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<p>In the Sukuk structure, rental payments provide the income for investors. When
the Sovereign Sukuk were issued in July 2014 the profit rate was set at 2.036% in
line with the yield on gilts of similar maturity, making the investor return on the
Sukuk broadly equivalent to that on conventional gilts of similar maturity.</p><p>
</p><p>Three central government properties form the underlying assets which underpin
the Sukuk.</p><p> </p><p>The Government was clear at the time of issuance that the
Sukuk issuance was not for debt financing purposes. Instead, it was issued to deliver
on the government’s commitment to become the western hub for Islamic finance. The
issuance showed that the UK is open for business with all parts of the world and provided
high quality capital to UK-based Islamic banks.</p><p> </p><p>UK based institutions
that offer Islamic finance services are contributing to jobs and growth with assets
totalling $4.5bn at the end of 2014.</p><p> </p>
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