Red Hat Satellite 5.8 installation fails with "createdb: database creation failed: ERROR: encoding "UTF8" does not match locale "en_GB"

Issue

• Red Hat Satellite v 5.8 installation fails at the stage of database installation with following error message.

** Database: Setting up database connection for PostgreSQL backend.
Database "rhnschema" does not exist
** Database: Installing the database:
** Database: This is a long process that is logged in:
** Database:   /var/log/rhn/install_db.log
*** Progress: ##
Could not install database.

# cat  /var/log/rhn/install_db.log
Stopping rh-postgresql95-postgresql service: [  OK  ]
Starting rh-postgresql95-postgresql service: [  OK  ]
createdb: database creation failed: ERROR:  encoding "UTF8" does not match locale "en_GB"
DETAIL:  The chosen LC_CTYPE setting requires encoding "LATIN1".

# locale
LANG=en_GB.UTF-8
LC_CTYPE="en_GB.UTF-8"
LC_NUMERIC="en_GB.UTF-8"
LC_TIME="en_GB.UTF-8"
LC_COLLATE="en_GB.UTF-8"
LC_MONETARY="en_GB.UTF-8"
LC_MESSAGES="en_GB.UTF-8"
LC_PAPER="en_GB.UTF-8"
LC_NAME="en_GB.UTF-8"
LC_ADDRESS="en_GB.UTF-8"
LC_TELEPHONE="en_GB.UTF-8"
LC_MEASUREMENT="en_GB.UTF-8"
LC_IDENTIFICATION="en_GB.UTF-8"
LC_ALL=