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Islamic Finance Briefing - Archive | April, 2012

Islamic finance ‘set to face’ its biggest shake-up in years

Posted on 30 April 2012 by Laxman  |  Email|Print

Khaled Al FakihIslamic finance may face its biggest shake-up in years as a top standard-setting body seeks to reform the way the industry does business, including the role of highly paid scholars in enforcing religious principles.
Khaled Al Fakih, the new secretary-general of the Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI), outlined plans for a sweeping review of its guidelines in an interview with Reuters………………………………………..Full Article: Source

Muslims on Wall Street: Pragmatic over dogmatic

Posted on 30 April 2012 by Laxman  |  Email|Print

They have been around for many years, if not decades, and it’s only now they are being noticed because of a variety of factors.
Times recently interviewed several American Muslims, including me, working in the financial arena for an article Muslims on Wall Street, Bridging Two Traditions. It explored two ‘conflicts’: Muslims working in conventional finance may encounter ‘interest’ against their faith, and challenges of abiding by Islamic ‘traditions’ in a secular workplace………………………………………..Full Article: Source

Goldman’s $2bln sukuk debut puts Islamic scholars on edge

Posted on 30 April 2012 by Laxman  |  Email|Print

Goldman Sachs Group Inc’s $2 billion (Dh7.34 billion) Islamic debt debut is leading scholars to call for stricter supervision. Goldman said in an Oct-ober 18 prospectus that it would use proceeds for general corporate purposes and financing needs.
Non-Islamic banks need to make investment plans clearer, while approvers need to supervise more rigorously, Rusni Hassan and Mohammad Akram Laldin, who sit on the Malaysian central bank’s Sharia Advisory Council, said in separate interviews………………………………………..Full Article: Source

Dubai sukuk ‘enough to manage budget gap’

Posted on 30 April 2012 by Laxman  |  Email|Print

Proceeds from Dubai’s new $1.25 billion, two-tranche Islamic bond provide enough funds for the emirate to manage its budget deficits and refinancing plans, a senior government official said.
Dubai priced on Wednesday a $600 million 5-year tranche at 4.9 percent and a $650 million 10-year tranche at 6.45 per cent and the department of finance said the issues drew orders of more than $4.5 billion………………………………………..Full Article: Source

Low borrowing costs could trigger wave of bond sales

Posted on 30 April 2012 by Laxman  |  Email|Print

The Dubai government’s $1.25 billion (Dh4.59 billion) Islamic bond sale sets the stage for issuers in the emirate to take advantage of near record-low borrowing costs as they complete the refinancing of $15 billion this year.
The emirate which narrowly escaped a default in 2009 priced five-year Islamic bonds at 4.9 per cent and ten-year sukuk at 6.45 per cent. The five-year pricing is Dubai’s lowest on record for a dollar-denominated international sale, data compiled by Bloomberg show………………………………………..Full Article: Source

Nakheel to issue a third tranche sukuk in two months’

Posted on 30 April 2012 by Laxman  |  Email|Print

Fast forward to April 2012, and as chairman Ali Rashid Lootah sits down to announce Nakheel’s latest annual results, it appears things have changed - at least in terms of the developer’s fortunes anyway.
“We achieved profit of AED1.28bn (US$348.5m)… It has been a good year. We have been doing fantastic across the board, across all of our areas… It is a big sign of the recovery of the market,” he says. He also said that a third tranche sukuk is likely to be issued in two months’ time………………………………………..Full Article: Source

Bahrain Islamic Bank reports slump in Q1 profits on provisions

Posted on 30 April 2012 by Laxman  |  Email|Print

Bahrain Islamic Bank reported net profit of BHD 543,000 ($1.4 million) for Q1 2012, compared with BHD 1.5 million a year ago. Operating profit dropped from BHD 2.5 million to BHD 2 million. The bank says it took provisions of BHD 1.5 million as a precaution against any ‘unforeseeable deterioration’ in asset values compared with BHD 1 million last time.
Chairman Khalid Abdulla Al-Bassam noted an increase in customer deposits by BHD 30 million in the first three months, equivalent to five per cent of total deposits. ……………………………………….Full Article: Source

DIB net profit rises 11pct in Q1 2012

Posted on 30 April 2012 by Laxman  |  Email|Print

Dubai Islamic Bank, DIB, the oldest Islamic bank in the region, on Sunday reported an 11 per cent surge in net profit to Dh245 million for the first quarter of 2012 from Dh222 million in the same 2011 period.
The bank said the result demonstrated its “sustained growth across core operations.” DIB’s total revenue during the first quarter was Dh1.23 billion compared to Dh1.28 billion in the first quarter of 2011 while the bank’s assets stood at Dh92.5 billion as customer deposits reached Dh68.1 billion, an increase of five per cent compared with Dh 64.7 billion as of December 31, 2011………………………………………..Full Article: Source

Qatar Islamic Bank financial strength rating affirmed on negative outlook

Posted on 30 April 2012 by Laxman  |  Email|Print

Capital Intelligence (CI), the international credit rating agency, announced that it has affirmed Qatar Islamic Bank’s (QIB’s) Financial Strength Rating (FSR) of ‘A’, which reflects the Bank’s overall strong credit metrics, a robust operating environment and QIB’s franchise as the leading Islamic bank in Qatar.
Notwithstanding substantial consolidation of the Bank’s core business activities last year, a ‘Negative’ Outlook is assigned to the FSR, in view of the continued decline in the Bank’s profitability over the past three years………………………………………..Full Article: Source

Maybank Islamic eyes region

Posted on 30 April 2012 by Laxman  |  Email|Print

The buzz of activity at Maybank Islamic Bhd is a sign that’s most welcome to its CEO Muzaffar Hisham. It is the largest Islamic bank in the country which had seen assets grow to US$23bil (RM70.32bil) at the end of last year and the hectic movement within the corridors of the bank is an indication of the momentum it has built.
Having built its position through the Islamic window at parent Malayan Banking Bhd’s branches, Maybank Islamic is now looking to branch out its success formula into the region………………………………………..Full Article: Source

Is riba-free banking possible?

Posted on 30 April 2012 by Laxman  |  Email|Print

Islamic banking has grown reasonably fast in the last decade in Pakistan. People invest religiously trusting the fatwa of the so-called Sharia boards of these banks.
Are these financial instruments really riba-free (interest-free)? Do these instruments conform to the juristic and ethical frameworks laid down by the Quran, the Holy Prophet (PBUH) and the imams of the leading schools of thought?……………………………………….Full Article: Source

Outlook bright as Saudi banks gain strength: Reinhold Leichtfuss

Posted on 30 April 2012 by Laxman  |  Email|Print

Islamic banking has indeed won market shares in some GCC markets in recent years, according to Reinhold Leichtfuss, senior partner and managing director at Boston Consulting Group’s (BCG’s) Dubai office, and head of BCG’s Financial Institutions Practice in the Middle East.
“We observe, however, that for many customers the product features as well as the overall service quality play a big role in their selection of banks. Thus, Islamic banks also have to make sure that they are providing a better customer experience if they want to outgrow the market,” Reinhold Leichtfuss said……………………………………….Full Article: Source

Islamic finance an opportunity for UK county Yorkshire

Posted on 30 April 2012 by Laxman  |  Email|Print

Professor Ross Haniffa, Director of the Centre for Accounting and Accountability Research, believes Yorkshire should be taking the lead for Islamic finance in the UK.
In a statement posted on Hull University Business School’s website, Haniffa talks about the opportunities for Yorkshire businesses to get involved in Islamic finance. “A significant proportion of the UK Muslim community lives and works in the Yorkshire region. Yet banks offering the Shari’ah-compliant services of Islamic finance are still few and far between,” he said………………………………………..Full Article: Source

CBFS launches Islamic finance training

Posted on 30 April 2012 by Laxman  |  Email|Print

The College of Banking and Financial Studies (CBFS) has launched four in-house training offerings in Islamic Finance for the banking and financial sector leading to globally recognised certifications — the Islamic Finance Qualification (IFQ) of the Chartered Institute of Securities and Investment (CISI), the Diploma in Islamic Finance of Certified Institute of Management Accountants (CIMA), UK, Certified Islamic Public Accountant (CIPA) and Chartered Sharia Auditor and Adviser (CSAA) of the Accounting and Audit Organisation of Islamic Financial Institutions (AAOIFI), Bahrain.……………………………………….Full Article: Source

Thankful to Takaful

Posted on 30 April 2012 by Laxman  |  Email|Print

Contributions by an Islamic insurance firm has enabled students of some schools in Sabah to improve their grasp of the English language.
Ever since he started reading The Star, Form Three student Richie Ronaldo Jibon has found it easier to understand the news. The SMK Bandaraya, Kota Kinabalu, Sabah, student said that the paper is interesting with its stories and pictures………………………………………..Full Article: Source

BFX trading turnover crosses $1 bln mark

Posted on 30 April 2012 by Laxman  |  Email|Print

The Bahrain Financial Exchange (BFX), the first multi-asset exchange in the Middle East and North Africa (MENA) region, has announced achieving a key milestone with the cumulative (single-side) trading turnover value crossing the $1 billion mark on April 24, with the total trading volume increasing to 24,046 contracts.
The highest (single-side) daily trading turnover was $58.27 million, with a trading volume of 1,189 contracts achieved on April 23………………………………………..Full Article: Source

Differing views pose challenges towards creating global Sukuk market

Posted on 27 April 2012 by Laxman  |  Email|Print

Datuk Dr Nik Ramlah MahmoodDiffering views among international Shariah scholars on the trading mechanisms and the tradability of sukuk (Islamic bonds) pose a key challenge to achieving a global sukuk market.
Furthermore, differences in acceptability of certain sukuk structures are also limiting the marketability of such Islamic bonds on the international front, said Securities Commission Deputy Chief Executive Datuk Dr Nik Ramlah Mahmood. “In order to overcome this challenge, sukuk issuers intending to maximise their investor base are now opting for structures that are more broadly accepted by most jurisdictions,” she said……………………………………….Full Article: Source

Liquidity hampers sukuk

Posted on 27 April 2012 by Laxman  |  Email|Print

Lack of liquidity in the secondary market remains a key issue for sukuk, according to Securities Commission deputy chief executive Datuk Dr Nik Ramlah Mahmood.

She said there was a need to develop a more robust secondary market for sukuk that would enhance its appeal, especially to active investors such as fund managers………………………………………..Full Article: Source

Sukuk issuance set for a new record in 2012

Posted on 27 April 2012 by Laxman  |  Email|Print

The global Sukuk market could reach $125 billion this year. Malaysia will remain the dominant market despite a strong rise in issue in GCC countries.
Professor Dr Malik Muhammad M. al Awan, Sharia Adviser, Hong Leong Islamic Bank and Hong Leong MSIG Takaful Bhd, is quoted by Kuala Lumpur-based Business Times as saying total global Sukuk issuance in Q1 2012 reached $43 billion, of which some $30 billion was issued in Malaysia – the country accounts for some 73 per cent of the total Sukuk issued globally………………………………………..Full Article: Source

Dubai sukuk brings enough for budget gap

Posted on 27 April 2012 by Laxman  |  Email|Print

Proceeds from Dubai’s new $1.25bn, two-tranche Islamic bond provide enough funds for the Gulf emirate to manage its budget deficits and refinancing plans, a senior government official said.
Dubai priced on Wednesday a $600mn 5-year tranche at 4.9% and a $650mn 10-year tranche at 6.45% and the department of finance said the issues drew orders of more than $4.5bn……………………………………….Full Article: Source

DIFC Investments may be cut at S&P on Sukuk refinance risk

Posted on 27 April 2012 by Laxman  |  Email|Print

DIFC Investments LLC, which owns properties in Dubai’s tax-free financial center, may have its credit rating cut at Standard & Poor’s due to “heightened refinancing risk” on its $1.25 billion Islamic bond due in June.
DIFC Investments “has little room for delays in its efforts to secure a bank loan and government support to refinance the sukuk,” the rating agency said in a statement. The B+ long-term and B short-term ratings were placed on creditwatch with negative outlook………………………………………..Full Article: Source

Dubai’s ‘burn the banks’ tactic cheers investors

Posted on 27 April 2012 by Laxman  |  Email|Print

Healthy demand for Dubai’s first sovereign bond issue in nearly a year shows how pleased investors are by the emirate’s strategy of scrupulously honoring its public debt obligations while playing hardball in restructuring bank loans.
Dubbed “burn the banks, bail out the bond holders” by investment bank Exotix, the strategy seems to involve doing what it takes to ensure bond maturities of government-related enterprises are repaid on time. In February a unit of Dubai Holding, owned by the emirate’s ruler, said it was using internal cash flow to fully repay a maturing $500 million sukuk………………………………………..Full Article: Source

MAHB aims to keep AAA rating once sukuk facility utilised by mid 2013

Posted on 27 April 2012 by Laxman  |  Email|Print

Malaysia Airports Holdings Bhd (MAHB) is aiming to keep its prized AAA rating from RAM Rating Services Bhd once it completes the full drawdown of its Islamic debt issuance facility (sukuk) latest by the middle of next year, said its chief financial officer Faizal Mansor.

The airport operator has to date already drawn down RM2.5bil of the total sukuk allocation amounting to RM3.1bil, meaning that it has a balance of RM600mil left to use from the financing facility………………………………………..Full Article: Source

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

Posted on 27 April 2012 by Laxman  |  Email|Print

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

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

Bahrain Islamic Bank realizes net profit for the Q1 2012

Posted on 27 April 2012 by Laxman  |  Email|Print

In a press release issued by the Bank, Mr. Khalid Abdulla Al-Bassam - Chairman of the Board of Directors announced that the Board has approved the Financial Statements for the period ended on 31 March 2012 where the Bank registered BD543 thousand as net profit for the first quarter of this year compared to BD1.5m for the same period last year.
Khalid Al-Bassam then explained that BD2m in operating profit were realized compared to BD2.5m for the same period last year and the Board has taken provisions of BD1.5m as a precaution against any unforeseeable deterioration in asset values compared to BD1m for the same period last year. The income has all been generated from major core activities of the Bank………………………………………..Full Article: Source

Kuwait’s top Islamic bank Q1 profit dips

Posted on 27 April 2012 by Laxman  |  Email|Print

Kuwait Finance House , the emirate’s leading Islamic bank, said on Thursday its net profit in the first quarter of 2012 dropped 11.3 percent compared to the same period last year.

KFH posted a net profit of 20.1 million dinars ($72.1 million) in the first three months of this year compared to 22.6 million dinars ($81.3 million) in the same period of 2011, the bank said in a statement on the website of the bourse………………………………………..Full Article: Source

Qatar’s QInvest may own majority of new bank with EFG-Hermes

Posted on 27 April 2012 by Laxman  |  Email|Print

EFG-Hermes Holding SAE said Qatar’s QInvest LLC may hold a majority stake in a planned investment bank that would take over the Egyptian bank’s brokerage, investment banking and asset management businesses.

The investment bank would be the largest in “the Arab World, Africa, Turkey, South and Southeast Asia, with the possibility of QInvest holding majority stake,” Cairo-based EFG-Hermes said in a statement Thursday………………………………………..Full Article: Source

Gulf One advises on landmark debt refinancing deal

Posted on 27 April 2012 by Laxman  |  Email|Print

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

Takaful Ikhlas expects to maintain double-digit growth in Sabah

Posted on 27 April 2012 by Laxman  |  Email|Print

Takaful Ikhlas Sdn Bhd, confident with the takaful industry’s potential in Sabah, expects its business in the state to continue double-digit growth.
Executive Vice President (Business Operations) Wan Mohd Fadzlullah Wan Abdullah said the target for 2012 was to achieve RM25 million in contributions, an increase of RM10 million compared with last year. The company’s focus was still Kota Kinabalu, Sandakan dan Tawau, he told Bernama……………………………………….Full Article: Source

Al Khaleej Takaful Q1 net profits slump compared to 2011

Posted on 27 April 2012 by Laxman  |  Email|Print

Al Khaleej Takaful Group’s financial statements revealed a net profit of QAR 20.5 million in comparison to QAR 44 million for the corresponding period in 2011.
The Earnings per Share (EPS) amounted to QAR 1.44 as of 31 March 2012, versus QAR 3.09 of the same period in 2011. Total Takaful revenues were slightly down at QAR 38.5 million, compared to QAR 40.7 million in 2011. Total assets were slightly up at QAR 1.06 billion, compared to QAR 919.5 million in 2011………………………………………..Full Article: Source

Aman Insurance to showcase latest range of travel insurance products at Arabian Travel Market 2012

Posted on 27 April 2012 by Laxman  |  Email|Print

Dubai Islamic Insurance and Reinsurance Company (Aman), an Islamic Insurance provider in the UAE, has announced its participation at this year’s edition of the Arabian Travel Market (ATM), the industry’s leading travel and tourism exhibition, which will be held from April 30, 2012 to May 3, 2012 at the Dubai international Convention and Exhibition Centre (DICEC).
During the event, the company will be throwing the spotlight on its three new travel insurance offerings–Musafir, Shengen and the Haj & Umrah travel insurance products, which have been designed to offer high benefits to both individuals and families at a reasonable cost. (Press Release)

Global sukuk market to hit record US$125bln in 2012‎

Posted on 26 April 2012 by Laxman  |  Email|Print

The global sukuk market is expected to set a new record of close to US$125 billion this year, with Malaysia to remain the dominant market despite the anticipated issuance rise in the Gulf Cooperation Council (GCC) countries.

Prof Dr Malik Muhammad M. al Awan, Sharia Adviser, Hong Leong Islamic Bank and Hong Leong MSIG Takaful Bhd, said total global sukuk issuance in the first quarter this year amounted to US$43 billion, of which Malaysia’s sukuk issuance was US$30 billion………………………………………..Full Article: Source

Malaysia leads in sukuk

Posted on 26 April 2012 by Laxman  |  Email|Print

Malaysia would remain as the world leader in sukuk issuance, which is on course for another record-breaking year, according to Islamic finance experts.

US-based Global Studies Institute director Dr M. Mahmud Awan said that in the first quarter of 2012, global Islamic bond issuance reached a record US$43bil (RM131.7bil)………………………………………..Full Article: Source

Dubai launches $1.25 bln two-part Islamic bond

Posted on 26 April 2012 by Laxman  |  Email|Print

The Dubai government launched a $1.25 billion two-tranche Islamic bond on Wednesday, issue arrangers said, at the lower end of earlier indicated yield guidance, signalling healthy appetite for the emirate’s latest debt market foray.

Dubai launched a $600 million 5-year tranche at 4.9 percent and a $650 million 10-year tranche at 6.45 percent. Final guidance issued earlier on Wednesday had been tighter than initial indications from the previous day………………………………………..Full Article: Source

Al Rajhi plans debut sukuk sale for Malaysian growth

Posted on 26 April 2012 by Laxman  |  Email|Print

Saudi Arabia’s Al Rajhi Bank, the world’s largest Islamic lender, is turning to the ringgit-denominated debt market for its debut sukuk sale to fund the opening of new branches in Malaysia.

The Riyadh-based bank is considering the issuance as it plans a 20 per cent increase in annual profits in the Southeast Asian nation by adding to 23 existing outlets, Azrulnizam Abdul Aziz, chief executive officer of Al Rajhi’s Malaysian unit, said in an interview. The lender, which has never sold debt since it was founded 60 years ago, will also expand underwriting, said Mudassir Amray, head of wholesale banking in Kuala Lumpur………………………………………..Full Article: Source

Saudi Electricity Company successfully closed first international sukuk with $1.75bln issuance arranged by Deutsche Bank and HSBC

Posted on 26 April 2012 by Laxman  |  Email|Print

Saudi Electricity Company (SEC) rated A1/AA-/AA- (all Stable) the largest utility in the Middle East has announced the successful closure of a $1.75bn dual-tranche Sukuk issue, comprising a $500m with a five year maturity and a $1.25bn with a 10 year maturity.
This transaction led by Deutsche Bank and HSBC is the inaugural international Sukuk issuance by SEC and the largest international debt capital markets issuance from Saudi Arabia………………………………………..Full Article: Source

Bahrain eyes sovereign bond, not imminent

Posted on 26 April 2012 by Laxman  |  Email|Print

Bahrain, troubled by ongoing social unrest, is testing whether it could draw investors into a potential sovereign bond sale, although the issuance is unlikely to be imminent, government and banking sources said on Wednesday.

A year of clashes between mostly Shi’ite-led protesters and Sunni government security forces has been weighing on the small non-OPEC oil exporter, eroding capital parked in its mutual funds, while fiscal handouts have raised the country’s vulnerability to a potential oil price drop………………………………………..Full Article: Source

Gulf One arranges $23.5 mln Islamic debt refinancing deal

Posted on 26 April 2012 by Laxman  |  Email|Print

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

Nearly 80pct of Islamic firms created a risk department in the past five years

Posted on 26 April 2012 by Laxman  |  Email|Print

The number of Islamic financial institutions employing dedicated risk managers has increased greatly since 2007, according to Deloitte Middle East’s first Islamic Finance Risk Intelligence report.
The report is based on a survey and case studies developed during the second half of 2011, on 20 Islamic Financial institutions from the Middle East and south east Asia with aggregate assets of more than $50bn………………………………………..Full Article: Source

Takaful Ikhlas to recruit 1,000 new agents in 2012

Posted on 26 April 2012 by Laxman  |  Email|Print

Takaful Ikhlas Sdn Bhd plans to increase the number of agents to 5,000 this year from 4,000 previously. President/CEO Datuk Syed Moheeb Syed Kamarulzaman said the company would constantly expand its business network, and recruiting new agents was one of the ways.
“Actually, we don’t just look at the company’s growth through a higher number of agents but we also put emphasis on growth in terms on the productivity and quality of each agent,” he told Bernama during the ongoing Malaysia Unit Trust Week 2012 exhibition at the Kota Kinabalu Sports Complex in Likas………………………………………..Full Article: Source

Bermuda seen as promising takaful player

Posted on 26 April 2012 by Laxman  |  Email|Print

As it seeks to attract insurance and reinsurance business from around the world, the Bermuda market has the potential to become a player in takaful, the emerging Islam-compliant insurance sector, according to one industry expert.
Belaid Jheengoor, director of PricewaterhouseCoopers in Bermuda, said many people make the mistake of assuming that Bermuda is too far from centers of Muslim population to be relevant to their financial services markets………………………………………..Full Article: Source

Turkey showcases role of Islamic money and capital markets at 9th Annual IFSB Summit

Posted on 26 April 2012 by Laxman  |  Email|Print

Turkey, the host country of the upcoming 9th Annual Summit of the Islamic Financial Services Board (IFSB), which is scheduled to be held at the Swissotel, The Bosphorus in Istanbul on 16 - 17 May 2012, is positioning itself as an important Islamic capital and money market.
The Central Bank of Turkey, which is hosting this year’s IFSB Summit, is organising as a pre-Summit event, a landmark Country Showcase in association with the Yildiz Technical University in Istanbul on the pertinent theme “The Role of Interest-free Financial Instruments in the Money and Capital Markets.”……………………………………….Full Article: Source

Dana Gas said to hire Blackstone to restructure Sukuk

Posted on 25 April 2012 by Laxman  |  Email|Print

Dana Gas PJSC (DANA) hired Blackstone Group LP, the world’s largest private-equity firm, to advise on the $1 billion restructuring of Islamic bonds maturing in October, three people familiar with the matter said.

Deutsche Bank AG (DBK) is also advising the company, two people with knowledge of the matter said in January. Dana Gas, whose parent Crescent Petroleum Co. owns 3 percent of Hungarian refiner Mol Nyrt., (MOL) said Jan. 17 it would continue to meet debt obligations and appointed an unidentified financial adviser………………………………………..Full Article: Source

Dubai issues dual-tranche Sukuk

Posted on 25 April 2012 by Laxman  |  Email|Print

Thomas ChristieDubai plans to launch a dual-tranche Islamic bond imminently, the banks arranging the issue said on yesterday, and is expected to attract healthy investor demand. The five- and ten-year benchmark sukuk is Dubai’s first Islamic bond since 2009. Initial guidance was seen around 5 and 6.5 per cent respectively for the two tranches.
Sources told Reuters earlier yesterday that the emirate had mandated four banks — Citigroup, HSBC, National Bank of Abu Dhabi and Dubai Islamic Bank — for a bond that could raise up to $1.5 billion (Dh5.5 billion)………………………………………..Full Article: Source

Dubai plans $1bln Sukuk as economy accelerates

Posted on 25 April 2012 by Laxman  |  Email|Print

Dubai is returning to the bond markets for the first time in almost a year with a planned US$1 billion (Dh3.67bn) debt sale. The emirate has hired four banks to handle the sale of the Islamic bonds, known as sukuk, as it emerges from a financial crisis that culminated with the $24.9bn restructuring of Dubai World debt between 2009 and 2010.
“The move could lead to lower borrowing costs for UAE companies if the Government’s bond sale meets with high demand,” said Debashis Dey, the head of capital markets at Clifford Chance, a law firm………………………………………..Full Article: Source

Dubai releases guidance on dual-tranche Sukuk

Posted on 25 April 2012 by Laxman  |  Email|Print

The government of Dubai has announced guidance on a US dollar dual-tranche sukuk at 5% area for a five-year tranche and 6.50% area for a 10-year.

The deal is Reg S only format and will be listed on the Dubai Financial Market. Citigroup, Dubai Islamic Bank, HSBC and NBAD are the lead managers. Timing is as soon as possible………………………………………..Full Article: Source

Al Rajhi plans maiden Sukuk for M’sian ops

Posted on 25 April 2012 by Laxman  |  Email|Print

Saudi Arabia’s Al Rajhi Bank, the world’s largest Islamic lender, is turning to the ringgit-denominated debt market for its debut sukuk sale to fund the opening of new branches in Malaysia.
The Riyadh-based bank was considering the issuance as it planned a 20% increase in annual profits in the country by adding to 23 existing outlets, Azrulnizam Abdul Aziz, chief executive officer of Al Rajhi’s Malaysian unit, said in an interview………………………………………..Full Article: Source

Indonesia raises 1.82trln rupiah in sukuk auction, above target

Posted on 25 April 2012 by Laxman  |  Email|Print

Indonesia raised 1.82 trillion rupiah ($198.12 million) in a sukuk auction on Tuesday, above a 1 trillion rupiah target, the finance ministry said in a statement. It sold six and 15-year project-based sukuk, with no winning bids for 10 and 25-year project-based sukuk.
Foreign investors bought 930 billion rupiah of sukuk as of April 5, after selling 550 billion rupiah in March, the latest data from the debt office shows………………………………………..Full Article: Source

Saudi Electricity Company successfully closed $1.75 bln international Sukuk

Posted on 25 April 2012 by Laxman  |  Email|Print

Saudi Electricity Company, rated A1/AA-/AA- (all Stable) and the largest utility in the Middle East, has announced the successful closure of a $1.75 billion dual-tranche Sukuk issue, comprising $500 million with a five year maturity and $1.25 billion with a 10 year maturity.
The transaction led by Deutsche Bank and HSBC is the inaugural international Sukuk issuance by SEC and the largest international debt capital markets issuance from Saudi Arabia………………………………………..Full Article: Source

Deloitte Middle East launches first Islamic Finance Risk Intelligence Report

Posted on 25 April 2012 by Laxman  |  Email|Print

In light of the ongoing global financial climate, most world markets and sectors continue to be adversely impacted, including the Islamic finance sector, which is currently facing regulatory and practice-related reforms.
report recently published by the Deloitte Middle East Islamic Finance Knowledge Center (IFKC), entitled Empowering Risk Intelligence in Islamic finance: Managing Risk in Uncertain Times addresses and investigates the important issues in practice and regulation in Islamic finance in the current market challenges………………………………………..Full Article: Source

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