Thu, Oct 23, 2014
A A A
Welcome bhaimia
RSS

Islamic Finance Briefing - Category | Financial Instruments (Credit Cards, Debts, Loans, Mort more

Saudi Aramco seeks $12.5 bln in debt for Dow project, may plan Sukuk

Posted on 31 May 2012 by Laxman  |  Email|Print

State-owned oil giant Saudi Aramco is seeking to raise $12.5 billion in debt to help finance its joint venture with Dow Chemical, according to a report in Project Finance International (PFI), a unit of Thomson Reuters.
The multi-tranche, multi-tenor financing strategy will include an export credit agency (ECA) portion, a commercial bank tranche and a capital markets part, most likely a 144a issue, open to U. S. investors, or an Islamic bond………………………………………..Full Article: Source

CBB Sukuk Al-Salam Securities oversubscribed

Posted on 30 May 2012 by Laxman  |  Email|Print

The Central Bank of Bahrain (CBB) announces that the monthly issue of the Sukuk Al-Salam Islamic securities for the BD 18 million issue, which carries a maturity of 91 days, has been oversubscribed by 178%.
The expected return on the issue, which begins on 30 May 2012 and matures on 29 August 2012, is 1.18%. The securities are issued by the CBB on behalf of the Government of the Kingdom of Bahrain………………………………………..Full Article: Source

Sakana, ARK Holding to provide home financing

Posted on 24 May 2012 by Laxman  |  Email|Print

Sakana Holistic Housing Solutions, the innovative Islamic mortgage finance provider, recently signed a memorandum with ARK Holding to provide home financing for ready-to-move-in super deluxe luxury Kazerooni Villas located near St Christopher’s School in Saar.
The project comprising 10 villas each with built up area of approximately 550 sq m is developed and promoted by Kazerooni Contracting and offered for sale to Bahrainis and other GCC nationals at BD285,000 ($756,130.9) and above depending on plot size and location………………………………………..Full Article: Source

Saudi reluctance on IMF advice may curb debt sales

Posted on 22 May 2012 by Laxman  |  Email|Print

Saudi Arabia’s failure to develop a local-currency bond market in line with an International Monetary Fund recommendation may limit debt sales to the biggest companies in the world’s top oil exporter.
A 15bn-riyal ($4bn) sukuk by the state-controlled General Aviation Authority lead local-currency offerings from at least four borrowers in the biggest Arab economy, data compiled by Bloomberg show………………………………………..Full Article: Source

Sharia products see significant growth

Posted on 22 May 2012 by Laxman  |  Email|Print

Islamic financial products represent a class of investment which appeals to those looking for socially responsible or ethical investments and are a fast-growing asset class globally.
It is estimated that investors globally hold more than $1.5 trillion in Sharia-compliant assets and currently there are more than 500 funds globally that comply with Islamic principles, Central Bank of Bahrain executive director of financial institutions supervision Abdul Rahman Al Baker said at the opening session of the World Islamic Funds and Financial Markets Conference (WIFFMC2012)………………………………………..Full Article: Source

Bahrain bank to restructure $110mln debt

Posted on 22 May 2012 by Laxman  |  Email|Print

Gulf Finance House EC, a Bahraini investment bank implementing a recapitalisation plan, said it has obtained approval from sukuk holders to restructure $110 million (Dh404 million) of debt.
Holders of the Islamic bonds agreed to extend the maturity to June 2018, with a two-year grace period for the principal repayment amount in 2012 and 2013, the lender said in an emailed statement. “With the approval to restructure Gulf Finance House’s sukuk, we are now in a better position to accelerate growth initiatives for the future,” acting chief executive officer Hisham Al Rayes said, according to the statement………………………………………..Full Article: Source

RBS to focus on debt capital markets

Posted on 17 May 2012 by Laxman  |  Email|Print

The Royal Bank of Scotland (RBS) intends to focus on the debt capital markets, in particular sukuk, over the next 12 months, said head of corporate coverage in Malaysia, Ho Weng Yew.
“In our pipeline right now, we are looking at at least four to six potential issuances, spread out over nine to 12 months,” he said. He added that the potential issuance would be of sizeable amount, coming from Central Asian and European countries through financial institutions and conglomerates from different kinds of sectors………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Islamic finance sector facing key challenges

Posted on 16 May 2012 by Laxman  |  Email|Print

Islamic finance industry is facing key growth constraints that need to be addressed, Central Bank of Bahrain (CBB) executive director of financial institutions supervision Abdul Rahman Al Baker claimed. “We are seeing continuing fragmentation in Islamic financial products,” he said.
“Unless products can be standardised, there will be less liquidity and documentation costs will remain higher than for conventional banks,” he said………………………………………..Full Article: Source

Türkiye Finans in $350mln murabaha syndicated deal

Posted on 16 May 2012 by Laxman  |  Email|Print

Türkiye Finans, Turkey’s leading participation bank, has signed the largest murabaha syndicated deal of the participation banking with a sum of $350 million dollars. Led by ABC Islamic Bank, HSBC, Noor Islamic Bank and Standard Chartered Bank, the consortium included a total of 29 banks from 15 countries.
With this murabaha syndicated loan deal, Türkiye Finans continues to create added-value for Turkish economy by supporting the companies in need of corporate financing and SMEs in particular………………………………………..Full Article: Source

Businesses bullish on the prospects for Shariah-compliant products – Economist Intelligence Unit

Posted on 14 May 2012 by Laxman  |  Email|Print

A global survey of C-level and senior executives shows that demand for Shari’ah-orientated products and services is strong, and expected to grow. Among the reasons: expanding Muslim populations, rising purchasing power, shifting consumption patterns, and a broader range of products and services on offer.
The range of Shari’ha-orientated products and services is broadening, from food and Islamic finance products to pharmaceuticals, fashion and tourism, among others. The Economist Intelligence Unit carried out 13 in-depth interviews with executives of companies from the Shari’ah industry to produce the report, The Shari’ah-Conscious Consumer: Driving Demand, commissioned by Kuwait Finance House………………………………………..Full Article: Source

Sakana strengthens corporate governance

Posted on 14 May 2012 by Laxman  |  Email|Print

Sakana Holistic Housing Solutions - the Islamic mortgage finance provider held a Board meeting on 30 April 2012 wherein it inducted two additional Board of Directors Abdulellah Ebrahim Al-Qassimi and Yusuf Ali Isa Muqla Al Kawari as part of strengthening Corporate Governance in line with the Corporate Governance Code of the Kingdom of Bahrain issued by the Ministry of Industry and Commerce and Central Bank of Bahrain regulations.
Al-Qassimi and Al Kawari joined as independent and non-executive Director and with this addition total number of Board members at Sakana will be seven including three independent and non-executive. (Press Release)

Businesses are bullish on the prospects for Sharia-compliant products and services

Posted on 10 May 2012 by Laxman  |  Email|Print

A global survey of C-level and senior executives shows that demand for Sharia orientated products and services is strong, and expected to grow. Among the reasons: expanding Muslim populations, rising purchasing power, shifting consumption patterns, and a broader range of products and services on offer.
The range of Sharia-orientated products and services is broadening, from food and Islamic finance products to pharmaceuticals, fashion and tourism, among others. (Press Release)

Setting the record straight on cost of Islamic home loans

Posted on 08 May 2012 by Laxman  |  Email|Print

There is a general perception among consumers in Malaysia that Islamic home financing is more expensive than the conventional one, and they could not be more wrong. With the government’s strong commitment towards its development and various incentives, Islamic banking is now more attractive than it was initially.
In fact, said Hong Leong Islamic Bank Bhd chief executive Raja Teh Maimunah Raja Abd Aziz, rates for Islamic home financing are generally the same as the conventional ones………………………………………..Full Article: Source

Indonesia debt drops most in 8 months on Fuel: Islamic finance

Posted on 02 May 2012 by Laxman  |  Email|Print

Indonesian two-year sukuk, or the Islamic equivalent of bonds fell last month, pushing up yields by the most since September, as Standard & Poor’s, kept the nation’s credit rating at junk after the government maintained fuel subsidies.
Yields on sovereign 8.8 percent Shariah-compliant dollar-denominated bonds due April 2014 climbed 39 basis points to 2.92 percent on April 30, according to data compiled by Bloomberg………………………………………..Full Article: Source

GCC needs to refinance $60 bln of debt in 2012, RBS says

Posted on 02 May 2012 by Laxman  |  Email|Print

The six-nation Gulf Cooperation Council, which includes Saudi Arabia and the United Arab Emirates, needs to refinance $60 billion of debt between now and the end of the year, Royal Bank of Scotland Group Plc said.
“We don’t foresee any issues for refinancing” as these loans have “either been dealt with” or are being restructured or amortized, Jacco Keijzer, head of debt capital markets for the Middle East and Africa at RBS, said………………………………………..Full Article: Source

Islamic Microfinance represents opportunity to develop ethical and profitable products, says Najib

Posted on 27 April 2012 by Laxman  |  Email|Print

Islamic microfinance represents an opportunity for Islamic finance to develop ethical yet profitable products, says Prime Minister Datuk Seri Najib Tun Razak. He said at the same time, it can support social entrepreneurial activities, while investing over the long-term in social fund.

Najib, who is also the Finance Minister, said Islamic microfinance was about financial inclusion, entrepreneurship and risk sharing through partnership finance, an approach that conventional microfinance lacked………………………………………..Full Article: Source

Gulf One advises on landmark debt refinancing deal

Posted on 27 April 2012 by Laxman  |  Email|Print

Gulf One Investment Bank (Gulf One) advised and arranged a $23.50m Islamic debt refinancing transaction for the Gulf University for Science and Technology (GUST), the largest private sector university in Kuwait. The transaction was successfully closed in early 2012 with Kuwait International Bank (KIB) as the sole lender.
Gulf One combined its regional network, leading structuring skills and extensive debt arrangement experience to deliver multiple benefits for GUST including a more favorable profit rate, longer tenor and better security structure………………………………………..Full Article: Source

Gulf One arranges $23.5 mln Islamic debt refinancing deal

Posted on 26 April 2012 by Laxman  |  Email|Print

Gulf one has advised and arranged a $23.50 million Islamic debt refinancing transaction for the Gulf University for Science and Technology (GUST), the largest private sector university in Kuwait.
The transaction was successfully closed in early 2012 with Kuwait International Bank (KIB) as the sole lender. Gulf One combined its regional network, leading structuring skills and extensive debt arrangement experience to deliver multiple benefits for GUST including a more favourable profit rate, longer tenor and better security structure………………………………………..Full Article: Source

Dubai Group said to propose 1pct to 2.5pct interest in debt proposal

Posted on 24 April 2012 by Laxman  |  Email|Print

Dubai Group LLC, the investment company owned by the emirate’s ruler, proposed paying interest of 1 percent to 2.5 percent in a $6 billion debt restructuring proposal, three people familiar with the plan said.
The overall restructuring proposal is in three parts, one for a $300 million fully secured Islamic syndicated facility managed by Citigroup Inc., another $1.1 billion secured facility provided by Natixis and a third for the $4.6 billion owed to the partially secured and unsecured lenders, one person said………………………………………..Full Article: Source

Noor Islamic to arrange $1bln Turkish debt

Posted on 20 April 2012 by Laxman  |  Email|Print

Dubai-based Noor Islamic Bank has arranged more than $2 billion of debt transactions in Turkey since the beginning of 2011 and targets a further $1 billion before year-end, its chief executive officer told Reuters in an interview on Wednesday.
“There’s huge demand for financing in Turkey, mainly in the small and medium enterprises (SME) business. We’ve done $2 billion… and expect another $1 billion this year,” said Hussain Al Qemzi……………………………………….Full Article: Source

Tamweel may tap debt market again this year, acting CEO says

Posted on 17 April 2012 by Laxman  |  Email|Print

Tamweel PJSC may consider tapping the debt market again this year after the United Arab Emirates mortgage lender raised $300 million from the sale of Islamic bonds in January.
“We may potentially go back to the market this year for either a sukuk or securitization,” acting Chief Executive OfficerVarun Sood said in an interview in Dubai today. “It would be a similar transaction to what we did earlier this year.”……………………………………….Full Article: Source

Dubai’s Nakheel eyes more debt, forecasts recovery

Posted on 17 April 2012 by Laxman  |  Email|Print

Dubai’s Nakheel Properties plans to issue more debt in June, the developer said on Monday, after it posted a 30 percent rise in earnings in 2011 and forecast a recovery in the emirate’s real estate market this year.
Chairman Ali Rashid Lootah told reporters that Nakheel would likely issue a third tranche of an Islamic bond, or sukuk, in two months’ time. It aims to issue the tranche to trade creditors in part settlement of claims of 5.3 billion dirhams………………………………………..Full Article: Source

Debt issuance in ME doubles to $11 bln in Q1

Posted on 16 April 2012 by Laxman  |  Email|Print

Debt issuance in the Middle East nearly doubled to $11 billion and M&A reached $4.9 billion, while equity capital market issuances and banking fees fell to almost $1 billion and $91 million respectively, said a report.
Investment grade corporate debt accounted for 81 per cent of all Middle Eastern DCM activity during the quarter, while high yield accounted for 10 per cent, a Thomson Reuters report showed………………………………………..Full Article: Source

Oman may issue $518mln sovereign debt - central bank

Posted on 13 April 2012 by Laxman  |  Email|Print

Oman’s economy is robust and expected to grow by 5 percent this year, the Gulf Arab country’s central bank head Hamood Sangour al-Zadjali said on Wednesday, adding that the country may issue sovereign debt of OMR200m (US$518m).
“The local economy is in an excellent condition. We expect growth of 5 percent this year. Inflation is under control, somewhere between 3.5 to 4 percent,” the sultanate’s top banker told Reuters on the sidelines of a banking conference………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Saudi bank loans growth set to exceed 10pct

Posted on 13 April 2012 by Laxman  |  Email|Print

Banking loans are predicted to grow in Saudi market by more than 10 percent in the current year due to growth of deposits at steady rates, according to financial experts.
Financial expert Walid Al-Subaei said growth of loans rested on continuity of the Kingdom as one of key drivers of banking sector growth on predictions that the Kingdom’s gross domestic product (GDP) will grow by 6.8 percent in 2012………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Sakana in home financing deal with Fontana Towers

Posted on 12 April 2012 by Laxman  |  Email|Print

Bahrain-based Sakana Holistic Housing Solutions , the Islamic mortgage finance provider recently signed a Memorandum of Understanding (MOU) with The Developers WLL developers of Fontana Towers, Juffair for providing Sharia’a compliant home finance to end users.
The agreement will pave the way for Bahrainis and non-Bahrainis to own a luxury home in Fontana Towers, a residential freehold tower consisting of 400 apartments and penthouses………………………………………..Full Article: Source

Brunei: Towards creating innovative Islamic investment products

Posted on 11 April 2012 by Laxman  |  Email|Print

Despite its advantages, both in monetary value and Syariah compliance (in terms of avoiding ‘riba’), the level of public understanding on the risks associated with Islamic investment products is still low.
Due to regulatory directives and initiatives encouraging Bruneians to be conscious about financial planning, there are now opportunities in Islamic banking to be innovative in creating more Syariah-compliant instruments (products), which are needed in order to avoid concentration on any one asset class………………………………………..Full Article: Source

Global investor confidence on the rise over Dubai debt

Posted on 10 April 2012 by Laxman  |  Email|Print

The cost of insuring Dubai’s debt against default has dropped by almost half since the peak of a crisis in 2009 as recent restructuring progress and a more positive global outlook cheer investors.
It reflects a growing faith in the emirate’s ability to repay debts falling due this year. “It’s a positive sign in terms of global investor faith in Dubai,” said Nick Stadtmiller, the head of fixed income research at Emirates NBD………………………………………..Full Article: Source

BPC gets $855mln from Islamic Trade Finance for fuel imports

Posted on 10 April 2012 by Laxman  |  Email|Print

Bangladesh signed an $855 million loan agreement with the International Islamic Trade Finance Corporation (ITFC) to finance imports of crude oil and refined petroleum products.
A deal was signed among ITFC (a member of the Islamic Development Bank Group), the Energy and Mineral Resources Division and Bangladesh Petroleum Corporation at Ruposhi Bangla Hotel in Dhaka………………………………………..Full Article: Source

Egypt’s plan to sell debt to citizens abroad delayed

Posted on 05 April 2012 by Laxman  |  Email|Print

An Egyptian plan to sell certificates of deposit (CDs) - a form of debt - to its citizens living abroad to finance its deficit has been delayed because of technical problems over their issue in a single Gulf country, a minister said on Wednesday.
It also plans to sell parcels of land to its citizens abroad and dollar-denominated Islamic sukuk bonds to foreign institutions to help plug an external financing shortage estimated at $11 billion over the next 18 months………………………………………..Full Article: Source

UK needs to move faster to capture Dim Sum market

Posted on 05 April 2012 by Laxman  |  Email|Print

I do hope London’s efforts to develop into a global hub for offshore renminbi debt issuance (aka Dim Sum bonds) are pushed forward more aggressively than similar efforts to promote London as a global centre for Islamic capital markets.
That may sound a little harsh, given the existence of five fully Sharia-compliant UK-registered banks plus Islamic windows at a host of other banks in the UK. But Islamic finance continues to operate in something of commercial/wholesale backwater in the UK, while on the investment side, it’s kind of been pushed into the ethical investment bucket………………………………………..Full Article: Source

StanChart, Emirates NBD said to plan US$900mln DIFC loan

Posted on 03 April 2012 by Laxman  |  Email|Print

Standard Chartered, Emirates NBD and Noor Islamic Bank are among banks that may lend Dubai’s DIFC Investments US$900m to help it pay an Islamic bond, according to two bankers familiar with the deal.
The three banks are the front-runners for the transaction that will enable the company, the owner of properties in the tax-free Dubai International Financial Centre, to pay its US$1.25bn sukuk maturing in June, the bankers said, declining to be identified because the information is private………………………………………..Full Article: Source

Saudi Electric Co places $1.75 bln loan deal

Posted on 02 April 2012 by Laxman  |  Email|Print

Saudi Electricity Company has announced the successfully completion of the pricing and allocations for a total sukuk issuance of US$1,750 million.
The Islamic Finance compliant loan is formed of two separate sukuk certificates; a $500 million 5-year series and $1,250 million 10-year series priced at 2.665% and 4.211%, respectively, with profit payments payable on a semi-annual basis starting 2012………………………………………..Full Article: Source

Dubai Duty Free said to seek $1.1 bln through bank loan

Posted on 30 March 2012 by Laxman  |  Email|Print

Dubai Duty Free is raising a $1.1 billion loan backed by the airport retailer’s future cash earnings and hired lenders including Citigroup Inc. to help with the plan, two bankers familiar with the deal said.
Dubai Duty Free’s parent, Investment Corp. of Dubai, the emirate’s main state-owned holding company, also mandated HSBC Holdings Plc. (HSBA), Dubai Islamic Bank PJSC (DIB) and Emirates NBD PJSC (EMIRATES) to help with the fundraising, the people said, declining to be identified because the information is private………………………………………..Full Article: Source

CBB Sukuk Al-Salam Securities oversubscribed

Posted on 28 March 2012 by Laxman  |  Email|Print

The Central Bank of Bahrain (CBB) announces that the monthly issue of the Sukuk Al-Salam Islamic securities for the BD18 million issue, which carries a maturity of 91 days, has been subscribed by 167%.
The expected return on the issue, which begins on 28 March 2012 and matures on 27 June 2012, is 1.18%………………………………………..Full Article: Source

IILM plans first Islamic dollar bill sale of up to $1 bln

Posted on 22 March 2012 by Laxman  |  Email|Print

International Islamic Liquidity Management Corp. plans to sell as much as $1 billion of the first global Shariah-compliant dollar bills by the middle of the year, according to Chairman Zeti Akhtar Aziz.
The Kuala Lumpur-based multinational agency postponed the offering last year as it awaited a credit rating, an issue that will be resolved at a meeting in the Middle East this month, Zeti, who is also governor of Malaysia’s central bank, said………………………………………..Full Article: Source

UAE cuts Amlak debt by $1.1bln

Posted on 21 March 2012 by Laxman  |  Email|Print

The federal government has cut struggling Islamic lender Amlak’s debt burden by $1.1bn, the UAE economy minister said yesterday, in the latest effort to revive the Dubai mortgage provider whose stock has been halted since 2008.
The move could give Dubai’s battered property sector a boost as the federal government helps clean up the damage from Dubai’s 2009 real estate bust. Amlak, which is 45%-owned by Dubai’s largest real estate firm Emaar Properties, was one of the highest profile victims of Dubai’s construction boom which abruptly ended after the global financial crisis in 2008………………………………………..Full Article: Source

Amlak debt slashed by Dh4 bln

Posted on 21 March 2012 by Laxman  |  Email|Print

The government committee overseeing the overhaul of Amlak Finance has cut the company’s debt by Dh4 billion (US$1.08bn) as attempts to clean up the after-effects of Dubai’s debt crisis proceed.
The committee had succeeded in lowering the Islamic mortgage company’s total debt “in coordination with the federal Government and the local parties concerned”, said Sultan Al Mansouri, the Minister of Economy………………………………………..Full Article: Source

S&P rates proposed USD Saudi Electric trust certificates ‘AA-’

Posted on 20 March 2012 by Laxman  |  Email|Print

Standard & Poor’s Ratings Services said that it assigned its ‘AA-’ long-term issue rating to the proposed U.S. dollar ijara trust certificates to be launched by Saudi Electricity Global SUKUK Co., a special purpose vehicle incorporated in the Cayman Islands.
The notes benefit from a purchase undertaking provided by Saudi Electric Co. (SEC; AA-/Stable/–) and are designed to cover any payment shortfall in a timely manner and to redeem the full value of the notes at maturity………………………………………..Full Article: Source

Investor appetite for Gulf debt still remains strong

Posted on 01 March 2012 by Laxman  |  Email|Print

Despite the impact the European debt crisis has on the region, the investor appetite for GCC fixed income will continue to dominate in 2012, a senior official at the National Bank of Abu Dhabi said.
“More investors are seeing better value in GCC/EM bonds relative to similarly rated corporate and sovereign bonds in developed countries,” said Sameh Al Qubaisi, General Manager of Corporate Coverage and e-Commerce at the National Bank of Abu Dhabi………………………………………..Full Article: Source

Islamic debt spurred in $15 bln opportunity for greener Gulf

Posted on 29 February 2012 by Laxman  |  Email|Print

A body promoting development of debt sales to tackle climate change, with sponsors including National Australia Bank Ltd. and HSBC Holdings Plc, plans to spur green Islamic bond markets as the Middle East diversifies from oil.
The Climate Bonds Initiative, which has advisers from Morgan Stanley and Bank of America Corp.’s Merrill Lynch, will set up a panel to help create financial products complying with Islamic shariah law, Chairman Sean Kidney said………………………………………..Full Article: Source

Maxis: No more additional debt market funding in FY12

Posted on 27 February 2012 by Laxman  |  Email|Print

Maxis Bhd does not intend to source additional funding from the debt capital market in its financial year ending Dec 31, 2012 (FY12), according to chief financial officer Nasution Mohamed.
The company which had its RM2.45bil worth of sukuk with a maturity of 10 years approved by the Securities Commission last week said it needed the additional funding as a part of its “active capital management,” according to Nasution………………………………………..Full Article: Source

Barwa Bank to seek credit rating in 2013, followed by debt offer

Posted on 24 February 2012 by Laxman  |  Email|Print

Barwa Bank, a closely-held Sharia- compliant lender and Qatar’s newest bank, plans to apply for a credit rating next year before a possible debt offering.
“On the back of a strong set of numbers in 2011 and what we hope will be a good set of results in 2012, we will seek a rating in 2013,” Chief Executive Officer Steve Troop said……………………………………….Full Article: Source

Egypt to sell short-term dollar debt in March

Posted on 23 February 2012 by Laxman  |  Email|Print

Mumtaz al-SaeedEgypt plans to offer US-dollar certificates of deposit (CD) to Egyptians living abroad at the beginning of March to help it raise foreign currency, al-Borsa newspaper on Tuesday quoted Finance Minister Mumtaz al-Saeed as saying.
Egypt has said it is looking to sell CDs as well as Islamic sukuk instruments and land sales to Egyptians living abroad to help plug an external financing shortage estimated at $11 billion over the next 18 months………………………………………..Full Article: Source

Legal limbo stymies banks’ recovery of Dubai govt debt

Posted on 23 February 2012 by Laxman  |  Email|Print

More than two years after the Dubai debt crisis erupted, the restructuring of corporate debts remains in legal limbo as it is unclear how banks can get back their money from government-linked enterprises in the Gulf state.
The impasse, which is aggravated by deficient bankruptcy legislation, is finally pushing some banks to lose patience and consider legal action. But their tougher stance is being matched by a hardening of the government’s attitude to bailing out state-linked entities, raising the risk of further delays in completing these restructurings………………………………………..Full Article: Source

Libyan Foreign Bank rolls out Islamic products as rules change

Posted on 22 February 2012 by Laxman  |  Email|Print

The Libyan Foreign Bank will offer Shariah-compliant products as the government prepares regulation to make Islamic banking the norm in the North African nation following the ouster of Muammar Qaddafi.
“Islamic products are being introduced and will predominate, but we will not relinquish the use of traditional banking,” General Manager Mohamed Ben Yusef said in an interview today in Tripoli. “A decision will be made by the Central Bank of Libya by the end of March to introduce a new article in the banking law regarding Islamic governance.”……………………………………….Full Article: Source

Saudi’s Dar al-Arkan to repay $990 mln debt this year

Posted on 20 February 2012 by Laxman  |  Email|Print

Saudi Arabia’s biggest property developer, Dar al-Arkan, plans to repay about 3.7 billion riyals ($986.6 million) of debt this year, its chief financial officer said on Sunday.
Dar al-Arkan has around 4.6 billion riyals of debt maturing this year, including the $1 billion sukuk, or Islamic bond, maturing in July, 200 million riyals which have been rolled over, and 700 million riyals which is expected to be refinanced through an asset-based facility, Anand Raheja said……………………………………….Full Article: Source

Maxis plans RM2.45bln Islamic debts

Posted on 17 February 2012 by Laxman  |  Email|Print

Maxis Bhd is proposing to issue Islamic medium-term notes with a nominal value of up to RM2.45bil based on the sukuk musharakah principle for capital expenditure and working capital purposes.
The proposed unrated sukuk, which would have a tenure of up to 30 years from the date of first issue, would also be used for general funding requirements as well as general corporate purposes of the company and its subsidiaries………………………………………..Full Article: Source

Dubai plans to prove ‘everybody wrong’ as debt repayments loom

Posted on 16 February 2012 by Laxman  |  Email|Print

The emirate’s five-year credit default swaps tumbled 50 basis points this year to 395, according to data provider CMA, which is owned by CME Group Inc. and compiles prices quoted by dealers in the privately negotiated market. They remain the fourth-highest in the Middle East.
DIFC Investment’s sukuk were at 96.71 cents on the dollar at 5:53 p.m. in Dubai, near the highest level since November 2007. Jebel Ali Free Zone notes were at 94.68 cents on the dollar, according to data compiled by Bloomberg. The yield on Dubai’s 5.591 percent government dollar bond due June 2021 has dropped 38 basis points, or 0.38 percentage point, this year to 5.60 percent………………………………………..Full Article: Source

JAFZA to meet debt obligations with new Sukuk and loans

Posted on 08 February 2012 by Laxman  |  Email|Print

The Jebel Ali Free Zone (JAFZA) has been consulting a consortium of banks over how to repay its AED 7.5 billion ($2 billion) Sukuk due in November. JAFZA is reportedly in talks with Dubai Islamic Bank, National Bank of Abu Dhabi and Standard Chartered about how to meet the obligation, without appointing any of the banks to a particular role.
Sources have told Reuters that most of the liability is set to be rolled over using a syndicated loan and a new Sukuk………………………………………..Full Article: Source

banner
October 2014
M T W T F S S
« May    
 12345
6789101112
13141516171819
20212223242526
2728293031