HK banks' sukuk generates strong market response

Qamar Zaman Minhas, chairman of the Islamic Community Fund of Hong Kong, had not expected that Hong Kong's first-ever issue of a sovereign Islamic bond, or sukuk, would generate such a strong market response.

In September last year, Hong Kong sold sukuk amounting to $1 billion after attracting orders to the tune of $4.7 billion, or 4.7 times the amount on offer. The sharia-compliant bonds were allocated to more than 120 global institutional investors - 47 percent in Asia, 36 percent in the Middle East, 11 percent in the United States and 6 percent in Europe.

"It came as a pleasant surprise. The sukuk sale shows that there is a strong demand for Islamic financing in the region," said Minhas, who is also president of the Pakistan Association of Hong Kong.