Two key fixed-income deals in London could strengthen the UK’s position as one of the leading markets for international bonds and add depth to the UK’s fledgling Islamic and Chinese renminbi-denominated bond markets.

The first deal, announced last month by Prime Minister David Cameron, will make the UK the first non-Islamic country to issue a sukuk when it is launched next year. The deal could help build a larger sukuk investor base in the UK, which is seen as attractive because of its more transparent legal system. It could also mark a first step in helping UK pension schemes to offer shariah-compliant bond funds to members. In the second deal, which took place earlier this month, Industrial and Commercial Bank of China issued an offshore renminbi bond, known as dim sum, in London. It was China's first mainland-headquartered bank to issue such a bond in London.