funding sources via the sukuk market,” said Hasif Murad, an investment manager at Kuala Lumpur-based Aberdeen Islamic Asset Management. “The predominant interest for this issuance will come from yield-hungry domestic Chinese investors.”
Silk Routes Capital hired Standard Chartered Plc, CIMB Group Holdings Bhd, Bank of China Ltd and Bank of China International Ltd to help arrange investor meetings in the Middle East, Malaysia, Brunei, Singapore andHong Kong, Tay said. The sukuk will use the structure of commodity murabaha, where goods are bought and then resold with a pre-agreed mark-up, he said.
The Islamic debt will likely have the same ratings as Sichuan Development Holdings Co, the parent of the leasing company, according to Tay. The investment arm of Sichuan provincial government is rated A- by Fitch Ratings. Officials in the two companies couldn’t be immediately reached by phone.
In a sign the traditional Silk Road is coming back to life, Chinese companies are building roads, railways and ports along the route to the Middle East, Africa and Europe. The first cargo train from China to Afghanistan completed its journey inSeptember, marking another advance in Xi’s project to deepen his nation’s influence along the old trade routes.
Issuance of global Shariahcompliant securities climbed 28 percent so far this year to $38.7 billion, after dropping 28 percent to $35.6 billion in 2015, the lowest level since 2010, according to data compiled by Bloomberg.