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Islamic Finance Briefing - Category | Bonds (Sukuk) more

CBB Sukuk Al-Salam Securities oversubscribed by 246pct

Posted on 26 March 2013 by Laxman  |  Email|Print

The Central Bank of Bahrain (CBB) announced 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 oversubscribed by 246%.
The expected return on the issue, which begins on 27 March 2013 and matures on 26 June 2013, is 0.81% compared with 0.90% for the previous issue. The securities are issued by the CBB on behalf of the Government of the Kingdom of Bahrain………………………………………..Full Article: Source

Sukuk: Depth of the financial market need to improve

Posted on 25 March 2013 by Laxman  |  Email|Print

While the sukuk or the Islamic bond market has been growing rapidly with increasing number of large and liquid issues, the depth of the financial market, especially in the GCC, is not at the level of the developed countries or at a level some global fund managers would ideally like it to be. For that to happen, global asset manager Franklin Templeton Investments believes that the policy makers should concentrate their efforts at developing non-banking financial services.
While acknowledging that liquidity has been on an improving trend, Mohieddine Kronfol, chief investment officer, Global Sukuk and Mena Fixed Income at Franklin Templeton Investments, clearly would like to see policy makers in the Gulf and Malaysia do more to promote money, debt and sukuk markets to have more liquidity going forward………………………………………..Full Article: Source

Egypt: Seventeen PPP projects to be financed using sukuk: Panel

Posted on 25 March 2013 by Laxman  |  Email|Print

Seventeen upcoming Public Private Partnership (PPP) projects will be financed using sukuk, confirmed Ahmed Al-Naggar, financial advisor to the Ministry of Finance, during the 2nd Annual PPP Investment Summit in Cairo on Sunday.
“Egypt has acquired 1.2% of the total sukuk market in the world,” he said. “This is a very low percentage compared with Malaysia, which has 24%, and Bahrain, which has 2.4%.”……………………………………….Full Article: Source

CBJ plans to issue sovereign Islamic sukuk

Posted on 25 March 2013 by Laxman  |  Email|Print

The Central Bank of Jordan (CBJ) is examining mechanisms to issue sovereign Islamic sukuk in the primary market in order to widen the base of investment tools that can be traded in the secondary market on the one hand and, on the other, to come up with a new method for financing the treasury besides the traditional financing means.
CBJ Governor Ziad Fariz underlined the importance of coming up with new financing tools in accordance with Sharia (Islamic law) to accelerate the economic growth, the state news agency, Petra, reported………………………………………..Full Article: Source

UAE’s Dana Sukuk restructuring vote postponed to April 23

Posted on 25 March 2013 by Laxman  |  Email|Print

Dana Gas, the Abu Dhabi-listed energy firm, postponed the shareholder vote for restructuring of the $920 million sukuk to April 23 after a meeting on Sunday failed to meet the required quorum. This is the second time the meeting has been rescheduled after a majority was not reached at a shareholder meet on March 21. Dana announced the new date in a filing on the Abu Dhabi bourse.
Dana became the first company in the United Arab Emirates to miss repayment of a maturing bond on October 31 but agreed new terms with a creditor committee representing bondholders, which included investment firms Ashmore Group and BlackRock, a week later………………………………………..Full Article: Source

Gulf bonds’ order books ‘not as solid as they seem’

Posted on 25 March 2013 by Laxman  |  Email|Print

Bond and sukuk issues from the Gulf Arab region in the past few weeks have drawn huge investor order books but then performed poorly in the secondary market - a sign that some of the orders are not as solid as they appear.
In order to ensure they obtain part of a new issue, institutional investors are bidding for larger amounts than they actually want, because they assume their bids will be cut when the issuer decides on allocations, traders and analysts say………………………………………..Full Article: Source

SBP issues instructions for issuance of Ijara Sukuk

Posted on 25 March 2013 by Laxman  |  Email|Print

The State Bank of Pakistan (SBP) on Friday announced that the proceeds of the government of Pakistan Ijara Sukuk will be used by Pakistan Domestic Sukuk Company Limited (PDSCL) to purchase the assets as an agent for and on behalf of the investors.
The State Bank will conduct an auction through which Sukuk investors will be identified. A circular issued by the State Bank said that the investors will execute the Sukuk subscription undertaking in favour of Pakistan Domestic Sukuk Company Limited and the National Highway Authority (NHA), which will record the commitments of the investors to subscribe the Sukuk to be issued by PDSCL………………………………………..Full Article: Source

Nominal value of sukuk listings on Dubai markets hits $ 10.63 bln

Posted on 22 March 2013 by Laxman  |  Email|Print

Sheikh Ahmed bin Saeed Al-Maktoum, chairman and CEO of Emirates Airline and Group, yesterday rang the opening bell at Dubai Financial Market (DFM) during the listing ceremony of a sukuk issued by Emirates Airline on Nasdaq Dubai, the Middle East’s international financial exchange.
The listing of the $ 1 billion sukuk supports Dubai’s intensive efforts in this regard after the launch of (Dubai the Center of Sukuk) initiative by Sheikh Mohammed bin Rashid Al-Maktoum, UAE Vice President, Prime Minster and Ruler of Dubai and in line with his vision to position Dubai as the capital of Islamic economy globally………………………………………..Full Article: Source

Egypt doesn’t see Sukuk as IMF loan substitute

Posted on 22 March 2013 by Laxman  |  Email|Print

Egypt doesn’t see sukuk as a substitute for a $4.8 billion International Monetary Fund loan being sought by the government, an adviser to the finance minister said. The sukuk law, which would allow Egypt for the first time to offer Islamic sovereign debt, has been sent by parliament’s upper house to President Mohamed Mursi for approval, and will be implemented in July, the Finance Ministry’s Ahmed Al-Nagar said.
Egypt has been searching for additional funds alongside talks with the IMF on a loan that has been delayed amid political unrest. The government says an IMF accord will restore investor confidence and help revive an economy that has stalled since the 2011 uprising against Hosni Mubarak………………………………………..Full Article: Source

Egyptian controversy over proposed Islamic bonds law

Posted on 22 March 2013 by Laxman  |  Email|Print

The approval of a controversial draft law allowing the issuance of Islamic bonds, commonly known as sukuk, has rekindled debate in Egypt over whether it contradicts Islamic law. According to Egypt’s state-run daily al-Ahram, the bill was approved Tuesday night by the Shura Council, the country’s temporary legislature.
Three months ago, the cabinet approved a law regulating sukuk dealings but it was rejected by the country’s prestigious religious institution Al-Azhar over concerns that the new financial system might allow foreigners to own key state assets as well as suspicions about its fixed interests that are not allowed in Islam………………………………………..Full Article: Source

Egypt: Al-Azhar insists on discussing Sukuk bill

Posted on 22 March 2013 by Laxman  |  Email|Print

Al-Azhar confirms its insistence on discussing the Sukuk bill in spite of its being adopted by the Shura Council. The bill was also submitted to the President without taking the opinion of al-Azhar on its compliance with the Sharia.
An official source in al-Azhar said that the Grand Imam Dr. Ahmed al-Tayyeb decided to put the bill to discussion in the monthly ordinary session of the Islamic Research Academy next week to opine on the bill. The source pointed out that although the opinion of al-Azhar is an advisory one, it would undertake its duty and shoulder its responsibility for discussing the bill and say its opinion………………………………………..Full Article: Source

Gulf sukuk: Order books ‘probably inflated’

Posted on 22 March 2013 by Laxman  |  Email|Print

Bond and sukuk issues from the Gulf region in the past few weeks have drawn huge investor order books but then performed poorly in the secondary market — a sign that some of the orders are not as solid as they appear.
In order to ensure they obtain part of a new issue, institutional investors are bidding for larger amounts than they actually want, because they assume their bids will be cut when the issuer decides on allocations, traders and analysts say………………………………………..Full Article: Source

Emirates’ sukuk on Nasdaq Dubai

Posted on 22 March 2013 by Laxman  |  Email|Print

Sheikh Ahmed Bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, today rang the opening bell at Dubai Financial Market (DFM) during the listing ceremony of a Sukuk issued by Emirates Airline on Nasdaq Dubai.
The listing of the one billion dollar Sukuk supports Dubai’s intensive efforts in this regard after the launch of (Dubai the Center of Sukuk) initiative by Vice President and Prime Minister of UAE and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum, and in line with His Highness’s vision to position the emirate as the capital of Islamic economy globally………………………………………..Full Article: Source

QR4bn bonds, sukuk offer from QCB set to ‘boost local funding’

Posted on 22 March 2013 by Laxman  |  Email|Print

The Qatar Central Bank’s (QCB) move to offer QR4bn of bonds and sukuk is “positive” and will enhance options for domestic financing and reduce reliance on foreign funding, according to Beltone Financial.
“The issuances are seen as part of continued efforts by Qatari authorities to facilitate liquidity management and deepen local financial markets by extending the domestic bond yield curve,” Beltone said in a report. The QCB recently announced that it will offer QR3bn three-year bonds and QR1bn five-year sukuk on a quarterly basis starting this month………………………………………..Full Article: Source

Saudi Binladin plans sukuk sale

Posted on 22 March 2013 by Laxman  |  Email|Print

Saudi Binladin Group, one of the largest construction firms in the kingdom, is currently meeting fixed income investors as it plans to issue a new local currency Islamic bond, or sukuk, sources aware of the matter told Reuters.
Roadshows are due to take place this week and next, at which point the size and pricing of the deal would be determined, a banking source said, speaking on condition of anonymity as he was not authorised to speak to media. All-in pricing is likely to be around 2.5 percent, a second banking source said, giving a spread over the three-month Saudi interbank offered rate (Saibor) of around 150 basis points………………………………………..Full Article: Source

No more sukuk for DEWA

Posted on 22 March 2013 by Laxman  |  Email|Print

Dubai Electricity and Water Authority (DEWA) is not expecting to issue more Islamic bonds before 2015 if electricity demand growth in the emirate remains steady, its chief executive said on Wednesday.
“According to cash flow, there will be no additional sukuk or [conventional] bonds [in 2013]. I do not think we are going to target sukuk next year, except if [electricity consumption] growth changes to 10 per cent or growth targets change,” Saeed Mohammad Al Tayer said………………………………………..Full Article: Source

CBJ seeks ways to issue sukuk

Posted on 22 March 2013 by Laxman  |  Email|Print

The Central Bank of Jordan (CBJ) is currently examining mechanisms to issue sovereign Islamic sukuk in the primary market in order to widen the base of investment tools that can be traded in the secondary market on the one hand and, on the other, to come up with a new method for financing the Treasury besides the traditional financing means.
Addressing experts meeting at the Arab Academy for Banking & Financial Sciences on Thursday, CBJ Governor Ziad Fariz underlined the importance of coming up with new financing tools in accordance with Sharia (Islamic law) to accelerate the economic growth………………………………………..Full Article: Source

Islamic finance body in ‘final stages’ of 1st sukuk issuance, says BNM Governor

Posted on 21 March 2013 by Laxman  |  Email|Print

International Islamic Liquidity Management Corp., backed by a group of central banks located in Asia and the Middle East, is in the “final stages” of issuing its first sukuk or Islamic bond, Malaysian central bank governor Tan Sri Dr Zeti Akhtar Aziz said on Wednesday.
Kuala Lumpur-headquartered IILM, established in 2010, was entasked to issue short-term sukuk, or Islamic bonds, to help sharia-compliant banks manage liquidity and create a liquid cross-border market for Islamic instruments. “The shareholders (of IILM) are in the process of supplying the underlying assets for the sukuk,” Zeti told reporters in the Malaysian capital. “There will be an announcement on this in the near term, it would be correct to say that it is in the final stages.”……………………………………….Full Article: Source

Nominal value of sukuk listings on Dubai markets hits $ 10.63 bln

Posted on 21 March 2013 by Laxman  |  Email|Print

Sheikh Ahmed bin Saeed Al-Maktoum, chairman and CEO of Emirates Airline and Group, rang the opening bell at Dubai Financial Market (DFM) during the listing ceremony of a sukuk issued by Emirates Airline on Nasdaq Dubai, the Middle East’s international financial exchange.
The listing of the $ 1 billion sukuk supports Dubai’s intensive efforts in this regard after the launch of (Dubai the Center of Sukuk) initiative by Sheikh Mohammed bin Rashid Al-Maktoum, UAE Vice President, Prime Minster and Ruler of Dubai and in line with his vision to position Dubai as the capital of Islamic economy globally………………………………………..Full Article: Source

Dubai aims to lead sukuk market

Posted on 21 March 2013 by Laxman  |  Email|Print

The future of Islamic bonds, or sukuk, is bright and Dubai has potential to become the world’s top sukuk market in coming years, a top official of Dubai Financial Market said.
“The outlook for sukuk market is good as its demand is very strong compared to conventional bonds. We are confident about the success of the sukuk market in Dubai,” Essa Kazim, managing director and chief executive of Dubai Financial Market (DFM), told Khaleej Times on the sidelines of the listing ceremony of Emirates airline’s sukuk on Nasdaq Dubai on Wednesday………………………………………..Full Article: Source

Nasdaq Dubai to be largest sukuk market by next year: CEO

Posted on 21 March 2013 by Laxman  |  Email|Print

Nasdaq Dubai will “easily” become the world’s largest sukuk market by next year, acting CEO Hamed Ali said. Billions of dollars worth of sukuk – Sharia compliant Islamic bonds - are expected to be listed on the Nasdaq this year and in 2014, helping to propel it from being the third largest sukuk market globally to the first.
“If we consider the activities expected in the market this year and next year we can easily become number one within the coming one to two years,” Ali said………………………………………..Full Article: Source

Dubai utility DEWA says sees no more sukuk issues before 2015

Posted on 21 March 2013 by Laxman  |  Email|Print

Dubai Electricity and Water Authority (DEWA) is not expecting to issue more Islamic bonds before 2015 if electricity demand growth in the Gulf Arab emirate remains steady, its chief executive said on Wednesday.
“According to cash flow, there will be no additional sukuk or (conventional) bonds (in 2013). I do not think we are going to target sukuk next year, except if (electricity consumption) growth changes to 10 percent or growth targets change,” Saeed Mohammed al-Tayer said………………………………………..Full Article: Source

CBB Sukuk Al-Ijara over subscribed

Posted on 21 March 2013 by Laxman  |  Email|Print

The Central Bank of Bahrain (CBB) announces that the monthly issue of the short-term Islamic leasing bonds, Sukuk Al-Ijara, has been subscribed by 205%. Subscriptions worth BD41m were received for the BD20m issue, which carries a maturity of 182 days.
The expected return on the issue, which begins on 21 March 2013 and matures on 19 September 2013, is 0.95% compared to 1.10% the last issue. The Sukuk Al-Ijara are issued by the CBB on behalf of the Government of the Kingdom of Bahrain………………………………………..Full Article: Source

Emirates airlines lists sukuk worth $1bln

Posted on 21 March 2013 by Laxman  |  Email|Print

Shaikh Ahmad Bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group, rang the bell for listing Emirates airlines sukuk worth $1 billion (Dh3.67 billion) on NASDAQ Dubai on Wednesday morning.
Shaikh Ahmad told media: “Utilising the Islamic financing, sukuk, is to encourage Islamic economy and confirm our support to the initiative of Dubai becoming the world capital of Islamic economy.” “The sukuk issued for multi-purposes, one of these is to finance the upcoming aircraft purchasing deals,” he added………………………………………..Full Article: Source

Abu Dhabi’s Al Hilal Bank to issue sukuk in Q3

Posted on 20 March 2013 by Laxman  |  Email|Print

Abu Dhabi government-owned Al Hilal Bank plans to issue a debut Islamic bond worth $500 million in the third quarter of this year to fund growth and diversify its balance sheet, its chief executive said on Tuesday.
“The sukuk was planned last year but we believe third quarter this year is the right time for our first Islamic bond,” Mohamed Berro told Reuters. “It’s a mix of getting some funding and benchmarking the bank in comparison to its peers on the debt market,” he said, adding that the bank expects to obtain a credit rating in the coming two or three months………………………………………..Full Article: Source

Egypt’s lawmakers approve Sukuk for Islamic bond issues

Posted on 20 March 2013 by Laxman  |  Email|Print

Egyptian lawmakers approved the country’s first sukuk law today, paving the way for the government to take part in a market that hit a record $46 billion of debt sales last year. The law allows the state and its related entities to issue Shariah-compliant debt locally and internationally. Capital gains and coupon payments will be exempt from tax.
Egypt is looking for ways to secure foreign currency as a $4.8 billion loan from the International Monetary Fund remains stalled by political unrest. The country may raise as much as $1 billion by June from sale of its first Islamic bonds, Ahmed El- Naggar, adviser to Finance Minister El-Morsi El-Sayed Hegazi, said last month………………………………………..Full Article: Source

Egypt: Shura Council approves Islamic bond law

Posted on 20 March 2013 by Laxman  |  Email|Print

Parliament approved a law Tuesday allowing the issuance of Islamic bonds, slated to provide the heavily-indebted government with a new form of finance. The Shura Council voted in favor of the law passed by the government at the end of February and sent it to President Mohamed Morsy for final approval.
Finance Minister Morsy Hegazy said last month that Egypt could raise around US$10 billion a year from the Islamic bond market — much more than some analysts expect — but added that it would take at least three months to push through necessary regulations………………………………………..Full Article: Source

Turkiye Finans set for 100 mln lira sukuk issue-bankers

Posted on 20 March 2013 by Laxman  |  Email|Print

Turkish Islamic bank Turkiye Finans is in the final stage of preparing a sukuk, or Islamic bond, issue which is planned to have a volume of around 100 million lira ($55 million), bankers said.
The bank, majority owned by Saudi Arabia’s National Commercial Bank, could make the issue within several weeks if market conditions are right, bankers said. Is Investment is mandated for the issue. ($1 = 1.8129 Turkish liras)……………………………………….Full Article: Source

RAM Ratings reaffirms AA1 rating of TAQA’s sukuk

Posted on 20 March 2013 by Laxman  |  Email|Print

RAM Ratings has reaffirmed the long-term rating of Abu Dhabi National Energy Company PJSC’s (TAQA) Sukuk Murabahah Programme of up to RM3.5 billion in nominal value (2012/2032) at AA1, with a stable outlook.
TAQA is a state-held vehicle of the Government of Abu Dhabi (GoAD), with a mandate to own the majority of the critical power and water (P&W) assets in Abu Dhabi. TAQA is also an international energy and oil and gas (O&G) player………………………………………..Full Article: Source

MARC downgrades Alam Maritim resources’ Sukuk

Posted on 20 March 2013 by Laxman  |  Email|Print

MARC has downgraded its ratings on Alam Maritim Resources’ (Alam Maritim) MYR 500 million Sukuk Ijarah Medium Term Notes (Sukuk Ijarah MTN) and MYR 100 million Murabahah Commercial Papers/Murabahah Medium Term Notes (MCP/MMTN) programmes to A+IS and MARC-2ID /A+ID from AA-IS and MARC-1ID /AA-ID respectively, and revised the outlook of both ratings to stable from negative; the rating action affects MYR 365 million of outstanding notes issued under the rated programmes.
MARC has downgraded its ratings on Alam Maritim Resources’ (Alam Maritim) MYR 500 million Sukuk Ijarah Medium Term Notes (Sukuk Ijarah MTN) and MYR 100 million Murabahah Commercial Papers/Murabahah Medium Term Notes (MCP/MMTN) programmes to A+IS and MARC-2ID /A+ID from AA-IS and MARC-1ID /AA-ID respectively, and revised the outlook of both ratings to stable from negative; the rating action affects MYR 365 million of outstanding notes issued under the rated programmes………………………………………..Full Article: Source

Strong sukuk issuance and performance is anticipated this year

Posted on 19 March 2013 by Laxman  |  Email|Print

Strong investor demand supported by improving liquidity is expected to boost both issuance and performance of sukuk this year, according to rating agency Standard & Poor’s.
“Global issuance expanded for the fourth year in a row in 2012, growing 64 per cent to about $138 billion, and we expect another strong few years,” said Standard & Poor’s credit analyst Paul-Henri Pruvost. While sukuk is still considered an alternative investment, Standard & Poor’s Ratings Services believes it has the potential to grow and join the mainstream fixed income universe………………………………………..Full Article: Source

Egypt: Shura council tackles Sukuk bill

Posted on 19 March 2013 by Laxman  |  Email|Print

The Shura Council under Dr. Ahmed Fahmy agreed on Sunday 17/3/2013 the Sukuk (Islamic bonds) bill. The meeting stirred a new showdown between the Freedom and Justice Party and the Salafi Al Nour Party during the Shura Council’s debates as Al Nour Party insisted on referring Sukuk bill to Al Azhar’s senior ulemas body.
Salafi Al-Nour Party MP and head of its parliamentary bloc Abdullah Badran called for amending the bill’s title to “Islamic Sukuk.”……………………………………….Full Article: Source

Al Hilal Bank to issue Dh1.8bln sukuk in Q2/Q3 of 2013

Posted on 19 March 2013 by Laxman  |  Email|Print

Al Hilal Bank is likely to issue Dh1.8 billion ($500 million) sukuk (Islamic bond) in Q2 or Q3 of 2013, Mohammad Berro, CEO of Al HIlal Bank, told Gulf News. “We will be issuing suku worth $500 million and most probably in Q2 or Q3 of 2013,” said Berro.
He said that the bank, wholly owned by the Abu Dhabi Investment Council, an investment arm of the government of Abu Dhabi, has 11 per cent of the Islamic finance market share in the UAE………………………………………..Full Article: Source

Aramco venture starts bond sale

Posted on 19 March 2013 by Laxman  |  Email|Print

Sadara Chemical Company, a joint venture of Saudi Aramco and Dow Chemical, launched an Islamic bond sale that could raise at least $1.4 billion to finance a large petrochemical complex in the east of the kingdom. The $19.3bn facility, located at Jubail Industrial City in Saudi Arabia’s Eastern Province, will be the world’s largest chemical complex ever built in a single phase.
Sadara may increase the size of the planned sukuk to $2.5bn depending on market demand, it said in a prospectus for the sale, adding if the company raises more than $1.4bn other sources of financing will be adjusted accordingly………………………………………..Full Article: Source

Saudi Electric chooses banks for Sukuk

Posted on 19 March 2013 by Laxman  |  Email|Print

The Gulf region’s largest utility company, Saudi Electricity Co has chosen two banks to schedule meetings with fixed income investors from Europe and North America for possible debt agreements. The banks chosen were Deutsche Bank and HSBC Holdings.
The meetings would be considered as road shows, with the first to be held on March 19 in Los Angeles, CA and would end in London, UK by March 25 of this year. After these road shows, a dollar denominated bond issue would then follow depending on market conditions………………………………………..Full Article: Source

Saudi Aramco, Dow petchem venture launches Islamic bond offering

Posted on 18 March 2013 by Laxman  |  Email|Print

Sadara Chemical Company, a joint venture between Saudi Aramco and Dow Chemical , said it launched a local currency Islamic bond to help fund the construction of a $20 billion petrochemical complex in the east of the kingdom.
The facility, located at Jubail Industrial City in Saudi Arabia’s Eastern Province, will be the world’s largest chemical complex ever built in a single phase. Size and pricing of the sukuk, which is only available to Saudi investors, will be determined once roadshows have taken place. The sukuk has a 16-year lifespan, the statement said………………………………………..Full Article: Source

Saudi’s Bahri mulls sukuk to fund acquisition

Posted on 18 March 2013 by Laxman  |  Email|Print

National Shipping Co of Saudi Arabia (Bahri) is considering a debut Islamic bond issue to help refinance debt taken on for its $1.3bn acquisition of Saudi Aramco’s marine unit last year, three sources said on Sunday.
The purchase of Vela’s fleet, which cost 4.88 billion riyals ($1.3 billion), made Bahri the world’s fourth-largest owner of very large crude carriers, or VLCCs, with part of the agreement making Bahri the sole provider of VLCC crude oil shipping services to Aramco………………………………………..Full Article: Source

Strong sukuk issuance and performance is anticipated this year

Posted on 18 March 2013 by Laxman  |  Email|Print

Strong investor demand supported by improving liquidity is expected to boost both issuance and performance of sukuk this year, according to rating agency Standard & Poor’s. “Global issuance expanded for the fourth year in a row in 2012, growing 64 per cent to about $138 billion, and we expect another strong few years,” said Standard & Poor’s credit analyst Paul-Henri Pruvost.
While sukuk is still considered an alternative investment, Standard & Poor’s Ratings Services believes it has the potential to grow and join the mainstream fixed income universe………………………………………..Full Article: Source

SEC picks banks for sukuk sale

Posted on 18 March 2013 by Laxman  |  Email|Print

Saudi Electricity Co. (SEC), the Gulf’s largest utility, has picked two banks to arrange meetings with fixed income investors in Europe and the United States ahead of a possible debt issue, a statement from the lead managers said.
State-owned SEC has chosen Deutsche Bank and HSBC Holdings to arrange the roadshows, which begin on March 19 in Los Angeles and conclude in London on March 25. A dollar-denominated bond issue may follow, subject to market conditions, the statement added………………………………………..Full Article: Source

Efforts to bolster sukuk market will continue

Posted on 18 March 2013 by Laxman  |  Email|Print

Malaysia has done well in developing its Islamic capital market and will seek to bolster the sector further. In its annual report 2012, the Securities Commission (SC) said efforts to further innovate and broaden the sukuk market will continue via the introduction of a frame-work for the issuance of AgroSukuk for companies in the agriculture sector.
To improve the availability of fund-raising avenues for agriculture activities and agro-based in-dustries, the government has also proposed in the 2013 Budget that expenses for the issuance of AgroSukuk will be entitled to a double deduction for a period of three years, effective from assessment year 2013 to 2015………………………………………..Full Article: Source

Govt weighs spl bonds to pay off BPC debts

Posted on 18 March 2013 by Laxman  |  Email|Print

The government mulls floating of special bonds in the fiscal year (FY) 2012-13 to help the state-owned Bangladesh Petroleum Corporation (BPC) pay off its overdue bank loans, a top official said.
“We intend to settle the BPC’s subsidy-related loans with the state-owned commercial banks (SoBs) by issuing the special bonds in the FY ‘13,” the Ministry of Finance (MoF) stated in its memorandum of economic and financial policies submitted to the International Monetary Fund (IMF) recently………………………………………..Full Article: Source

Senegal seeks to become West African hub for Islamic finance

Posted on 15 March 2013 by Laxman  |  Email|Print

Senegal is trying to position itself as a center for Islamic finance in West Africa, where about 52 percent of the population is Muslim, as the government pursues changes that will enable the first sales of sukuk.
Senegal still needs to adjust its policies to be able to sell debt that complies with Islam’s ban on interest after postponing a plan last year to sell such bonds, said Mouhamadou Lamine Mbacke, managing director of the African Institute of Islamic Finance, a Dakar-based company that advises governments and financial institutions and is working with the authorities on the rule changes. About 95 percent of the nation’s population of 12.7 million is Muslim……………………………………Full Article: Source

Dubai Islamic Bank announces successful pricing of sukuk in 2013

Posted on 15 March 2013 by Laxman  |  Email|Print

Dubai Islamic Bank (DIB) announced Thursday the successful pricing of a perpetual Islamic bond (sukuk) worth 1 billion U.S. dollars. The tier-1 Islamic bond was priced with a profit rate at 6.25 percent.
The launch of the first sukuk issued this year attracted “more than 14 billion dollars on the back of demand from a diverse investor base,” said DIB in a statement to the local bourse Dubai Financial Market……………………………………Full Article: Source

Dubai: $1bln sukuk launched

Posted on 15 March 2013 by Laxman  |  Email|Print

Dubai Islamic Bank (DIB), the largest Sharia-compliant lender in the UAE by assets, launched a $1 billion hybrid sukuk. The perpetual sukuk, which is aimed at shoring up its core or Tier 1 capital, launched at a profit rate of 6.25 per cent, in line with final guidance released earlier in the day.
The final guidance was substantially tighter than initial price talk of 7pc, after arranging banks said order books totalled $14bn, indicating massive demand for the deal. HSBC Holdings, Standard Chartered, National Bank of Abu Dhabi, Emirates NBD and DIB itself are mandated lead arrangers for the deal……………………………………Full Article: Source

MAS finances last A380 with Islamic bond facility

Posted on 15 March 2013 by Laxman  |  Email|Print

Malaysia Airlines closed financing on its final Airbus A380 aircraft using the proceeds from an existing Islamic bond facility. The aircraft (MSN 114) is Airbus’ 100th A380 delivery.
The Bai Bithaman Ajil Islamic financing arrangement was established in November 2012 through Turus Pesawat, a special purpose company wholly-owned by the Malaysian ministry of finance. It raised up to ringgit (M$) 5.3 billion ($1.73 billion) for the financing of eight Airbus aircraft, including six A380-800s, one A330-200F and one A330-300……………………………………Full Article: Source

UAE’s Dana Gas Sukuk restructuring vote postponed to March 21

Posted on 15 March 2013 by Laxman  |  Email|Print

Dana Gas, the Abu Dhabi-listed energy firm, said a shareholder meeting to vote on the restructuring of the $920 million sukuk did not met the required quorum. A new meeting has been scheduled for March 21, the company said in a filing to the Abu Dhabi stock exchange on Thursday.
Dana became the first company in UAE to miss repayment of a maturing bond on October 31 but agreed new terms with a creditor committee representing bondholders, which included investment firms Ashmore Group and BlackRock, a week later……………………………………Full Article: Source

Malaysia: Efforts to bolster sukuk market will continue

Posted on 15 March 2013 by Laxman  |  Email|Print

Malaysia has done well in developing its Islamic capital market and will seek to bolster the sector further. In its annual report 2012, the Securities Commission (SC) said efforts to further innovate and broaden the sukuk market will continue via the introduction of a frame-work for the issuance of AgroSukuk for companies in the agriculture sector.
To improve the availability of fund-raising avenues for agriculture activities and agro-based in-dustries, the government has also proposed in the 2013 Budget that expenses for the issuance of AgroSukuk will be entitled to a double deduction for a period of three years, effective from assessment year 2013 to 2015. …………………………………..Full Article: Source

Malaysia: Exim Bank targets RM3bln sukuk for global market

Posted on 15 March 2013 by Laxman  |  Email|Print

Government-owned Export-Import Bank of Malaysia Bhd (Exim Bank) is looking at the potential of arranging a US$1 billion (RM3.1 billion) sukuk to be made available in the global market in its effort to help local companies do business overseas.
Its managing director/CEO Adissadikin Ali said the bank aimed to raise funding based on three objectives: sources of fund should match users of fund in terms of tenure, foreign exchange neutral and the right pricing……………………………………Full Article: Source

PT Indosat’s Sukuks ratings affirmed at idAA+

Posted on 15 March 2013 by Laxman  |  Email|Print

PEFINDO affirmed its ratings of idAA+ for PT Indosat (ISAT) and its bonds V/2007, bonds VI/2008, bonds VII/2009, and bonds VIII/2012, and idAA+(sy) for its Sukuk Ijarah II/2007, Sukuk Ijarah III/2008, Sukuk Ijarah IV/2009, and Sukuk Ijarah V/2012.
The outlook of the rating is Stable. The ratings reflect the strong support from the major shareholder, the Company’s stable market position, and its stable operating performance. However, the ratings are offset by the Company’s aggressive capital structure and intense competition within the telecommunication industry…………………………………..Full Article: Source

Oman to issue 200 mln rials of bonds, sukuk -c.bank

Posted on 14 March 2013 by Laxman  |  Email|Print

Oman plans to issue a total of about 200 million rials ($520 million) of conventional bonds and sukuk in line with its budget financing needs, central bank chief Hamood Sangour al-Zadjali said on Wednesday.
He did not specify the timing or other details, beyond saying that the sukuk, denominated in rials, were likely to be issued towards the end of 2013 or at the start of next year. It would be Oman’s first sovereign sukuk issue, as the country is now launching an Islamic finance industry…………………………………….Full Article: Source

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