in developing Islamic finance in Asia.”
Ken led on the structuring of the sukuk along with Yvonne who advised on the Hong Kong and English law aspects of the transaction. They were assisted by associates Louise Hennessey, Jacqueline Chan and Monsicha Pongrujikorn. Ken and Hong Kong based partner Alexander Stathopoulos advised on US law aspects supported by associate Vivian Chow. Hong Kong partner Matthew Hebburn represented DB Trustees (Hong Kong) Limited as delegate in respect to the debut sukuk offering, supported by Dubai based senior associate, Chris Angus.
The sukuk offering was made under the HKSAR Government Bond Programme and issued by a special purpose vehicle Hong Kong Sukuk 2014 Limited, which was established for issuing the sukuk. Additional joint lead managers on the deal included CIMB and National Bank of Abu Dhabi PJSC and co-managers included Abu Dhabi Islamic Bank PJSC, Emirates NBD Capital, Hong Leong Islamic Bank Berhad, OCBC Bank Hong Kong Branch, QInvest and RHB Islamic Bank Berhad.
- Dentons Advises Bank of Sharjah on Establishment of Its EMTN Programme and US$500 Million Issuance
- Freshfields has Advised Tianjin Infrastructure on Its Debut International Issuance of US$500m Senior Bonds
- Milbank Acts on Successful Exchange Offer and New Issuance by the Government of Mongolia
- Milbank Advises on Highly Successful Equity Capital Raising by Top Indian Metals and Mining Producer Hindalco
- Shearman & Sterling Advises Underwriters on Chi-Med’s US Initial Public Offering