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Islamic Finance Briefing - Archive | September, 2011

Malaysia Sukuk sales on track for record

Posted on 30 September 2011 by Laxman  |  Email|Print

Najib RazakSales of Malaysian ringgit- denominated Islamic bonds are poised to beat the 2007 record as companies tap into lower borrowing costs to fund government infrastructure projects.
Offerings of the debt rose 76 per cent to RM32.9 billion (US$10.4 billion) this year from the same period in 2010, approaching the all-time high of RM38.7 billion, data compiled by Bloomberg show……………………………………….Full Article: Source

QIIB eyes benchmark Islamic bond

Posted on 30 September 2011 by Laxman  |  Email|Print

Qatar International Islamic Bank (QIIB) is planning to issue a benchmark-sized Islamic bond and has hired banks to arrange the sale, its chief financial officer told Reuters on Thursday.
The Islamic lender appointed QNB Capital, the investment banking arm of Qatar National Bank , Standard Chartered and HSBC to issue a benchmark sukuk, or Islamic bond, CFO Edward Wong said……………………………………….Full Article: Source

Qatari lender QIIB picks 3 banks for Islamic bond - exec

Posted on 30 September 2011 by Laxman  |  Email|Print

Qatar International Islamic Bank has picked QNB Capital, the investment banking arm of Qatar National Bank, Standard Chartered and HSBC to arrange a benchmark sukuk, or Islamic bond, its chief financial officer told Reuters on Thursday.
‘It will be a benchmark offering, but I can’t confirm the size or timetable,’ the bank’s chief financial officer Edward Wong said……………………………………….Full Article: Source

Tamweel plans up to $500mln Sukuk in Q4

Posted on 30 September 2011 by Laxman  |  Email|Print

Islamic mortgage lender Tamweel, whose shares resumed trading in May, will issue a $300-$500 million sukuk in the fourth quarter, the acting chief executive of the Dubai-based company said on Tuesday.
“The plan is to be out with something in the last quarter,” Varun Sood told reporters at a property event in Dubai, adding the sukuk could be priced in dollars or Malaysian ringgit……………………………………….Full Article: Source

Qatar’s QFIB to get 10pct stake in Watania IPO

Posted on 30 September 2011 by Laxman  |  Email|Print

Qatar’s Shariah-complaint investment firm Qatar First Investment Bank has been allocated a 10% stake in Abu Dhabi-based National Takaful Company’s, or Watania, initial public offering that ended in May, people familiar with the matter said yesterday.
“QFIB had subscribed to Watania’s initial public offering and was allocated a 10.3% stake. The company also recently got a board seat confirmation,” one banker said……………………………………….Full Article: Source

Talent shortage in Shariah banking

Posted on 30 September 2011 by Laxman  |  Email|Print

Malaysia requires more professionals and skilled talents with dual knowledge in conventional and Syariah banking services as the country moves towards becoming an Islamic financial hub, said the Mentri Besar.
Datuk Seri Dr Zambry Abdul Kadir said the current shortage of qualified Islamic finance professionals was not only a challenge but posed as a serious threat to the growth and development of the banking industry……………………………………….Full Article: Source

CBN to extend Islamic banking to other financial sectors

Posted on 30 September 2011 by Laxman  |  Email|Print

The Central Bank of Nigeria, CBN, said that plans are underway to extend the non-interest banking or Islamic banking principles to non-banking financial services. Some non-bank financial institutions, such as insurance companies, fund managers stockbroking firms have already introduced to the market products designed after the Islamic banking model.
Speaking at the 16th annual CBN seminar for financial market journalists in Adamawa state, Special Adviser to the CBN Governor on Non-Interest Banking, Dr. Bashir Umar said that the apex bank will ensure that the proposed introduction of non-interest financial services will not be limited to banking services alone……………………………………….Full Article: Source

Religious leaders divided over Islamic banking in Nigeria

Posted on 30 September 2011 by Laxman  |  Email|Print

Christian leaders in Nigeria have described the planned introduction of Islamic banking as a ploy to ‘Islamize the secular country’ but their Muslims colleagues affirm that the banking system has come to stay.
With a Muslim group threatening an all-out war if the bank is not allowed to operate. This is the lingering controversy that has gripped Africa’s most populous country which has recorded the loss of hundreds of lives to religious crises in the past……………………………………….Full Article: Source

Sanusi lists pitfalls of Islamic banking

Posted on 30 September 2011 by Laxman  |  Email|Print

The Governor, Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi, has listed the major challenges facing the implementation of non-interest banking (Islamic banking) in the country.
The challenges he said, include, dearth of requisite knowledge, skills and technical capacity to regulate and supervise non-interest banks, secondary limited knowledge of accounting and auditing standards pertinent to Islamic financial institutions……………………………………….Full Article: Source

Islamic banking: Panacea for global financial crisis

Posted on 30 September 2011 by Laxman  |  Email|Print

An Islamic financial system has the potential to redress this serious threat to global financial stability because of its fundamental operating principle of a close link between financial and productive flows and because of its basic but core requirement of risk sharing.
Let me use a somewhat lengthy illustration to drive home my point. The main source of profit for the banks is from the interest they charge and from other ancillary services……………………………………….Full Article: Source

Emaar seeks $800 mln loan backed by Dubai Mall

Posted on 30 September 2011 by Laxman  |  Email|Print

Dubai’s Emaar Properties , builder of the world’s tallest tower, is using four of its shopping malls including the Dubai Mall as collateral for an $800 million two-tranche loan, banking sources said on Thursday.
The facility, which consists of a five-year tranche and an eight-year amortising loan, is being arranged by Dubai Islamic Bank , National Bank of Abu Dhabi and Standard Chartered , four sources told Reuters. ………………………………………Full Article: Source

Saudi Takaful listings - A performance snapshot

Posted on 30 September 2011 by Laxman  |  Email|Print

Over the years, Takaful has dug its way out of its niche to become a growing and high-demand sector, especially in the Middle East, where the majority of the population is Muslim. The question that has dogged this growth is: has it been driven by religious tenets or by laws, mechanisms, technicalities, investment opportunities, and risk management know-how?
Global Takaful contributions are expected to reach USD 12 billion by the end of this year and USD 25 billion by 2015, according to Ernst & Young’s World Takaful Report 2011 released in July 2011……………………………………….Full Article: Source

Prudential BSN Takaful, Malaysia, receives Rising Star Takaful Award

Posted on 30 September 2011 by Laxman  |  Email|Print

Prudential BSN Takaful (PruBSN) has been awarded the Rising Star Takaful Institution 2011 award from the ‘The Asset,’ a Hong Kong based publishing and research group. The award was received by Mr Azim Mithani, Chief Executive Officer of PruBSN, at a ceremony in Kuala Lumpur in early September.
The Asset Triple A Awards: Islamic Finance, are international awards which honour shariah-compliant finance companies worldwide in various categories. The awards have been running for over 20 years……………………………………….Full Article: Source

Emirates NBD Asset Management relaunches Islamic hedge fund

Posted on 29 September 2011 by Laxman  |  Email|Print

Deon VernooyEmirates NBD Asset Management joins forces with Man to give a four year old Islamic hedge fund another go. $20 million fund of funds hoping to reach $100 million in size within a year.
Emirates NBD Asset Management has teamed up with alternative investment management company Man to relaunch the Emirates Islamic Alternative Strategies Fund, which originally came into being in 2007……………………………………….Full Article: Source

Islamic bond backed by undersea land plot: Nakheel

Posted on 29 September 2011 by Laxman  |  Email|Print

Ali Rashid LootahNakheel PJSC, the builder of man- made islands off Dubai’s coast, said some of the land used as collateral for a $1.31 billion Islamic bond is at the bottom of the Persian Gulf.
“The land has been valued by reputable companies and was accepted by lenders and trade creditors,” Chairman Ali Rashed Lootah said after a press conference today, without saying who evaluated the asset. “What’s the issue?”………………………………………Full Article: Source

Bahrain gets ‘positive’ feedback for $1 bln Islamic bond

Posted on 29 September 2011 by Laxman  |  Email|Print

Bahrain has received “positive” feedback from investors for its plan to sell $1 billion in Islamic bonds next month, Central Bank Governor Rasheed al-Maraj said.
The maturity of the sukuk may be between seven to 10 years, Maraj said in an interview yesterday at Bloomberg’s headquarters in New York. The Persian Gulf island-kingdom plans to use the money to help finance a budget deficit of about 5 percent of gross domestic product, Maraj in a separate Sept. 25 interview at the International Monetary Fund in Washington……………………………………….Full Article: Source

Emirates NBD plans to expand in Asia Pacific

Posted on 29 September 2011 by Laxman  |  Email|Print

Emirates NBD, the largest bank by assets in the UAE, is considering opening representative offices in China and a number of Asia Pacific countries and expanding its Islamic banking operations in the region, joining an increasing number of Middle Eastern lenders seeking a larger presence in some of the world’s fastest-growing economies, a senior executive said.
Emirates NBD already has a branch in Singapore where it offers wholesale banking, treasury and wealth management services to take advantage of increasing trade flows between South East Asia and the Middle East……………………………………….Full Article: Source

India: RBI pulls up Islamic bank

Posted on 29 September 2011 by Laxman  |  Email|Print

The Reserve Bank of India has asked the country’s first and only Shariat-based NBFC, the Kozhikode-based Alternative Investments and Credit Limited (AICL), to commit sacrilege. The NBFC, for which charging interest is ‘haraam’ or forbidden, has now been asked to publish an interest rate structure just like any other conventional banks.
The charge is that the AICL, which has been operational for over a decade, has flouted RBI’s fair practices code under which a financier has to specify the interest structure. The AICL has been given two weeks to respond to the RBI’s directive……………………………………….Full Article: Source

CBN identifies odds against Islamic banking

Posted on 29 September 2011 by Laxman  |  Email|Print

Despite the modest progress made in the institutionalisation of non-interest banking in the country, the Central Bank of Nigeria (CBN) has disclosed that the absence of Islamic insurance to protect investments of such banks against unforeseen hazards could impair the growth of the Islamic banking industry.
Governor of the apex bank, Mallam Sanusi Lamido Sanusi, delivering a keynote address, on Wednesday in Yola, the Adamawa State capital, at the 16th CBN seminar for Finance Correspondents and Business Editors, listed the odds against the new banking model to include limited knowledge of accounting and auditing standards pertinent to Islamic financial institutions……………………………………….Full Article: Source

Challenges of non-interest banking, by CBN

Posted on 29 September 2011 by Laxman  |  Email|Print

The Central Bank of Nigeria (CBN) raised an alarm on the success of Islamic Banking without an established Islamic insurance institution. CBN Governor, Sanusi Lamido Sanusi, said the absence of Islamic insurance to protect the investments of such non-interest banks against unforeseen hazards could impair the growth of the Islamic banking industry in Nigeria.
Sanusi, who spoke through a CBN Director, Mallam Dahiru Mohammed, raised the alarm in Jimeta, Adamawa State, during the 16th Finance Correspondents and Business Editors seminar, organised by the bank……………………………………….Full Article: Source

Bank Islam Malaysia targets young savers

Posted on 29 September 2011 by Laxman  |  Email|Print

Bank Islam Malaysia expects to attract 100,000 depositors and deposits of MYR 50 million ($15.8 million) in year one of its Al-Awfar Junior Savings Account-i.
Khairul Kamarudin, General Manager for Consumer Banking, said, “With the launch of this new product, the bank expects a minimum growth of 15 per cent in its assets from MYR 9.2 billion last year. With the introduction of the Al-Awfar Junior Savings Account-i, Bank Islam has taken a big step towards enhancing its position as the leader in the Islamic banking industry and ensuring that Shari’ah-based financial products and services are available at every level.”………………………………………Full Article: Source

Resignation at Bank Melli, ouster at Bank Saderat, Saman?

Posted on 29 September 2011 by Laxman  |  Email|Print

Chief Executive Officer of Bank Melli Mahmoud-Reza Khavari has resigned, reports claim CEOs of Bank Saderat, Saman Bank ousted.
Khavari admitted that Bank Melli had some involvement in the fraud but accused Bank Saderat of committing the bulk of wrongdoing. In a letter addressed to Iranian Economy Minister Shamsoddin Hosseini Khavari said that “to respect public opinion” he would resign from his post, even though Bank Melli was not directly involved in the scandal, which he described as “this vicious phenomenon”………………………………………Full Article: Source

Bahrain ‘capital of Islamic finance’

Posted on 29 September 2011 by Laxman  |  Email|Print

Bahrain’s position as the international capital of Islamic finance has been confirmed by the industry’s enthusiasm for the kingdom as a key conference centre. This week’s World Islamic Funds Conference which closed at the Gulf Hotel yesterday, saw a record number of delegates from across the world come to Bahrain and debate the latest developments in the industry.
Conference organiser David McLean said that he was overwhelmed by the turnout for the event, now in its seventh year in Bahrain. He added that the unrest earlier in the year had not in any way diminished the country’s leadership in the field……………………………………….Full Article: Source

Bahrain Islamic summit sees record delegates

Posted on 29 September 2011 by Laxman  |  Email|Print

The World Islamic Funds Conference which closed in Bahrain yesterday (September 27) saw a record number of delegates from across the world come to Bahrain and debate the latest developments in the industry.
Conference organiser David McLean said that he was overwhelmed by the turnout for the event, now in its seventh year in Bahrain……………………………………….Full Article: Source

Islamic securities ’set for solid growth’ internationally

Posted on 29 September 2011 by Laxman  |  Email|Print

Despite the recent credit crunch, an increase in commodity prices and global economic slowdown, the Islamic securities markets is poised for solid growth, said a top banker on the sidelines of a major Islamic finance summit in Bahrain.
The geographical spread of Islamic securities products and activities is likely to grow in the Europe, especially the UK and France, Asia Pacific countries, North Africa and the energy-rich Central Asian states, remarked Central Bank of Bahrain (CBB) executive director, financial institutions supervision, Abdul Rahman Al Baker……………………………………….Full Article: Source

Islamic funds and investments market must achieve critical mass at global scale for long term success

Posted on 29 September 2011 by Laxman  |  Email|Print

David McLean, Managing Director of the World Islamic Funds and Financial Markets Conference said that “Financial centres across the globe are vying to become ‘domiciles of choice’ for Islamic funds.
With many new international markets now opening their doors to Islamic finance and investments combined with the increasing internationalisation of large-scale transactions, it is essential to understand the rapid development of the most dynamic regions and build a deeper relationship between the key markets - so that leading institutions are better placed to compete on a global scale.”………………………………………Full Article: Source

Infrastructure investment to become ‘increasingly Shariah-compliant’

Posted on 29 September 2011 by Laxman  |  Email|Print

Funding for global infrastructure will increasingly become Shariah-compliant as highly liquid Gulf sovereign wealth funds look to invest according to the tenets of Islam outside their own borders, leading bankers have said.
Speaking after a panel session on Islamic finance at a banking conference last week, Yakub Bobat, global head of HSBC Amanah Commercial Banking, said an available pool of capital from Gulf-based sovereign wealth funds – combined with demand from the Islamic financial industry for ethically acceptable asset classes – had created a natural market for infrastructure investment……………………………………….Full Article: Source

Islamic investment grows to over $1.5 trillion said Al Baker

Posted on 28 September 2011 by Laxman  |  Email|Print

Abdul Rahman Al BakerShariah-compliant products globally stands at over $1.5 trillion. These include equities that conform with Islamic principles, sukuk and Islamic funds, said the Executive Director of Financial Institutions Supervision, Central Bank of Bahrain.
Delivering the inaugural keynote address at the 7th World Islamic Funds and Financial Markets Conference at the Gulf Hotel in Bahrain, Abdul Rahman Al Baker, the Executive Director of Financial Institutions Supervision, Central Bank of Bahrain (CBB), said Islamic asset management industry is an area that has grown to an increasingly substantial segment within the financial markets.”………………………………………Full Article: Source

Islamic securities ’set for solid growth’ internationally

Posted on 28 September 2011 by Laxman  |  Email|Print

Despite the recent credit crunch, an increase in commodity prices and global economic slowdown, the Islamic securities markets is poised for solid growth, said a top banker on the sidelines of a major Islamic finance summit in Bahrain.
The geographical spread of Islamic securities products and activities is likely to grow in the Europe, especially the UK and France, Asia Pacific countries, North Africa and the energy-rich Central Asian states, remarked Central Bank of Bahrain (CBB) executive director, financial institutions supervision, Abdul Rahman Al Baker……………………………………….Full Article: Source

Bahrain has ‘positive’ feedback for $1 bln Sukuk, Maraj says

Posted on 28 September 2011 by Laxman  |  Email|Print

Bahrain has so far received “positive” feedback from investors for its plan to sell $1 billion in Islamic bonds next month, Central Bank Governor Rasheed al-Maraj said.
The maturity of the sukuk may be between seven to 10 years, Maraj said in an interview yesterday at Bloomberg’s headquarters in New York. The Persian Gulf island-kingdom plans to use the money to help finance a budget deficit of about 5 percent of gross domestic product, Maraj in a separate Sept. 25 interview at the International Monetary Fund in Washington……………………………………….Full Article: Source

Gulf witnesses increased Sukuk activity

Posted on 28 September 2011 by Laxman  |  Email|Print

With economic activity once again on the rise in the GCC economies, more and more investments and fund-raising are being done through sukuk (Islamic bond) issuance, according to experts at a key banking summit in Bahrain.
The Islamic funds and investments market must achieve critical mass at a global scale for long-term success, they said at the seventh Annual World Islamic Funds and Financial Markets Conference 2011………………………………………Full Article: Source

Persian Gulf bond sales approach 2008 low as risk increases: Arab Credit

Posted on 28 September 2011 by Laxman  |  Email|Print

Bond sales from the Persian Gulf region have slumped to the lowest level since 2008 as the threat of another global recession fueled the steepest surge in the region’s credit risk in seven quarters.
Sovereign and company debt issuance in the six-nation Gulf Cooperation Council, which includes Saudi Arabia and the United Arab Emirates, have totaled $1.54 billion since June 30, the smallest amount since the last quarter of 2008, data compiled by Bloomberg show……………………………………….Full Article: Source

Sukuk undervalued in market, Nakheel says

Posted on 28 September 2011 by Laxman  |  Email|Print

The value of Nakheel’s Islamic bond, or sukuk, is undervalued in the marketplace, the company’s chairman said.
The Dubai-based property developer, which completed a complex Dh59 billion debt restructuring last month, will issue the final tranche of its $1.63 billion (Dh5.98 billion) Islamic bond by the end of 2011 and also expects to make a profit for the second consecutive year, Ali Rashid Lootah, Nakheel’s Chairman, said following the opening ceremony of the Cityscape Global property exhibition……………………………………….Full Article: Source

Dubai’s Tamweel plans up to $500 mln Sukuk in Q4

Posted on 28 September 2011 by Laxman  |  Email|Print

Islamic mortgage lender Tamweel , whose shares resumed trading in May, will issue a $300-$500 million sukuk, or Islamic bond, in the fourth quarter, the acting chief executive of the Dubai-based company said on Tuesday.
“The plan is to be out with something in the last quarter,” Varun Sood told reporters at a property event in Dubai, adding the sukuk could be priced in dollars or Malaysian ringgit……………………………………….Full Article: Source

Project Islamic bond market seen growing in Saudi Arabia

Posted on 28 September 2011 by Laxman  |  Email|Print

Project Islamic bonds are expected to pick up steam in Saudi Arabia with the launch of the first project sukuk this month as issuers seek to diversify sources of funding following global financial woes that may dry up lending from international banks.
Saudi Arabia, with projects underway worth $623 billion according to the economic weekly MEED, is the largest Gulf markets and is expected to require billions of dollars in financing. Financing has traditionally come from government funds and syndicated loans from local and international banks……………………………………….Full Article: Source

AmIslamic Bank prices US$189mln lower tier 2 issue

Posted on 28 September 2011 by Laxman  |  Email|Print

AmIslamic Bank has priced its 10-year non-call five subordinated sukuk at 4.40%, the top end of a revised guidance.
The targeted size of M$600m (US$189m) remains unchanged for, what will be, AmIslamic’s first issue off a M$2bn subordinated sukuk Musyarakah programme set up very recently……………………………………….Full Article: Source

Man Group, ENBD in Shariah fund tie-up

Posted on 28 September 2011 by Laxman  |  Email|Print

Emirates NBD’s asset management arm and Man Group have announced a tie-up which will see the hedge fund firm manage one of the lender’s Shariah-compliant funds, the companies said on Tuesday.
Man Investments will take over the management of the Emirates Islamic Alternative Strategies Fund, with the assets allocated to the Man GLG Multi-Strategy Fund, as Emirates NBD Asset Management looks to grow the product……………………………………….Full Article: Source

Al-Madani: Ideas from Islamic banking worth examining

Posted on 28 September 2011 by Laxman  |  Email|Print

Western bankers and policymakers should learn from Islamic banking principles, argued the president of the Islamic Development Bank in a speech in Low Library on Monday.
Dr. Ahmad Mohamed Ali Al-Madani was introduced by Jeffrey Sachs, director of the Earth Institute and the Quetelet Professor of Sustainable Development at the School of International and Public Affairs. Sachs drew attention to ties between the Earth Institute and the Islamic Development Bank, saying that he has seen the Bank do excellent development work throughout the Islamic world……………………………………….Full Article: Source

Don drums up support for Islamic banking

Posted on 28 September 2011 by Laxman  |  Email|Print

An academic, Lukman Abdulraheem, has called on Nigerians to support the adoption of Islamic Banking in the country. Abdulraheem, a lecturer at the Yaba College of Technology, on Monday, in Lagos, said “Islamic banking possesses the power to shoot up Nigeria’s economy from recession to lofty heights”.
According to him, Islamic banking had a lot of benefits that could transform Nigeria’s economy into a “pluralistic economy” as the non-conventional mode of banking, which was hinged on profit-loss sharing between the financial institutions and the customers, would help in lessening the risks borne by customers……………………………………….Full Article: Source

Middle Easter buyers increasing in Malaysia, research suggests

Posted on 28 September 2011 by Laxman  |  Email|Print

Economic uncertainty and the availability of Islamic finance is driving Middle Eastern real estate investors to look East to markets such as Malaysia, it is claimed.
Middle Eastern investment into Malaysian real estate projects has risen 11.4% in the third quarter of 2011 compared with the same period in 2010, according to figures from IP Global, , a property investment company which specialises in emerging and recovering markets……………………………………….Full Article: Source

Barclays Wealth appoints new MENA head

Posted on 28 September 2011 by Laxman  |  Email|Print

Rory Gilbert appointed Managing Director, Head of Middle East and North Africa for International Private Banking, assumes responsibilities of Soha Nashaat who moves to a senior client relationship and strategic advisory role for Barclays Wealth in the MENA region.
Emmanuel Fievet, Head of Barclays Wealth International Private Banking, EMEA, said, “This is a significant appointment for Barclays Wealth, in particular because of our commitment to private banking across the MENA region. ………………………………………Full Article: Source

Global Islamic funds’ assets up 7.6 pct in 2010-E&Y

Posted on 27 September 2011 by Laxman  |  Email|Print

Ashar NazimAssets held by global Islamic funds jumped 7.6 percent in 2010 to $58 billion, reflecting new money inflows and strength in fixed income, commodities and other alternative investments, Ernst & Young said on Monday.
This compares with global Islamic funds’ assets of $53.9 billion in 2009 and $51.4 billion in 2008………………………………………Full Article: Source

Global Islamic funds assets growth due to market performance

Posted on 27 September 2011 by Laxman  |  Email|Print

Global Islamic fund assets under management (AuM) grew by 7.6 per cent to $58 billion in 2010, up from $53.9 billion in 2009. The growth was largely due to market performance and partially on account of new money inflows, said the Ernst & Young report, which was released on Monday at the World Islamic Funds and Capital Markets Conference in Bahrain.
“Concentration in equities remains, as they account for 39 per cent of the $58 billion assets under management, or AuM. But bringing new money into equities is challenging. Fixed income, commodities and alternatives did well in 2010, which was a record year for Sukuk with issuance of $ 50 billion.”………………………………………Full Article: Source

Gulf wealth to add $70bln to Islamic funds by 2013

Posted on 27 September 2011 by Laxman  |  Email|Print

Wealth from investors in the Gulf will add more than $70bn to Islamic funds by 2013, Ernst & Young MENA said on Monday.
Shariah funds may struggle to boost assets this year and in 2012 due to the “increasing likelihood of sovereign debt crisis in Europe and a double dip recession in the US,” Ashar Nazim, Islamic financial services leader at Ernst & Young wrote in the report……………………………………….Full Article: Source

Initial price guidance set for Saudi Aramco, Total sukuk

Posted on 27 September 2011 by Laxman  |  Email|Print

Saudi Aramco and French oil group Total have set initial price guidance for their expected 3.75 billion Saudi riyal ($1 billion) Islamic bond at 6-month Saudi interbank offered rate (SAIBOR) plus 95-105 basis points.
The price was published on lead manager Deutsche Securities Saudi Arabia’s website. Bankers have said they expect final pricing on Sept. 28……………………………………….Full Article: Source

Persian gulf bonds beat emerging-market debt on oil: Arab Credit

Posted on 27 September 2011 by Laxman  |  Email|Print

Persian Gulf bonds are beating emerging-market debt this year as increasing revenue from oil exports help the region withstand global financial-market turmoil better than most developing nations.
Dollar notes from the Gulf Cooperation Council have returned 6 percent in 2011, according the HSBC/NASDAQ Dubai GCC US Dollar Sukuk/Bond Index. Emerging-market securities worldwide gained 3.2 percent, JPMorgan Chase & Co. data show……………………………………….Full Article: Source

Bahrain plans $1bln sovereign sukuk

Posted on 27 September 2011 by Laxman  |  Email|Print

Bahrain is planning to issue a $1 billion sovereign Islamic bond and has mandated three banks for the proposed sale. BNP Paribas, Citigroup and Standard Chartered have been appointed to manage the issue, the bankers with knowledge of the move said, although they gave no idea as to when the issue would happen.
The Central Bank of Bahrain had initially invited banks to pitch for a $1bn conventional bond back in February but the results of that process were delayed because of the outbreak of political unrest in the kingdom………………………………………Full Article: Source

Saudi Aramco, Total Refinery JV set price guidance for Sukuk

Posted on 27 September 2011 by Laxman  |  Email|Print

Saudi Aramco Total Refining and Petrochemical Co., or Satorp, has set initial price guidance for its planned Islamic bond, or sukuk, at 6 month Saudi interbank offered rate, or SAIBOR, plus 95-105 basis points, one of the lead managers of the offering said Monday.
The subscription period for the offering will last until October 1, Deutsche Securities Saudi Arabia said on its website. The total sukuk size could go up to 3.75 billion Saudi riyals ($1 billion)……………………………………….Full Article: Source

CBB Sukuk Al-Salam securities over subscribed

Posted on 27 September 2011 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 272%.
The expected return on the issue, which begins on 28 September 2011 and matures on 28 December 2011, is 0.70%……………………………………….Full Article: Source

WIKILEAKS: Malaysia promotes Islamic finance: US firms concerned over governmental preferences

Posted on 27 September 2011 by Laxman  |  Email|Print

Demand for Islamic financial paper continues to outstrip supply, due in large part to the growing interest of Middle East petrodollar holders to park their money in Sharia compliant instruments. The biggest success story to date is the Islamic bond (sukuk), the only product Islamic scholars from different parts of the globe have reached consensus on regarding their permissibility under Islamic law.
The Government of Malaysia (GOM) continues to push for global consensus on a wider range of Islamic products and it is implementing regulatory and tax preferences for firms offering such products in an effort to make Malaysia a global hub for the industry in this growing niche market……………………………………….Full Article: Source

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