UK export credit agency to guarantee sukuk bond for first time

(Reuters, London, 28 October 2014) – Britain’s export credit agency will guarantee a sukuk bond for the first time next year, the finance ministry said on Tuesday, as it seeks to boost London’s position as a centre for Islamic finance… UK Export Finance (UKEF) expects to guarantee an Islamic bond next year issued by a customer of European plane maker Airbus, the finance ministry said… Issuers of Islamic bonds say they operate in compliance with sharia, or Islamic law. A ban on charging interest and investing in prohibited industries such as alcohol, pornography and gambling, are among features that distinguish it from conventional finance.