HSBC has received approval from the Hong Kong Monetary Authority to sell Sukuk (Islamic Bonds) in Hong Kong.

Leveraging the global resources and strength of its global Islamic banking division, HSBC Amanah, the Bank supports the local development of Islamic finance and is the first local bank in the territory to gain such approval.

Bruno Lee, head of liabilities business and wealth management at HSBC, said: "The launch of Sukuk is a first step for us to tap into the markets in the Middle East and other Islamic countries as well as to help further broaden Hong Kong's capability as a global financial centre.

"Though the development of Islamic finance in Hong Kong is still in its infancy, there is growing interest in Islamic financial solutions among Muslim and non-Muslim investors. People may not want to invest in highly complicated financial products but prefer to go back to basic investment tools. By offering Shariah-compliant products, we hope to provide more alternatives for Hong Kong investors seeking a diversified investment portfolio."

The two short- to medium-term secondary market Sukuk, being sold by HSBC in other markets, are offered to retail customers via private placement at two HSBC branches in Tsim Sha Tsui near the Kowloon Mosque and Islamic Centre. The minimum investment amount is US$100,000.