Download HMT1355 - Sukuk Banking Sevices notice

UNCLASSIFIED
Expression of Interest
Contract reference HMT 1355
HM Treasury
___________________________________________________________________
Expression of Interest
for the provision of
Banking Services related to issuance of Sukuk (Islamic equivalent of bonds)
Contract reference: HMT 1355
________________________________
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Expression of Interest
HM Treasury
Contract reference HMT 1355
Section A Background
The Prime Minister announced on the 29 October 2013 that the Treasury is working
on the practicalities of issuing a bond-like Sukuk worth around £200 million. In taking
this work forward the Treasury is now looking to recruit external advisers.
HM Treasury envisages the project comprising of two distinct phases.
Preparatory Phase
Several months
•
•
•
•
Structuring
Documentation
Sharia’a approval
Regulatory approvals
Execution phase
A number of
weeks
• Marketing
• Book building
• Pricing
• Settlement
The first phase concerns the preparatory work required to structure the Sukuk and
develop it such that it is ready to bring to market. This work will include, but is not
necessarily limited to, identifying an asset, structuring, documentation, gaining
Sharia’a approval, addressing legislative issues, tax analysis, seeking the
appropriate regulatory approvals, developing solutions for delegate arrangements,
payment services, etc. It is envisaged that this phase could take several months.
In the near term, HM Treasury is looking to procure the services of one or more
banks with an in depth expertise in Sukuk transactions to lead the work on this
phase: the structuring bank(s). Banks interested in this role must meet the criteria
outlined in Part 2 of this document. At this stage, HM Treasury has not decided
whether it would like one or more than one bank to perform this role.
Assuming that all structuring issues can be successfully resolved and no major
problems are encountered, we expect the project to proceed to an execution phase
during 2014-15. For the execution phase HM Treasury will be seeking to appoint a
syndicate to execute the transaction. It is envisaged that the structuring bank(s)
will also act as a joint-lead manager on the transaction. But the syndicate is likely to
comprise a wider group of banks: the syndicate banks. The appointment of
syndicate banks will be made later in 2014-15.
HM Treasury will, separately, be appointing legal counsel to work on both stages of
the transaction. The structuring bank(s) in particular will need to work closely with
HM Treasury’s legal counsel to successfully deliver the project.
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UNCLASSIFIED
Expression of Interest
Contract reference HMT 1355
HM Treasury
Section B Expression of Interest
HM Treasury is seeking an expression of interest from organisations that would like
to be considered as either a structuring bank (provided that they meet the criteria
specified in Part 2 of this form) or as a syndicate bank. If you are interested, you
are requested to complete and return the appropriate expression of interest
documentation in Section B of this document.
Although this form requests expressions of interest in both the structuring bank and
syndicate bank roles, HM Treasury is only seeking to procure the services of a
structuring bank at this stage. A separate procurement will be run for syndicate
banks later in 2014-15. The selection of syndicate banks will not be limited to
those who express an interest at this stage; there will also be a further invitation to
express such interest at a later stage.
Therefore, only those organisations who express an interest in being a structuring
bank need provide any supporting evidence of their credentials at this time.
1.
Instructions
1.1
The expression of interest should be submitted and received by HM Treasury
before the deadline on 3rd January 2014 to the following email address:
[email protected]
1.2
Organisations can express interest in a single or both services. Only
organisations that are interested in being considered for the structuring
bank should complete Part 2 of the documentation.
1.3
All documents and correspondence relating to the tender must be written
legibly and in English.
2.
Evaluation of Expressions of Interest
2.1
HM Treasury will evaluate all tenders without prejudice or bias.
2.2
The Part 2 Response will be evaluated on a MEET or DOES NOT MEET
basis. Only respondents judged to MEET all the requirements will be
shortlisted.
Those organisations that express an interest only in being a syndicate bank can
expect to hear from HM Treasury later in 2014-15, when a procurement process for
the role of syndicate bank will be undertaken. The selection of syndicate banks
will not be limited to those who express an interest at this stage; there will also be a
further invitation to express such interest at a later stage.
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UNCLASSIFIED
Expression of Interest
Contract reference HMT 1355
HM Treasury
For those organisations expressing an interest in the role of structuring bank, the
indicative timetable of key milestones for the procurement process is as follows:
Call for Expression of Interest issued: 16th December 2013
Clarification Deadline: 20th December 2013
Expression of Interest Deadline: Noon on 3rd January 2014
Phase 1 Evaluation of the Expressions of interest: 3rd to 10th January 2014
Phase 1 Structuring Bank Request for Proposal: issued to those firms judged
to meet the criteria outlined in Part 2 of this form: 10th January 2014
Responses to Request for Proposals delivered to HM Treasury: 15th January
2014
Contract Award Date: 27th January 2014
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Expression of Interest
HM Treasury
Contract reference HMT 1355
Part 1 - to be completed by all organisations
We would like to express an interest to be considered for the services:
1. Syndicate bank
☐
Should complete Part 1 Section below
This may be subject to a further call for Expression of Interest
2. Structuring Bank
Must complete both Part 1 and Part 2 below
☐
Part 1 Response
1.
Organisation Details
Full legal name, address and website of the organisation in whose name the
tender will be submitted
Company Name
Address
Town/City
Postcode
Country
Website (if any)
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Expression of Interest
2.
Contract reference HMT 1355
HM Treasury
Organisation Details
Provide Name, position, telephone number and e-mail address of the Potential
Service Provider’s Representative for this project.
Name
Position
Telephone Number
Fax Number
(if available)
E-mail
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Expression of Interest
3.
Contract reference HMT 1355
HM Treasury
Discretionary grounds for rejection
The Potential Service Provider confirms that it:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
being an individual is not bankrupt or has not had a receiving order or administration order
or bankruptcy restrictions order made against him or has not made any composition or
arrangement with or for the benefit of his creditors or has not made any conveyance or
assignment for the benefit of his creditors or does not appear unable to pay or to have no
reasonable prospect of being able to pay, a debt within the meaning of section 268 of the
Insolvency Act 1986, or article 242 of the Insolvency (Northern Ireland) Order 1989, or in
Scotland has not granted a trust deed for creditors or become otherwise apparently
insolvent, or is not the subject of a petition presented for sequestration of his estate, or is
not the subject of any similar procedure under the law of any other state;
being a partnership constituted under Scots law has not granted a trust deed or become
otherwise apparently insolvent, or is not the subject of a petition presented for
sequestration of its estate;
being a company or any other entity within the meaning of section 255 of the Enterprise
Act 2002 has not passed a resolution or is not the subject of an order by the court for the
company’s winding up otherwise than for the purpose of bona fide reconstruction or
amalgamation, nor had a receiver, manager or administrator on behalf of a creditor
appointed in respect of the company’s business or any part thereof or is not the subject of
similar procedures under the law of any other state;
has not been convicted of a criminal offence relating to the conduct of his business or
profession;
has not committed an act of grave misconduct in the course of his business or profession;
has fulfilled obligations relating to the payment of social security contributions under the
law of any part of the United Kingdom or of the relevant State in which the organisation is
established;
has fulfilled obligations relating to the payment of taxes under the law of any part of the
United Kingdom or of the relevant State in which the economic operator is established;
is not guilty of serious misrepresentation in providing any information required of him
under this regulation;
in relation to procedures for the award of a public services contract, is licensed in the
relevant State in which he is established or is a member of an organisation in that relevant
State when the law of that relevant State prohibits the provision of the services to be
provided under the contract by a person who is not so licensed or who is not such a
member.
Organisation’s name
Signed
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Expression of Interest
4.
Contract reference HMT 1355
HM Treasury
Statement Relating To Good Standing
STATEMENT RELATING TO GOOD STANDING — GROUNDS FOR OBLIGATORY
EXCLUSION (IN ELIGIBILITY) AND CRITERIA FOR REJECTION OF CANDIDATES in
accordance with Regulation 23 of the Public Contracts Regulations 2006 (as amended)
We confirm that, to the best of our knowledge, the Potential Service Provider is not in
breach of the provisions of Regulation 23 of the Public Contracts Regulations 2006 (as
amended) and in particular that:
The Potential Service Provider or its directors or any other person who has powers of
representation, decision or control of the named organisation has not been convicted of
any of the following offences:
(a)
(b)
(c)
(d)
(e)
(f)
conspiracy within the meaning of section 1 of the Criminal Law Act 1977 where that
conspiracy relates to participation in a criminal organisation as defined in Article 2(1) of
Council Joint Action 98/733/JHA (as amended);
corruption within the meaning of section 1 of the Public Bodies Corrupt Practices Act 1889
or section 1 of the Prevention of Corruption Act 1906 (as amended);
the offence of bribery;
fraud, where the offence relates to fraud affecting the financial interests of the European
Communities as defined by Article 1 of the Convention relating to the protection of the
financial interests of the European Union, within the meaning of:
(i)
the offence of cheating the Revenue;
(ii)
the offence of conspiracy to defraud;
(iii)
fraud or theft within the meaning of the Theft Act 1968 and the Theft Act 1978;
(iv)
fraudulent trading within the meaning of section 458 of the Companies Act 1985 or
section 993 of the Companies Act 2006;
(v)
defrauding the Customs within the meaning of the Customs and Excise
Management Act 1979 and the Value Added Tax Act 1994;
(vi)
an offence in connection with taxation in the European Community within the
meaning of section 71 of the Criminal Justice Act 1993; or
(vii) destroying, defacing or concealing of documents or procuring the extension of a
valuable security within the meaning of section 20 of the Theft Act 1968;
money laundering within the meaning of the Money Laundering Regulations 2003 or
Money Laundering Regulations 2007; or
any other offence within the meaning of Article 45(1) of Directive 2004/18/EC as defined
by the national law of any relevant State.
Organisation’s name
Signed
Position
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Expression of Interest
Contract reference HMT 1355
HM Treasury
Date
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Expression of Interest
Contract reference HMT 1355
HM Treasury
Part 2 - Structuring Bank Requirements
HM Treasury is looking for an organisation that has a broad distribution network and
client base which spans both those institutions that comprise the existing investor
base in UK government securities as well as new sources of demand for a UK
Sukuk, both domestic and overseas and can also demonstrate that it has:

extensive experience of issuing international Sukuk on behalf of sovereign
issuers in different regions of the globe, including debut issues.

experience of successfully acting as the global co-ordinator or lead
documentation bank on international Sukuk transactions across a variety of
geographical regions.

significant market share in both foreign and local-currency Sukuk markets
across different geographical regions according to industry league tables.

a Sharia’a board of recognised leading Islamic scholars who have experience
of opining on Sukuk transactions targeted at investors in a wide range of
geographical regions.

evidence of having worked to further the development of Islamic financial
markets in different jurisdictions.

an understanding of the relevant parts of the UK legal and taxation framework
and the issues that need to be addressed to bring a UK sovereign Sukuk to
market.

significant operations within the EU.

suitably qualified and experienced staff based in the UK (or can make staff
available in the UK within 24 hours) to conduct face-to-face meetings with HM
Treasury and the UK Debt Management Office as required.

the capability of providing all of the following services (including):
 Act as global co-ordinator or lead documentation bank
 Securing Sharia’a approval
 Liaising with listing and regulatory authorities
 Paying agent and registration services solutions
 Acting as delegate or trustee
 Advice on sales strategy
 Marketing, both domestically and internationally
 Execution of the transaction including: book running, pricing, allocations
advice
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Expression of Interest
Contract reference HMT 1355
HM Treasury
Part 2 Response
1.
Structuring Bank
You should provide a maximum of 10 A4 sides that demonstrate how your
organisation meets the structuring bank requirements (may be provided as a
separate slide pack or document).
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