UK Government Consolidates Commitment to Originate Sukuk in the Wholesale Sterling Market
The UK government took a definitive step nearer to the eventual issuance of a debut sovereign benchmark Islamic bond (Sukuk) when Chancellor of the Exchequer Alistair Darling confirmed in his Budget 2008 announcement on 12th March that the Government remains committed to examining this issue and will continue to assess the feasibility of issuing a sovereign Sukuk."
"We are determined to consider fully the overall implications of such an issuance. Outstanding tax, regulatory and value-for-money considerations mean than any final decision taken today would be premature. However, the Government will take legal powers in the Finance Bill 2008 to facilitate a future sovereign issuance," stressed Mr Darling.
In addition, the Government plans a further series of legislation in the Finance Bill 2009 aimed at establishing a level playing field between conventional and alternative financing arrangements including investment bonds.
These developments augur well for the nascent UK Sukuk market and the future development of a Euro Sukuk market. Already there are strong indications that a number of blue chip British corporates are planning substantial Sukuk issuances during 2008 or early 2009.
In light of this, a focused seminar on Islamic Capital Markets could not be more timely, especially to inform the market and to discuss issues relating to structures, Shariah governance, tax treatment, ratings, listings, floating or fixed rate issuances and a host of other key issues.
Places to attend this seminar are limited. To ensure that you reserve your place, please register at:
http://www.icg-events.co.uk/iseminars/capital_overview.htm
