KUALA LUMPUR (April 5): CIMB Investment Bank and Malayan Banking Bhd (Maybank) are amongst several other banks listed as joint lead and co-lead managers in the recent launch of the £500 million UK sovereign sukuk.

The joint lead managers on the syndication were CIMB Investment Bank, Dubai Islamic Bank, Emirates NBD Capital, HSBC (structuring advisor), and Standard Chartered Bank.

Meanwhile, four banks were appointed as co-lead managers namely Bank ABC, Dukhan Bank, KFH Capital and Maybank.

According to a press notice dated March 25 by the UK Debt Management Office (DMO) issued on behalf of HM Treasury, £500 million of the UK’s second sovereign sukuk was successfully launched by syndication.

The profit rate on the sukuk has been set at 0.333%, representing a spread of 0bps relative to that of the reference gilt 1½% Treasury Gilt 2026, and with the price set at £100.00, it said.

The sukuk has a long five-year maturity till July 22, 2026 and, as with the UK’s first sukuk issue, will employ the commonly used Al-Ijara structure. The transaction as per the date of the press notice (March 25) settled on April 1, 2021, it said.

“Proceeds from the transaction are expected to amount to £500 million and will reduce the DMO’s Net Financing Requirement in 2021-22 accordingly,” it said.

The profit rate on the sukuk will be payable semi-annually, on Jan 22 and July 22, in each year, commencing July 22, 2021. The first sovereign sukuk was issued in 2014 and amounted to £200 million.