The Government has confirmed that the UK has become the first country outside the Islamic world to issue sovereign sukuk, which is the Islamic equivalent of a bond.

According to HM Treasury, £200 million of sukuk, maturing on 22 July 2019, have been sold to investors based in the UK and other Islamic finance markets around the world. The profit rate on the sukuk has been set at 2.036% in line with the yield on gilts of similar maturity.

The issue will settle on 2 July 2014, and will be listed on the London Stock Exchange.

View Government issues first Islamic bond, 25 June 2014