Hong Kong hires banks for first Islamic bond

Issue is expected to raise between $500m and $1bn

Hong Kong has mandated HSBC , Standard Chartered, CIMB Group Holdings and National Bank of Abu Dhabi to arrange its first Islamic bond issue, IFR reported on Friday.

The Hong Kong Monetary Authority is handling the deal, which is expected in September, IFR, a Thomson Reuters publication, said citing sources close to the deal.

The Islamic bond, or sukuk, is expected to raise between $500m and $1bn. It will likely have a tenor of 5 years and will be targeted at global institutional investors, Peter Pang, HKMA deputy chief executive, told a conference in April.

Hong Kong lawmakers passed a tax bill in late March to allow for sukuk sales.

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