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China Islamic Bond Push Renews as Global-Focused Funds Quadruple

  • Sichuan Development follows Country Garden as second issuer
  • Interest coming from ‘yield-hungry domestic Chinese investors’

China Inc. plans its first dollar sukuk issuance to tap a four-fold increase in Chinese funds that can invest in bonds overseas.

Sichuan Development Financial Leasing Co. plans to sell $300 million of Islamic bonds via Singapore-based special purpose vehicle, Silk Routes Capital Pte., in December, according to sale adviser Silk Routes Financials. The deal is being done in the city-state because China doesn’t have equal tax treatment for sukuk, said Bobby Tay, an adviser at the consultancy.