Mil­lion mil­lion

China Daily (Canada) - - BUSINESS -

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.

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