• Why Jihad Watch?
  • About Robert Spencer and Staff Writers
  • FAQ
  • Books
  • Muhammad
  • Islam 101
  • Privacy

Jihad Watch

Exposing the role that Islamic jihad theology and ideology play in the modern global conflicts

Britain to issue first Islamic bonds by Western sovereign

Jun 14, 2014 1:18 pm By Robert Spencer

Bank of England“A sovereign sukuk is the centrepiece of Prime Minister David Cameron’s bid to position London as a leading hub for Islamic finance, as competition heats up with financial centres in the Middle East and Asia.” This is what is behind the Cameron government’s utterly supine response to Islamic supremacist aggression and intimidation in the school system and elsewhere: he has to create a hospitable environment for Sharia as part of his plan to make London a global capital of Islamic finance. And if the freedom of speech and equality of rights for women and non-Muslims have to go, so be it.

“Britain to issue first Islamic bonds by Western sovereign,” by Bernardo Vizcaino, Reuters, June 13, 2014

The British government has mandated banks to arrange a five-year 200 million pound sukuk – the world’s first Islamic bond to be issued by a Western sovereign.

The Islamic bond could be issued in the coming weeks, subject to market conditions, The Treasury said in a statement late on Thursday.

The roadshow will start on June 17 in Jeddah and Kuala Lumpur, then moving to Riyadh, Dubai, Doha, and Abu Dhabi, ending in London on June 20, lead banks said.

A sovereign sukuk is the centrepiece of Prime Minister David Cameron’s bid to position London as a leading hub for Islamic finance, as competition heats up with financial centres in the Middle East and Asia.

The bond would be issued before similar transactions planned by Luxembourg, Hong Kong and South Africa, all keen to diversify their funding sources and tap liquidity provided by increasingly wealthy Islamic investors.

In January, Britain appointed HSBC (HSBA.L: Quote, Profile, Research) to arrange the deal and it has now added four more banks to the syndicate: Qatar’s Barwa Bank, Malaysia’s CIMB (CIMB.KL: Quote, Profile, Research), National Bank of Abu Dhabi (NBAD.AD: Quote, Profile, Research) and Standard Chartered [STANB.UL].

The sukuk will use an ijara structure, a sharia-compliant sale and lease-back contract, allowing the rental income of three central government offices to underpin the transaction.

In an ijara sukuk, a party leases equipment, buildings or other facilities to a client for an agreed rental price – a popular format among both sovereign and corporate issuers.
Short-term liquidity needs

Britain has six full-fledged Islamic banks and over 20 institutions in the country that offer sharia-compliant financial services, which follow religious principles such as a ban on interest and gambling.

A sovereign sukuk could help Britain’s Islamic banks to help manage their short-term liquidity needs.

In March, The Bank of England said it was studying ways to increase the number of Sharia-compliant assets that Islamic banks can use in their liquidity buffers, a step towards reducing concentration risks in the sector.

Britain considered a sovereign sukuk six years ago, but that issuance never materialized as the Debt Management Office decided the structure was too expensive at the time.

Share this:

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)
  • Click to print (Opens in new window)
  • Click to email this to a friend (Opens in new window)
  • More
  • Click to share on Skype (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Telegram (Opens in new window)
  • Click to share on Tumblr (Opens in new window)
  • Click to share on Pocket (Opens in new window)
  • Click to share on Pinterest (Opens in new window)

Follow me on Facebook

Filed Under: dhimmitude, Sharia, Sharia finance, United Kingdom, Useful idiots Tagged With: featured


Learn more about RevenueStripe...

Comments

  1. Buraq says

    Jun 14, 2014 at 1:40 pm

    These bonds might work for a short-term deal, but any agreement for a fixed return in markets that rise and fall on the strength of a rumor or a rogue statistic is foolhardy, to say the least.

    Anyway, when the love affair between the Arab financiars and the infidel banking system comes to a bitter end, I’ll bet it’s the infidels who’ll get the ‘Allah-money’!

    Clowns!

  2. tpellow says

    Jun 14, 2014 at 6:33 pm

    The political contradictions of PM Cameron (and of U.K political class), which all campaign for Turkey’s entry into E.U. and consequent further Islamization of Europe, can also be seen in the following conflicting bits of opportunistic Cameron dangerous stupidity-

    1.)

    “Be more British Cameron tells UK Muslims: PM issues powerful new pledge to combat extremism.
    “He plans to use 800th anniversary of Magna Carta to reassert British values.
    “Prime Minister said it is time to stop being ‘squeamish about Britishness.’
    “He said refusing to accept British laws and the way of life is ‘not an option.’

    Read more: http://www.dailymail.co.uk/news/article-2658033/Be-British-Cameron-tells-UK-Muslims-PM-issues-powerful-new-pledge-combat-extremism.html#ixzz34ec7ntYu

    2.)
    “British fanatics heading to Iraq to join ISIS militants in their HUNDREDS amid fears ‘they could bring terror to UK'”

    Read more: http://www.dailymail.co.uk/news/article-2656977/Britons-heading-Iraq-join-ISIS-militants-HUNDREDS-amid-fears-bring-terror-UK.html#ixzz34ehraHvU

  3. tpellow says

    Jun 14, 2014 at 6:39 pm

    -from ‘Money Jihad’ site-

    “Terror finance & AML news: suggested reading”

    http://moneyjihad.wordpress.com/2014/06/13/terror-finance-aml-news-suggested-reading/

  4. Brazooka says

    Jun 14, 2014 at 9:00 pm

    I pray David Cameron will one day answer for his crimes.

  5. Ulysses says

    Jun 15, 2014 at 3:38 am

    Cameron should be hanged for treason, along with so many other Brits.

  6. Notta_allah_followa says

    Jun 15, 2014 at 4:45 am

    Vladimir Ilyich Lenin:
    The Capitalists will sell us the rope with which we will hang them.

    In their short-sighted greed for cash, Britain once again secures its fate and shortens its life expectancy.

    • eib says

      Jun 15, 2014 at 11:27 am

      +1
      Oh, the wisdom of a totalitarian. More prescient than ever when totalitarian is so near to Britain.

    • ben says

      Jun 15, 2014 at 11:01 pm

      “If you want to hang the Capitalists, they will sell you even the rope.”
      Lenin

  7. Slobbering Fits says

    Jun 15, 2014 at 9:50 am

    I dont think that is going to mollify the muslims .

  8. Brian Hoff says

    Jun 15, 2014 at 10:35 am

    To pay for WWII the UK have to issue bonds with no due date on then paidind at that time than hight rate of return of 5% interest. It is the interest on the debt that is causeing problen around the world as greedly international bankers are such nations dry of assets and wealth.

FacebookYoutubeTwitterLog in

Subscribe to the Jihad Watch Daily Digest

You will receive a daily mailing containing links to the stories posted at Jihad Watch in the last 24 hours.
Enter your email address to subscribe.

Please wait...

Thank you for signing up!
If you are forwarding to a friend, please remove the unsubscribe buttons first, as they my accidentally click it.

Subscribe to all Jihad Watch posts

You will receive immediate notification.
Enter your email address to subscribe.
Note: This may be up to 15 emails a day.

Donate to JihadWatch
FrontPage Mag

Search Site

Translate

The Team

Robert Spencer in FrontPageMag
Robert Spencer in PJ Media

Articles at Jihad Watch by
Robert Spencer
Hugh Fitzgerald
Christine Douglass-Williams
Andrew Harrod
Jamie Glazov
Daniel Greenfield

Contact Us

Terror Attacks Since 9/11

Archives

  • 2020
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2019
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2018
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2017
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2016
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2015
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2014
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2013
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2012
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2011
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2010
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2009
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2008
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2007
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2006
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2005
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2004
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2003
    • December
    • November
    • October
    • March

All Categories

You Might Like

Learn more about RevenueStripe...

Recent Comments

  • William Garrison on The Fantasy Islam of Rice University’s Craig Considine (Part 3)
  • Vladimir on Islamic Republic of Iran: Turkey’s Erdogan champions Islam only as a tool to further his own interests
  • John on Muslim cleric: ‘We welcomed the takeover of ISIS because they wanted to implement the Sharia’
  • Vladimir on Muslim cleric: ‘We welcomed the takeover of ISIS because they wanted to implement the Sharia’
  • Linda McGuire on UK: Muslim stabs two women in Marks & Spencer, one in the neck, cops search for motive

Popular Categories

dhimmitude Sharia Jihad in the U.S ISIS / Islamic State / ISIL Iran Free Speech

Robert Spencer FaceBook Page

Robert Spencer Twitter

Robert Spencer twitter

Robert Spencer YouTube Channel

Books by Robert Spencer

Jihad Watch® is a registered trademark of Robert Spencer in the United States and/or other countries - Site Developed and Managed by Free Speech Defense

Content copyright Jihad Watch, Jihad Watch claims no credit for any images posted on this site unless otherwise noted. Images on this blog are copyright to their respective owners. If there is an image appearing on this blog that belongs to you and you do not wish for it appear on this site, please E-mail with a link to said image and it will be promptly removed.

Our mailing address is: David Horowitz Freedom Center, P.O. Box 55089, Sherman Oaks, CA 91499-1964

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.