Proposed Hong Kong sukuk issue assigned 'AAA' and 'cnAAA' ratings

February 7, 2017

~SINGAPORE - S&P Global Ratings today assigned its preliminary 'AAA' long-term foreign currency rating and 'cnAAA' long-term Greater China regional scale rating to the planned U.S. dollar-denominated one billion sukuk (trust certificates) by Hong Kong Sukuk 2017 Ltd. a special purpose vehicle incorporated in Hong Kong.

Under the sukuk documents, HK Sukuk will enter, among other contracts, into a lease agreement, Murabaha (financing of a sale at a determined mark-up [cost plus profit margin]), and purchase undertaking with the HKSAR

S&P says the preliminary 'AAA' issue rating and 'cnAAA' Greater China regional scale rating on the proposed issue reflect the issuer credit rating on HKSAR because the transaction fulfils the five conditions of its criteria for rating sukuk.  www.standardandpoors.com (ATI).