162
and Luxembourg. Since 2014, Hong Kong has issued 2 more international sukuk (in 2015 and
2017), both of which have proven successful, attracting AAA ratings by S&P, oversubscription
in orders received, and a diverse range of investors. Details on the Government of Hong Kong’s
sukuk issuances are provided in Table 4.30.
Table 4.30: Overview of Hong Kong Government’s Sukuk Issuances
SPV issuer Hong Kong Sukuk
2014 Limited
Hong Kong Sukuk
2015 Limited imited
Obligor Hong Kong SAR
Government
Hong Kong SAR
Government
Hong Kong SAR
Government
Currency/format USD USD USD
Structure Ijarah Wakalah Wakalah
Sukuk ratings AAA (S&P)
Aa1 (Moody’s)
AAA (S&P)
Aa1 (Moody’s)
AAA (S&P)
AA+ (Fitch)
Sukuk assets Selected units in 2
commercial properties
in Hong Kong
A third of assets
underpinned by
selected units in an
office building in Hong
Kong; the other two-
thirds underpinned by
Shariah-compliant
commodities
A third of assets
underpinned by
selected units in an
office building in Hong
Kong; the other two-
thirds underpinned by
Shariah-compliant
commodities
Use of proceeds As purchase price for
the assets pursuant to
the purchase
agreement.
The proceeds received
by the FSI will be
credited to the Bond
Fund (set up pursuant
to resolution (Cap. 2S)
passed on 8 July
2009 under section 29
of the Public Finance
Ordinance (Cap.
2)) and then placed
with the Exchange
Fund.
No less than 34% as the
purchase price for the
Lease Assets pursuant
to the Purchase
Agreement; the
remainder of not more
than 66% for the
acquisition of
commodities to sell to
the HKSAR Government
pursuant to the
Murabahah Agreement.
The proceeds received
by the FSI will be
credited to the Bond
Fund (set up pursuant
to resolution (Cap. 2S)
passed on 8 July
2009 under section 29
of the Public Finance
Ordinance (Cap.
2)) and then placed
with the Exchange
Fund.
No less than 34% as the
purchase price for the
Lease Assets pursuant
to the Purchase
Agreement; the
remainder of not more
than 66% for the
acquisition of
commodities to sell to
the HKSAR Government
pursuant to the
Murabahah Agreement.
The proceeds received
by the FSI will be
credited to the Bond
Fund (set up pursuant
to resolution (Cap. 2S)
passed on 8 July
2009 under section 29
of the Public Finance
Ordinance (Cap.
2)) and then placed
with the Exchange
Fund.
Facility tenure 5 years 5 years 10 years
Issuance date 11 September 2014 3 June 2015 28 February 2017
Maturity date 11 September 2019 3 June 2020 28 February 2020