Investment bank HSBC is expecting to arrange the sale of up to $3 billion in Islamic bonds in the third quarter of this year, it has been reported.
Hissam Kamal Hassan, the bank's head of Islamic finance, said that the bonds, or sukuk, are to be sold in the Middle East for petroleum companies and utility firms.
He told Reuters: "We are expecting two to three transactions of international benchmark sizes. Issuers are both state-sponsored companies and private issuers."
One of the companies for whom the bonds are expected to be sold is Saudi Electricity Company, which last week announced that it expected to raise $533.3 million in 2007.
News of the sale comes after Deutsche Bank announced its sales of sukuk worldwide could stand at $50 billion this year, having only sold $20 million over the course of 2006.
A report from international credit agency Standard & Poor's said that it expected that sales of sukuk globally are expected to be in excess of $100 billion by 2010.