HK sells US$1b worth of Islamic bonds in second sukuk issue

Hong Kong sold US$1 billion (RM3.6 billion) of Islamic bonds in its second sukuk issue since the city’s debut in 2014. The five-year debt was priced at 1.894 per cent, with orders amounting to US$2 billion, according to a government statement. The city sold the same amount and tenor in September at 2.005 per cent, which drew bids for US$4.7 billion. Those notes last yielded 2 per cent. The city sold its latest bonds at a spread of 35 basis points above similar-maturity US Treasuries. That compares with 23 basis points for its debut offering. Standard & Poor’s assigned a preliminary AAA credit rating to the deb, the same as the government.