The UK Export Finance (UKEF) credit agency has announced that it is to guarantee a sukuk bond for the first time next year. Sukuk securities are structured to comply with Islamic or sharia law, which does not permit fixed-income interest-bearing bonds.

The UKEF said that the sukuk bond will be issued by a customer of Airbus; this is believed to be the first aviation sukuk to be backed by any export credit agency in the world.

The Treasury expects that the pricing of the bond will be consistent with a conventional capital-markets product. Speaking in Dubai, Treasury minister Andrea Leadsom said: “Our ambition is that this sukuk product will be rolled out to a range of other customers and sectors.”

Meanwhile, the UKEF has strengthened its regional team of specialists with the addition of six export finance advisers and three advisers who will specialise in providing
information to medium-size businesses.

The UKEF’s Paul Croucher said: “We support businesses of all sizes and supplement the financial support available to
exporters from the commercial sector.

Having that specialist understanding locally based, where growing businesses can quickly access it, is what can help make exports happen.”