Opalesque Islamic Finance Briefing » Bonds (Sukuk)

MMC gets nod for RM470mln sukuk wakalah

Laxman — Wed, 15 May 2013 00:03:36 +0000

MMC Corp Bhd has received nod from the Securities Commission (SC) to issue up to RM470 million of sukuk wakalah to part-finance the acquisition of operations and maintenance business of Hicom Power Sdn Bhd, for working capital and to help defray any expenses.
The approval was received on Monday via MMC’s unit Tanjung Bin O&M Bhd. MMC has within one year to issue the sukuk wakalah, in which each tranche will have a tenure of more than one year and up to 16 years from the date of issuance…………………………………..Full Article: Source

CBB’s monthly Sukuk Al-Ijara oversubscribed by 220pct

Laxman — Wed, 15 May 2013 00:03:24 +0000

The Central Bank of Bahrain (CBB) announced today that the monthly issue of the short-term Islamic leasing bonds, Sukuk Al-Ijara, has been oversubscribed by 220%.
Subscriptions worth BD 43.9 million received for the BD 20 million issue carries a maturity of 182 days. The expected return on the issue, which begins on 16 May 2013 and matures on 14 November 2013, is 0.85% equivalent to 0.85% for the previous issue on 18th April 2013…………………………………..Full Article: Source

Egypt: New sukuk projects awaiting bids

Laxman — Tue, 14 May 2013 01:11:55 +0000

The Egyptian government expects $10bn to $15bn annual investments from projects financed by sukuk said Ahmed El Naggar, an Islamic finance advisor to the minister of finance.
“We expect to receive the first bids for projects using sukuk after the holy month of Ramadan in July,” he said during a conference on the practical application of sukuk, jointly organised by the Ministry of Finance and the Islamic Development Bank (IDB)………………………………………..Full Article: Source

Puncak Niaga seeks approval for warrants, sukuk

Laxman — Tue, 14 May 2013 01:11:06 +0000

Puncak Niaga Holdings Bhd is seeking shareholders’ approval for its proposed issuance of 40.91 million free warrants on the basis of one free warrant for every ten shares and a five-year redeemable convertible secured sukuk ijarah of up to RM165mil in nominal value during its EGM set on May 28.
Meanwhile, the announcement of the entitlement date for the proposed free warrants and issuance of the convertible sukuk ijarah were tentatively set in mid-June and mid-September respectively………………………………………..Full Article: Source

Khazanah gearing for global sukuk expansion

Laxman — Tue, 14 May 2013 01:07:46 +0000

State investment company Khazanah Nasional Bhd is gearing for more innovative investment options to follow its landmark portfolios in the sukuk marketplace. Khazanah has made it its mission to succeed in dealing with the challenging sukuk market, said Khazanah CFO Mohd Izani Ghani.
It plans to publish a coffee table book to share its success stories thus far. “This will be about the successes and challenges faced by the industry players in the Islamic banking and finance sector,” he said at a public lecture on Islamic finance in Kuala Lumpur last Friday. The lecture was organised by Institute of Islamic Banking and Finance, an instutite of the International Islamic University Malaysia………………………………………..Full Article: Source

Sukuk’s success is a matter of maturity

Laxman — Tue, 14 May 2013 01:06:15 +0000

The suggestion can easily be made these days that sukuk as a borrowing and investing instrument is well and truly coming of age. Certainly, there are many voices denoting that the Islamic variant on conventional fixed-income is establishing itself in the financial marketplace, tapping not only into the supposed relative safe-haven appeal of bond-related assets but also the regional and demographic drivers pertaining to the Sharia-compliant counterpart.
Notwithstanding that benchmark US Treasuries are beset by the vulnerability of the Fed’s quantitative easing strategy, there is a story behind the sukuk phenomenon that has gained traction………………………………………..Full Article: Source

RAM Ratings ups Menara ABS’s Sukuk outlook to stable

Laxman — Tue, 14 May 2013 01:05:57 +0000

RAM Rating Services Bhd has reaffirmed the ratings of Menara ABS Bhd’s Sukuk and revises the outlook on Tranche A from negative to stable.
The ratings agency said on Monday it had reaffirmed the long-term ratings of its Tranche A1, Tranche A2, Tranche A3, Tranche A4 (Tranche A Sukuk) and Tranche B Sukuk Ijarah at AAA, AA2, A1, A2 and AAA, respectively………………………………………..Full Article: Source

Malaysian bond yields likely to spike

Laxman — Tue, 14 May 2013 01:05:45 +0000

Malaysia’s bond yields, which have been near record low of late, could see a slight spike in the second half of this year, according to analysts.
They reckoned the improvement in the global economy would trigger some inflationary pressure resulting in possible monetary intervention that could push bond yields higher………………………………………..Full Article: Source

Dubai Investments to complete $300bln sukuk soon

Laxman — Tue, 14 May 2013 01:05:27 +0000

Dubai Investments Company, the quoted investment firm whose portfolio includes the Dubai Investments Park and private equity investor Masharie, has said that the $300m (AED: 1.1bn) sukuk it is planning to raise should be finalised “in the coming quarter”.
The firm’s CEO, Khalid Kalban, said that it expected to finalise the deal after announcing a 97% increase in first qoarter profits to $29.1m (AED: 107m). Revenues also increased by 17% to $176.7m (AED: 649m), while the firm’s net worth grew to $2.4bn (AED: 8.7bn)………………………………………..Full Article: Source

Malaysia: Exim Bank plans non-ringgit sukuk this year

Laxman — Fri, 10 May 2013 00:26:42 +0000

Export-Import Bank of Malaysia Bhd (Exim Bank) plans to sell non-ringgit denominated Islamic bonds, or sukuk, in global markets this year to help fund future growth, its managing director Datuk Adissadikin Ali said. He, however, declined to say how much will be issued, except that it will be “significant”.
“We plan to issue the sukuk this year as the timing is right,” he told pressmen after a collaboration signing ceremony between Exim Bank and Indonesia’s PT Senagan Energi. The sale would be Exim Bank’s second foray into the international debt arena after the US$1.5 billion (RM4.5billion) multicurrency medium term note programme (MTN) issued last year…………………………………….Full Article: Source

Malaysia sukuk attracts Manulife, Asian Islamic

Laxman — Fri, 10 May 2013 00:26:23 +0000

Malaysia’s sukuk are luring Manulife Asset Management Services Bhd and Asian Islamic Investment Management Bhd now that the distraction of elections is over.
Manulife plans to increase holdings on optimism that Prime Minister Datuk Seri Najib Razak will honour a promise to cut the budget deficit after his re-election, chief investment officer Jason Chong said in an interview in Kuala Lumpur…………………………………….Full Article: Source

Jeddah’s IDB unit launches sovereign Sukuk insurance

Laxman — Fri, 10 May 2013 00:26:08 +0000

The insurance product is designed to boost the credit ratings of sukuk for sovereign issuers. A unit of the Jeddah-based Islamic Development Bank, a multilateral lending institution, has launched an insurance product designed to boost the credit ratings of sukuk (Islamic bonds) for sovereign issuers.
The Islamic Corporation for the Insurance of Investment & Export Credit (ICIEC), rated Aa3 by Moody’s, hopes its insurance policy can help issuers tap into strong investor demand for investment-grade sukuk…………………………………….Full Article: Source

Egypt: Sukuk law approved, government to hold two bidding rounds for projects

Laxman — Fri, 10 May 2013 00:25:51 +0000

The Sukuk Law has been approved by President Mohamed Morsi and was published in the official gazette on Wednesday. The government is now set to hold two bidding rounds for sukuk projects, the first to be held in US dollars and the second in Egyptian pounds.
Tarek Al-Ghamrawy, an economist at the Egyptian Centre for Economic Studies, said he had looked at some articles of the law and had noticed two positive points…………………………………….Full Article: Source

RAM Ratings reaffirms TNB’s AAA sukuk rating

Laxman — Fri, 10 May 2013 00:25:37 +0000

RAM Ratings has reaffirmed the AAA long-term rating of Tenaga Nasional Berhad’s (”TNB” or “the Group”) USD500 million equivalent Murabahah Medium-Term Notes Programme (2005/2025); the long-term rating has a stable outlook.
Based on RAM’s methodology on government-linked entities, there is a very high likelihood of extraordinary government support for TNB in the event of financial distress, given the Group’s strategic role as the national electricity company…………………………………….Full Article: Source

Saudi dairy firm Almarai eyes $500 mln sukuk sale - CFO

Laxman — Thu, 09 May 2013 01:58:22 +0000

Saudi Arabian dairy producer Almarai Co plans to raise at least $500 million from the sale of a debut international Islamic bond to help to finance ambitious growth plans, a senior executive said on Wednesday. The company, which is the Gulf’s largest dairy firm, has previously sold two Islamic bonds, or sukuk, in local currency, open only to Saudi institutional investors.
“We’re looking at how to get financing internationally. We’re targeting at least $500 million and this should be out in the next 12 months,” Paul Louis Gay, Almarai’s chief financial officer, told reporters………………………………………..Full Article: Source

First Saudi Sukuk issuance in Malaysia by Al Bayan Group

Laxman — Thu, 09 May 2013 01:58:07 +0000

Al Bayan Group Holding Company, a Saudi-based conglomerate, recently issued a MYR 200 million Sukuk out of its inaugural MYR 1.0 billion Sukuk Wakalah Programme – the first Malaysian Ringgit Sukuk Programme to be established by a Saudi corporate issuer and the first issuance by a Saudi corporate issuer of Malaysian Ringgit denominated Sukuk in the Malaysian debt capital market to date.
The landmark Sukuk was issued via Al Bayan’s special-purpose vehicle incorporated in Malaysia, ABHC Sukuk Berhad. Proceeds from the issuance, with tenure of three years, will be used by the Group primarily for repayment of existing debt obligations and expanding the Group’s core businesses as well as working capital requirements………………………………………..Full Article: Source

2012 ‘was a banner year for sukuk in Kingdom’

Laxman — Thu, 09 May 2013 01:57:53 +0000

Sukuk has become a global trend, with countries increasingly finding it instrumental to develop their economies. This was among the conclusions stressed at the Eighth Euromoney Conference that ended.
The conference,which was opened by Finance Minister Ibrahim Al-Assaf, was attended by 1,200 senior financiers, business leaders and government officials. Housing Minister Shwaish Al-Duwaihy, Economy and Planning Minister Muhammed Al-Jasser and Abdullatif Al-Zayani also addressed the delegates at the inaugural ceremony………………………………………..Full Article: Source

Goldman said to earn $500 mln arranging Malaysia bond

Laxman — Thu, 09 May 2013 01:57:31 +0000

Goldman Sachs Group Inc. (GS) made about $500 million arranging three bond sales in the past year for 1Malaysia Development Bhd., the state investment fund led by Prime Minister Najib Razak, said a person familiar with the matter.
The total is almost as much as Malaysia, Southeast Asia’s third-largest economy, pays each month on its debt and compares with Goldman (GS)’s record $694 million of global bond underwriting fees in the first quarter, according to data compiled by Bloomberg. Goldman, the securities firm with the fastest-growing investment-banking fees, arranged $6.5 billion of bond sales for the fund………………………………………..Full Article: Source

Record Sukuk seen on Indonesia $92 bln plan: Islamic finance

Laxman — Wed, 08 May 2013 00:23:55 +0000

Indonesian corporate sukuk sales are off to their best ever start and the top underwriter predicts a full-year record as $92 billion of state-backed development projects buoy issuance.
Bank Muamalat Indonesia and Adira Dinamika Multi Finance were among issuers of Rp 1.5 trillion ($154 million) of securities, Financial Services Authority data show. That compares with Rp 1.9 trillion for the whole of 2012 and a record Rp 2.3 trillion in 2008. The market is still just a fraction of Malaysia’s, where companies sold 95.8 billion ringgit ($32 billion) of sukuk last year………………………………………..Full Article: Source

Saudi’s SABIC says to issue Sukuk for projects

Laxman — Wed, 08 May 2013 00:23:38 +0000

Saudi Basic Industries Corp (SABIC), the world’s biggest petrochemicals group, will issue a Sukuk late this year or next year to fund coming projects, a senior company official said on Tuesday.
SABIC has 40 billion riyals ($10.7 billion) worth of projects over the next few years and the company prefers to fund these with sukuk, although “not at any cost”, Chief Financial Officer Mutlaq al-Morished said on the sidelines of a financial conference………………………………………..Full Article: Source

HSBC sees 2013 Sukuk sales doubling to $3 bln: Turkey Credit

Laxman — Wed, 08 May 2013 00:23:22 +0000

Islamic bond sales in Turkey may double to $3 billion this year as companies join the government in accessing Shariah-compliant investors, according to HSBC Holdings Plc (HSBA), the world’s biggest underwriter of sukuk.
Sales reached about $1 billion this year, led by banks including Turkiye Finans Katilim Bankasi AS, according to data compiled by Bloomberg. The yield on March 2018 notes, which Turkey sold for the first time in September, fell six basis points this year to 2.68 percent, seven basis points below the global average, the data show………………………………………..Full Article: Source

TM has cash to settle RM2bln sukuk, will not issue more bonds for now

Laxman — Wed, 08 May 2013 00:23:04 +0000

Telekom Malaysia Bhd (TM) has sufficient cash to settle its RM2bil sukuk ijarah expiring at the end of the year and remains committed to return RM700mil, or up to 90% of normalised net profits, to its shareholders.
“We have adequate bank balances to pay the sukuk and there is no need to issue more bonds at the moment,” group chief financial officer Datuk Bazlan Osman said after the company’s AGM. As at Dec 31, 2012, TM had cash and bank balances of RM3.73bil while total borrowings stood at RM7.14bil………………………………………..Full Article: Source

Dubai says looking at alternate plan for debt repayment

Laxman — Wed, 08 May 2013 00:22:52 +0000

Dubai may issue another sovereign bond this year and is looking at alternate means to repay its debt if asset sales don’t materialise, a top official said on Tuesday.
“The market is right, the price is right, then why not?” Sheikh Ahmed bin Saeed al-Maktoum, a close advisor and uncle to Dubai’s ruler, said when asked whether the emirate might make a second sovereign debt issue this year………………………………………..Full Article: Source

Sabic may seek to tap debt market as soon as this year, CFO says

Laxman — Wed, 08 May 2013 00:22:37 +0000

Saudi Basic Industries Corp. (SABIC) may tap the debt market as early as this year as the world’s biggest petrochemicals maker by market value seeks financing for projects amid borrowing costs near record lows.
The state-controlled company is implementing projects valued at 40 billion riyals ($11 billion) over the next few years, Chief Financial Officer Mutlaq al-Morished said in Riyadh today. “We will tap the market sometime late this year or early next year,” he said. It’s too early to comment on the size of the bond sale, which Sabic would prefer to be Islamic, al- Morished said………………………………………..Full Article: Source

Bonds, sukuk among ‘most attractive’ ways of funding, says Seetharaman

Laxman — Tue, 07 May 2013 01:37:56 +0000

Bonds and sukuks are among the “most attractive” ways of funding more than $45bn projects planned in Qatar this year and $140bn projects planned in the upcoming years, Doha Bank Group CEO Dr R Seetharaman has said.
He said in 2012 Qatar issued sukuk worth $4bn and earlier, in 2011, Qatar came out with QR50bn bonds for local banks. “QNB recently came up with a $1bn bond issue for a tenure of seven years. In March 2013, Qatar’s Central Bank issued QR1bn of local currency sukuk and QR3bn of local currency conventional bonds.”……………………………………….Full Article: Source

Türkiye Finans’ $500 mln sukuk sale lures investors

Laxman — Tue, 07 May 2013 01:37:26 +0000

Turkish Islamic bank Türkiye Finans issued a $500 million five-year Islamic bond, also known as a sukuk, in a bid to take its share of the soaring investor appetite for alternative financial instruments as well as Turkey’s ambitious plans to boost its Islamic finance offers.
The sale, which is bank’s first and Turkey’s second largest after the Treasury’s issuance of $1.5 billion worth of sukuks last September, attracted a massive order from 95 global investors at $1.9 billion, which is 3.8-fold the sale. The sale carried a 3.95 percent yield………………………………………..Full Article: Source

Batu Kawan proposes RM500mln Sukuk programme

Laxman — Tue, 07 May 2013 01:37:10 +0000

Batu Kawan Bhd has proposed to raise up to RM500mil from an Islamic medium-term notes Sukuk programme. It said on Monday the Securities Commission had approved the Sukuk programme which would have a tenure of 10 years.
“Proceeds from the Sukuk programme will be utilised by the company to finance its Shariah-compliant investments, general corporate purposes (including operational and capital expenditure requirements) and working capital needs,” it said………………………………………..Full Article: Source

Positive response to Al Bayan Group’s sukuk issuance in Malaysia anticipated

Laxman — Tue, 07 May 2013 01:36:57 +0000

Kenanga Investment Bank (KIBB) and its Saudi partner Wasatah Capital have identified an opportunity for Saudi companies to create a presence in the Malaysian sukuk market following Al Bayan Group Holding Company’s 200-million Malaysian ringgit (MR) sukuk issuance.
The RM200-million sukuk issuance is the first tranche out of an inaugural RM1.0 billion Sukuk Wakalah Program. It is also the first Malaysian Ringgit Sukuk Program to be established and issued by a Saudi corporate issuer to date in Malaysia………………………………………..Full Article: Source

Dana Gas tops Gulf sukuk as debt deal gets approval

Laxman — Tue, 07 May 2013 01:36:42 +0000

Dana Gas’ Islamic bonds rallied last week, sending the yield down eight times more than the Arabian Gulf average, after the UAE-based fuel producer agreed on debt-refinancing terms.
The yield on the 7.5 per cent notes, originally due in October 2012, tumbled 40 basis points in the five-day period to 8.05 per cent, data compiled by Bloomberg show. That compares with a five basis-point drop for companies in the Gulf Cooperation Council (GCC) to 3.7 per cent, according to the HSBC/Nasdaq Dubai GCC Corporate US Dollar Sukuk Index. Dana Gas’ shares surged 7.7 per cent on Sunday, the most since December………………………………………..Full Article: Source

QCB chief to address role sukuk can play in managing liquidity

Laxman — Tue, 07 May 2013 01:36:24 +0000

HE the QCB Governor, Sheikh Abdullah bin Saoud al-Thani, in his capacity as Chairman of the Board of Islamic Financial Services Board (IFSB) and Chairman of the Governing Board of International Islamic Liquidity Management Corporation (IILM), will give a keynote address at the forthcoming London Sukuk Summit on the standards issued by the IFSB to facilitate the regulation and supervision of the Islamic Financial Services industry.
The event will be held at the Jumeirah Carlton Hotel, London on June 12 and 13. He will also address the role that sukuk can play in facilitating the liquidity management for institutions that offer Islamic financial services. In providing this perspective, Sheikh Abdullah will draw on his capacity as Governor of the Qatar Central Bank and Chairman of Qatar Financial Centre (QFC)………………………………………..Full Article: Source

RAM assigns final ratings to Al-’Aqar Capital’s proposed sukuk, sees stable outlook

Laxman — Tue, 07 May 2013 01:36:08 +0000

RAM Rating Services Bhd has assigned final ratings to Al-’Aqar Capital Sdn Bhd’s proposed Issue 1 to be issued under its RM1bil Sukuk Ijarah programme. In a statement, RAM Ratings said it had assigned AAA rating with a stable outlook for the RM272mil Class A Sukuk Ijarah and AA2 with a stable outlook for the RM55mil Class B Sukuk Ijarah. The RM328mil Class C Sukuk Ijarah, however, was not rated, it said.
Al-’Aqar Cap is a wholly owned special-purpose vehicle of Al-’Aqar Healthcare REIT, which, in turn, is majority-held by KPJ Healthcare Bhd via a 49% indirect stake………………………………………..Full Article: Source

Finance ministry: Sukuk to prove successful in Egypt

Laxman — Fri, 03 May 2013 01:34:29 +0000

With the Sukuk bill unanimously endorsed by the Shura Council, the Finance Ministry hopes this would give investments a shot in the arm.
The Sharia-compliant bonds will help achieving a quantum leap in investments, thus contributing to increasing growth and employment rates, said Advisor to the Finance Ministry in charge of the Sukuk file Ahmed el-Naggar. He noted that projects can very well be established using Sukuk………………………………………..Full Article: Source

Egypt Islamic bonds could attract $15 bln annually

Laxman — Fri, 03 May 2013 01:34:15 +0000

Sovereign Islamic bonds, or sukuk, could attract $15 billion in investments to Egypt annually from domestic and foreign investors, according to statements made by an advisor to the finance minister to the state-run MENA news agency.
Ahmed El-Naggar, who manages affairs related to Islamic bonds at the finance ministry, expects the government issue of Sharia compliant debt instruments to spur Egypt’s economic growth and employment figures………………………………………..Full Article: Source

Garuda issues $630mln worth of Shariah bonds

Laxman — Fri, 03 May 2013 01:34:02 +0000

PT Garuda Indonesia’s debut $630-million Islamic loan, which follows sukuk by Emirates Airlines and Malaysian Airline System Bhd., is a test that may pave the way for more Shariah funding, the carrier’s chief executive said.
The state-owned company announced an agreement last week with Kuwait’s Aviation Lease and Finance Company KSCC, which will finance two Boeing 777-300 Extended Range aircraft, CEO Emirsyah Satar said in an April 26 interview from Jakarta. Pricing for the 12-year facility was “competitive” and it will help Garuda gain access to a wider pool of investors, he said, adding that it may consider issuing sukuk in the future………………………………………..Full Article: Source

Fitch assigns Turkiye Finans Sukuk issue final ‘BBB’ rating

Laxman — Fri, 03 May 2013 01:33:43 +0000

Fitch Ratings has assigned Turkiye Finans Katilim Bankasi A.S.’s (Turkiye Finans) Sukuk issue a final rating of ‘BBB’. KEY RATING DRIVERS The ‘BBB’ rating assigned to the Sukuk is driven solely by Turkiye Finans’ Long-term foreign currency Issuer Default Rating (IDR) of ‘BBB’ as the Sukuk structure is viewed as an originator-backed/asset-based structure.
According to Fitch’s criteria, the Sukuk rating is directly linked to Turkiye Finans’ Long-term IDR. By assigning a rating to the issue, Fitch does not express an opinion on the Sukuk structure’s compliance with Shariah principles or whether the relevant transaction documents are enforceable under any applicable law, including, without limitation, English and Turkish law………………………………………..Full Article: Source

QAR8bln worth sukuk issued in Q1: QCB Governor

Laxman — Fri, 03 May 2013 01:33:30 +0000

H E Sheikh Abdullah bin Saoud Al Thani, Governor of Qatar Central Bank ( QCB ), yesterday said that Islamic banks in Qatar issued sukuk worth QR8bn by the end of the first quarter of 2013. The QCB , on behalf of the government, has issued sukuk worth QR39bn to help manage the liquidity of Islamic financial institutions to comply with Basel III norms.
The sukuk issuances are likely to grow by 20 percent annually driven by high demand for Shariah- compliant products and finances globally. Sheikh Abdullah, in his opening address at the International Conference on Sukuk, said the total volume of investments of banks operating in Qatar in Islamic sukuk or bonds reached QR47bn for the same period……………………………………….Full Article: Source

Goldman-arranged bond sale stings Najib before Malaysia election

Laxman — Fri, 03 May 2013 01:33:01 +0000

Malaysian Prime Minister Najib Razak is facing calls before a weekend election to justify a $3 billion bond placement by the sovereign-wealth fund he leads, with opponents saying the deal was unnecessary and mispriced.
Goldman (GS) Sachs Group Inc. arranged the March 19 sale of 10- year debt by 1Malaysia Development Bhd., also known as 1MDB, and the notes were priced to yield 4.4 percent, 141 basis points more than sovereign Islamic dollar bonds due July 2021 were yielding at that time………………………………………..Full Article: Source

Qatar Islamic Bank rules out 2013 sukuk issues

Laxman — Thu, 02 May 2013 00:54:47 +0000

Qatar Islamic Bank (QIB), the Gulf state’s largest sharia-compliant lender by assets, is not expecting to issue more Islamic bonds before 2014, its chief executive said on Wednesday. “I don’t think it will be needed; there seems to be enough liquidity currently,” Bassel Gamal told reporters at a conference in the Qatari capital.
QIB, whose biggest shareholder is the country’s sovereign wealth fund, the Qatar Investment Authority, last tapped the market with a $750 million five-year sukuk in October as part of its $1.5 billion sukuk program………………………………………..Full Article: Source

Tatarstan prepares Sukuk, to discuss Islamic banking with Moscow

Laxman — Thu, 02 May 2013 00:54:30 +0000

The Russian republic of Tatarstan is preparing to make Russia’s first issue of Islamic bonds and will discuss ways to facilitate the growth of Islamic finance with authorities in Moscow, Tatarstan’s president said on Wednesday.
“We are getting ready - it all depends on the financial market,” Rustam Minnikhanov, speaking through a translator, said in an interview while on a visit to the United Arab Emirates, where he is seeking investment in Tatarstan………………………………………..Full Article: Source

Size of Sukuk issued by Islamic banks in Qatar amounts to approximately QR.8 bln

Laxman — Thu, 02 May 2013 00:54:14 +0000

HE Sheikh Abdullah bin Saoud al Thani, the Governor of Qatar Central Bank (QCB) has announced that the size of sukuk issued by the Islamic banks in Qatar amounted to approximately QR.8 billion at the end of the first quarter of this year, whereas the total volume of investments of the banks operating in Qatar in Islamic sukuk or bonds amounted to QR. 47 billion in the same date.
The QCB governor said the QCB on behalf of the Government of the State of Qatar issued Islamic bonds by about QR.39 billion in order to enhance the liquidity of the financial centers of the Islamic banks, in line with the requirements of the “Baza 3″, and out of the firm belief of the importance of Islamic financial instruments………………………………………..Full Article: Source

Egypt Islamic bonds could attract $15 bln annually

Laxman — Thu, 02 May 2013 00:53:52 +0000

Egypt’s treasury hails Al-Azhar’s nod to Islamic bonds bill

Laxman — Thu, 02 May 2013 00:53:39 +0000

Egypt’s Finance Ministry on Wednesday hailed the consent of Al-Azhar, the country’s highest Islamic reference, to the Islamic bonds (sukuk) draft law.
“The final unanimous approval of the sukuk bill among various members of the Shura Council (the upper house) and Al- Azhar represents a strong push to this new investment finance system in the country,” official news agency MENA quoted Ahmed al- Naggar, the finance minister’s adviser, as saying………………………………………..Full Article: Source

Sukuk: Heading for the mainstream

Laxman — Tue, 30 Apr 2013 01:35:52 +0000

With more and more sovereigns and corporates looking to raise money through sukuk - in response to strong investor demand - Islamic finance is becoming increasingly mainstream. Are regional asset managers well positioned to take advantage? The growth of the market for sukuk - Islamic bonds - over the last few years has been staggering and experts predict that 2013 will continue that trend, particularly in the Gulf Co-Operation Council (GCC) countries and wider MENA region.
Investors within the emerging markets space as well as internationally have had a taster and are hungry for more sovereign as well as corporate issues. Worldwide issuance was $138 billion in 2012, its fourth consecutive year of growth, and up 64% on 2011………………………………………..Full Article: Source

Gulf banks, investors involved in flood of Turkish issues

Laxman — Tue, 30 Apr 2013 01:35:37 +0000

A $500 million sukuk from Turkiye Finans this week was just the latest in a flood of international debt issues from Turkey. But the identity of the arranging banks, and the investors who bought the issue, pointed to a shift in capital markets.
Of the four banks arranging the deal for Turkiye Finans, an Islamic bank majority-owned by Saudi Arabia’s National Commercial Bank, two were based in the Gulf: NCB Capital and Dubai’s Noor Islamic Bank………………………………………..Full Article: Source

Dana Gas shareholders and Sukukholders approve Sukuk refinancing

Laxman — Tue, 30 Apr 2013 01:35:22 +0000

Dana Gas, the Middle East’s leading private sector regional natural gas company, announced that sukukholders overwhelmingly voted to approve the refinancing of the $1bn Trust Certificates (Sukuk-al-Mudarabah) issued by Dana Gas Sukuk Limited.
At the Company’s Extraordinary General Assembly Meeting (EGM) which was chaired by H.H. Sheikh Ahmed bin Sultan Al Qasimi, Honorary Chairman, shareholders present unanimously voted in favour of the transaction………………………………………..Full Article: Source

Albaraka Turk to raise $200mln through sukuk

Laxman — Tue, 30 Apr 2013 01:35:08 +0000

Albaraka Turk Participation Bank (ABTP), which is part of the Bahrain-incorporated Albaraka Banking Group (ABG), is set to close its debut Sukuk offering this coming week after finishing a roadshow targeting a limited private investor base.
In an interview with Saudi Gazette, a senior Albaraka Turk official confirmed that the Bank hopes to raise up to US$200 million through this Tier 2 Subordinated Sukuk Al-Murabaha issuance. The Sukuk is being issued by ABT Sukuk Ltd, a Cayman Islands registerrd special purpose vehicle (SPV), owned by ABTP, which is also the obligor………………………………………..Full Article: Source

Gulf investors dominate Turkish sukuks’ flood

Laxman — Fri, 26 Apr 2013 01:14:35 +0000

$500 million sukuk from Türkiye Finans this week was just the latest in a flood of international debt issues from Turkey. But the identity of the arranging banks, and the investors who bought the issue, pointed to a shift in capital markets.
Middle Eastern investors dominated buying of the sukuk, taking 51 percent of the deal, which received just under $2 billion in orders. And of the four banks arranging the deal for Türkiye Finans, an Islamic bank majority-owned by Saudi Arabia’s National Commercial Bank, two were based in the Gulf: NCB Capital and Dubai’s Noor Islamic Bank………………………………………..Full Article: Source

Al-Azhar scholars submit sukuk law objections to Shura Council

Laxman — Fri, 26 Apr 2013 01:14:21 +0000

Al-Azhar’s Council of Senior Scholars submitted its objections to the new sukuk law to the Economic Committee at the Shura Council, Tuesday.Abdel Halim Al-Gamal, deputy head of the Economic Committee at the Shura Council, said that the objections were “welcomed unanimously” by the Committee.
He said that the Council objected to articles 1, 2, 3 4, 9, 11, 20, 22 and 30.“The scholars objected to issuing sukuk for religious endowments because they violate Sharia Law,” said Al-Gamal………………………………………..Full Article: Source

Al Hilal Bank UAE manager on debut Saudi MYR Sukuk programme

Laxman — Fri, 26 Apr 2013 01:14:05 +0000

Al Bayan Group Holding Company is a diversified holding company based in the Kingdom of Saudi Arabia, with businesses that include the supply of a large range of equipment and information technology products and services, including the provision of communication networks and the construction of infrastructure. The Programme was established on 2 April 2013 and the first issuance took place on 24 April 2013.
HSBC Amanah Malaysia Berhad and Hong Leong Islamic Bank Berhad acted as the Joint Lead Arrangers on the establishment of the Programme. HSBC Amanah Malaysia Berhad, Hong Leong Islamic Bank Berhad and Kenanga Investment Bank Berhad acted as the Joint Lead Managers on the first issuance under the Programme………………………………………..Full Article: Source

Hogan Lovells advises Al Bayan Group Holding Company on landmark Malaysian sukuk

Laxman — Fri, 26 Apr 2013 01:13:27 +0000

Hogan Lovells has advised Al Bayan Group Holding Company, a Saudi-based conglomerate, on its RM200.0m sukuk, issued on the 24th April 2013, out of its inaugural RM1.0bn Sukuk Wakalah Programme (the Sukuk Programme) - the first Malaysian Ringgit Sukuk Programme to be established by a Saudi corporate issuer and the first issuance by a Saudi corporate issuer of Malaysian Ringgit denominated sukuk in the Malaysian debt capital market to date.
The landmark sukuk has been issued via Al Bayan’s special-purpose vehicle incorporated in Malaysia, ABHC Sukuk Berhad………………………………………..Full Article: Source

Turkiye Finans issues $500 mln sukuk at 3.95 pct -bankers

Laxman — Thu, 25 Apr 2013 01:28:31 +0000

Turkish Islamic bank Turkiye Finans issued a $500 million sukuk, or dollar-denominated Islamic bond, at a price of 3.95 percent on Wednesday, bankers said.
The bank, majority owned by Saudi Arabia’s National Commercial Bank, had mandated Citigroup, HSBV, NCB Capital and Noor Islamic Bank for the issue last week……………………………………….Full Article: Source

Riyadh-based Al Bayan issues first ringgit sukuk of 1 bln ringgit programme

Laxman — Thu, 25 Apr 2013 01:28:15 +0000

Riyadh-based Al Bayan Holding became the first Saudi Arabian company to issue an Islamic bond in Malaysian ringgit, paving the way for more corporations from the kingdom to tap into Malaysia’s market, the world’s biggest for sukuk.
Al Bayan issued 200 million ringgit ($65.4 million) as the first tranche of a newly established 1 billion ringgit programme, a statement from Guidance Financial Group, the company’s advisers, said on Wednesday. Pricing details were not immediately available………………………………………..Full Article: Source

First Saudi firm issues sukuk in Malaysia

Laxman — Thu, 25 Apr 2013 01:27:57 +0000

Riyadh-based Al Bayan Holding became the first Saudi Arabian company to issue an Islamic bond in Malaysian ringgit, paving the way for more corporations from the Kingdom to tap into Malaysia’s market, the world’s biggest for sukuk.
Al Bayan issued 200 million ringgit ($65.4 million) as the first tranche of a newly established 1 billion ringgit program, a statement from Guidance Financial Group, the company’s advisers, said Wednesday. Pricing details were not immediately available………………………………………..Full Article: Source

Baker & McKenzie act for Saudi Binladin Group on landmark Sukuk

Laxman — Thu, 25 Apr 2013 01:27:43 +0000

Baker & McKenzie recently acted for the Saudi Binladin Group in relation to a SAR 1.3 billion (US$347 million) Sukuk al-ijara issued by SBG Sukuk Limited as an exempt offering in the Kingdom of Saudi Arabia. The Sukuk structure benefits from security over prime real estate in Jeddah as well as a corporate guarantee from the Saudi Binladin Group.
The Baker & McKenzie team was led by Partner Bilal Kahlon, who commented, “We are very pleased to have, once again, assisted the Saudi Binladin Group on their Sukuk issuance. The structure adopted for the issuance was particularly complex and innovative, setting a new standard for the Saudi debt capital market.”……………………………………….Full Article: Source

ICIEC approves new Sukuk insurance product

Laxman — Wed, 24 Apr 2013 01:44:51 +0000

The Sovereign Sukuk Insurance Policy was approved by the Board of Directors of the Islamic Corporation for Insurance of Investment and Export Credit (ICIEC) at a recent meeting held at the Islamic Development Bank’s headquarters in Jeddah.
Under the Chairmanship of Dr. Ahmed Mohamed Ali, President of the Islamic Development Bank Group, the Board authorised the ICIEC to launch the product, which will insure Sukuk investors against default on Sukuk issued by Sovereign entities of member countries………………………………………..Full Article: Source

SIB lists sukuk on Nasdaq Dubai

Laxman — Wed, 24 Apr 2013 01:44:35 +0000

Sharjah Islamic Bank (SIB) marked the listing of $500 million sukuk on Nasdaq Dubai on Monday.Mohammed Abdulla, Chief Executive of SIB, rang the opening bell at Dubai Financial Market (DFM) to celebrate the listing of the Sukuk on Nasdaq Dubai.
The listing of the Sukuk provides further support for the campaign to promote the “Dubai the Center of Sukuk” initiative launched in January 2013 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minster of UAE and Ruler of Dubai, in line with His Highness’s vision to position the Emirate as the Capital of Islamic Economy globally………………………………………..Full Article: Source

Ain Shams train project established through sukuk

Laxman — Wed, 24 Apr 2013 01:44:07 +0000

The Egyptian government will go into negotiations with an Islamic bank in Turkey to go into Initial Public Offering (IPO) regarding sukuk, said advisor to the finance minister on sukuk, Ahmed Al-Naggar.
The sukuk unit has already created a list of all the final projects that will be established through sukuk, which are expected to take place in June.Al-Naggar revealed that one of the projects that will be funded through sukuk is the Ain Shams train project, which is worth EGP 4.5bn in investments………………………………………..Full Article: Source

UAE’s Dana Gas shareholders approve sukuk restructuring

Laxman — Wed, 24 Apr 2013 01:43:47 +0000

Shareholders of Abu Dhabi-listed energy firm Dana Gas approved on Tuesday a plan to restructure its $920 million Islamic bond, the company said.
Last October Dana became the first company in the United Arab Emirates to miss repayment of a maturing bond, but it subsequently agreed new terms with a creditor committee representing bondholders, which included investment firms Ashmore Group and BlackRock………………………………………..Full Article: Source

Modern Sukuk - Sukuk rating on the Oman National Scale assigned - ‘omBBB+’

Laxman — Wed, 24 Apr 2013 01:43:40 +0000

Capital Intelligence (CI), the international credit rating agency, announced that it has assigned a provisional rating on the Oman National Scale of ‘omBBB+’ to the proposed Sukuk issue by Modern Sukuk S.A.O.C.
The rating is supported by the almost fully complete (i.e. except for the serviced apartments) status of Phase 1 of the project and the fact that both offices and mall space are nearly fully let on long term leases - providing an assured source of stable cash inflow………………………………………..Full Article: Source

Sukuk issuance to hit USD275bln by 2013-end

Laxman — Tue, 23 Apr 2013 01:02:43 +0000

The volume of sukuk (Islamic bonds) issued by end of the first quarter of 2013 reached $34.2 billion, increasing on a quarterly based rate at 21.5 percent, after an abundant year that witnessed a 54 percent increase in issuance, Kuwait Finance House (KFH)-Research said Sunday.
Sovereign issuances continue to dominate sukuk issuance, followed by issuances of corporates, then sub-sovereign authorities. The sukuk issuance is expected to reach $275 billion by the end of the year, it said………………………………………..Full Article: Source