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Islamic Finance Briefing - Archive | September, 2012

Strong legal framework needed for Islamic financing

Posted on 28 September 2012 by Laxman  |  Email|Print

Datuk Ahmad Zaini OthmanDespite the recent global economic crisis, the Islamic finance industry has continued pushing forward strongly. Entering 2012, the industry increased its total assets by 23.8 per cent by the end of 2011— comprising a hefty 22.4 per cent of the total assets of the banking system.
Global recognition has not been in short supply either as evidenced by The Banker Magazine’s 2011 rankings of top Islamic financial institutions which saw 21 Malaysian institutions listed. By all appearances, Malaysia’s Islamic finance industry is well on its way to fulfilling its aspirations to becoming an international Islamic financial centre. Is it all hunky dory?……………………………………….Full Article: Source

New Islamic banks in Oman banks flex muscles

Posted on 28 September 2012 by Laxman  |  Email|Print

New Islamic banks in Oman are bolstering their balance sheets to challenge the country’s larger conventional lenders after the sultanate allowed sharia-compliant lending for the first time last year.
This month, Al Izz Islamic bank, Oman’s second dedicated Islamic bank, opened subscription for its initial public offering of 40 per cent of the lender. So far, it says interest has been strong. Before that, in June, Bank Nizwa, the first Islamic bank in Oman, attracted 681m rials ($1.77bn) of bids, 11 times what was needed, in a successful share sale………………………………………..Full Article: Source

North Africa to witness gradual growth in Islamic banking

Posted on 28 September 2012 by Laxman  |  Email|Print

Supportive socio-political factors and economic incentives should accelerate the growth of Islamic banking activities in North Africa from current low levels, according to a new report published by Standard & Poor’s Ratings Services titled “Prospects For Islamic Banking In North Africa Improve Following The Arab Spring.”
Islamic banking started to emerge in North Africa in the 1970s when Egypt was among the first countries in the Arab world to authorize the establishment of pioneer Islamic banks. However, the sector is still branded as a niche market in the region, with an overall market share well below 5% of total banking assets. We think the change in political landscape following the Arab Spring should rekindle the development of Islamic banking in the region………………………………………..Full Article: Source

Gulf investors working on Leeds United takeover

Posted on 28 September 2012 by Laxman  |  Email|Print

A Bahraini investment bank is working on a deal to buy England’s Leeds United Football Club, in what could be the latest acquisition of a European soccer team by oil-rich Gulf investors.
Gulf Finance House, an Islamic investment bank from the tiny Gulf island state, said Thursday one of its Dubai-based subsidiaries will “lead and arrange the acquisition of Leeds City Holdings, the parent company of LUFC.” A person familiar with the matter said the transaction price would be about £50 million ($80.8 million), and that GFH Capital is acting on behalf of “investors from the Gulf,” without elaborating………………………………………..Full Article: Source

Saadiq: Plenty of opportunities to tap

Posted on 28 September 2012 by Laxman  |  Email|Print

As Malaysia aims to increase Islamic assets to 40 per cent of its total banking assets, Saadiq, the Islamic banking arm of Standard Chartered (StanChart) Bank is confident that it too could bank on this ambitious target and significantly grow its Islamic banking assets here.
Like other international banks, StanChart does not publicly share growth targets but Saadiq Malaysia chief executive officer Wasim Saifi said in the first half of this year, 12 per cent of StanChart Malaysia’s revenue was contributed by Islamic banking business compared to 11 per cent in 2011………………………………………..Full Article: Source

Jeddah-based group lobbies for interest-free banking in India

Posted on 28 September 2012 by Laxman  |  Email|Print

The Jeddah-based Indian Forum for Interest-Free Banking has urged Prime Minister Manmohan Singh to clear huddles for granting license for Shariah-compliant banks and financial institutions to operate in India.
In a petition submitted to the prime minister at the Emerging Kerala Global Connect, a biennial summit of investors and policymakers, held in the southern port city of Kochi last week, they said it would open floodgates infrastructural funding for India. Islamic banking assets are estimated at more than $ 1.5 trillion worldwide and it is operational in 52 countries, including the US, UK, Australia, France, Singapore, Japan and China………………………………………..Full Article: Source

Arcapita asks for Shariah-compliant bankruptcy finance

Posted on 28 September 2012 by Laxman  |  Email|Print

Arcapita Bank has asked US Bankruptcy Judge Sean H. Lane to approve its request for a $150 million debtor-in-possession financing package from Silver Point Finance. Arcapita said it had used up its cash reservers and needs the funding to assist its Chapter 11 exit.
Law360 reports that the Bahrain-based Islamic investment bank has requested authorisation to commit to a deal with Silver Point. Fees involved with the deal amount to $2.25 million………………………………………..Full Article: Source

Egypt’s FJP considers rules to allow sukuk

Posted on 28 September 2012 by Laxman  |  Email|Print

Egypt’s Freedom and Justice Party is consulting with other political parties and the financial industry about the possibility of introducing rules allowing the issue of sukuk (Islamic bonds), a party official said Reuters reported
“We started weeks ago to discuss details of how to permit the issuance of sukuk, instead of submitting a full bill that would need to be approved by parliament,” Ahmed al-Najjar told Reuters on Tuesday………………………………………..Full Article: Source

Turkey’s Bank Asya to issue sukuk worth up to 150 mln lira

Posted on 28 September 2012 by Laxman  |  Email|Print

Turkish Islamic lender Bank Asya said on Thursday it had mandated investment bank Is Yatirim for a sukuk issue worth up to 150 million lira ($84 million) with a one-year maturity.
The lender made the statement to the Istanbul Stock Exchange………………………………………..Full Article: Source

Clifford Chance advises on world’s largest dim sum Sukuk

Posted on 28 September 2012 by Laxman  |  Email|Print

Clifford Chance has advised Bank of America Merrill Lynch, CIMB and HSBC as joint lead managers on Axiata Group’s MYR 1 billion Sukuk issuance. The Sukuk is the largest RMB-denominated Sukuk and the second Sukuk to date to be issued in the dim sum bond market. The Sukuk is listed on Bursa Malaysia Securities (under the Exempt Regime) and the Singapore Stock Exchange.
The issuance is the inaugural issuance from Axiata’s $1.5 billion multi-currency Sukuk Issuance Programme established in August this year, on which Clifford Chance also advised………………………………………..Full Article: Source

Renminbi bond issuance seen growing with China-Malaysia trade

Posted on 28 September 2012 by Laxman  |  Email|Print

Growing trade between China, the world’s second largest economy, and Malaysia will encourage more yuan-denominated fundraising through the issuance of conventional and Islamic bonds, Malaysia’s central bank chief said on Thursday.
China has become Malaysia’s largest trading partner in recent years, importing products that range from palm oil to rubber tyres………………………………………..Full Article: Source

Should you get an Islamic mortgage?

Posted on 28 September 2012 by Laxman  |  Email|Print

Islamic banking which follows Shariah law has been in operation since the enactment of the Islamic Banking Act in 1983. In these 30 years, Malaysia has been practising the dual-banking system - Islamic and conventional.
Islamic principles dictate that money lending (dealing with interest) as well as investing in businesses that are considered haram (unlawful) are prohibited. Islamic finance is all about accumulating all the available resources (from savings) and providing financing based on pre-determined profits rather than dealing with interest………………………………………..Full Article: Source

Waqf Fund ’supporting industry’

Posted on 28 September 2012 by Laxman  |  Email|Print

The Waqf Fund, the Bahrain-based special fund to support Islamic finance training, education and research, has enhanced its role by supporting the industry in various ways during the last year. That was the message from fund chairman and Central Bank of Bahrain executive director of banking supervision Khalid Hamad at the annual Waqf meeting.
“We are supporting Bahrain University in their Bachelor of Arts in Sharia for banking and finance, a recently launched four-year bilingual programme aimed at producing capable human resources for the Islamic finance industry who are well-versed in Sharia as well as banking, finance, accounting and business,” he said………………………………………..Full Article: Source

Malaysia takaful firms target Indonesia

Posted on 28 September 2012 by Laxman  |  Email|Print

Malaysian Islamic insurers are expanding into neighboring Indonesia to tap growth three times as fast as in their home market, where Standard & Poor’s predicts tighter rules will curb expansion.
Great Eastern Takaful Sdn Bhd, the Shariah-compliant subsidiary of Malaysia’s biggest insurer that already has a Jakarta-based unit, will target low-income people in Southeast Asia’s largest economy, Chief Executive Officer Mohamad Salihuddin Ahmad said in a Sept. 13 interview. Etiqa Takaful Bhd wants to buy an Indonesian Islamic insurer, Chief Commercial Officer Shahril Azuar Jimin said in an interview last week………………………………………..Full Article: Source

Islamic finance in bloom

Posted on 28 September 2012 by Laxman  |  Email|Print

Investor demand for Shariah-compliant products, both corporate and sovereign, has grown significantly in recent months. In particular, sukuks (financial certificates seen as the equivalent of Islamic bonds) have been issued at record amounts on the back of cheap borrowing costs.
Bloomberg’s new index, developed with the Association of Islamic Banking Institutions Malaysia (AIBIM) and the stock exchange Bursa Malaysia, aims to offer a benchmark for investors in Ringgit-denominated sukuks in Malaysia, a country that has styled itself as a global hub for Islamic finance………………………………………..Full Article: Source

Zeti outlines growing potential to raise funds in Chinese currency

Posted on 28 September 2012 by Laxman  |  Email|Print

There is more renminbi (yuan) financing in the pipeline after the two issuances of offshore yuan sukuk out of Malaysia and a yuan bond issuance by Malaysian corporations, according to Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz.
The reason, she said, for this was that there was greater potential to raise funds in the currency (yuan), especially investments in China and bilateral cross-border activities between Malaysia and China………………………………………..Full Article: Source

Islamic hacktivists’ bank attack claims gain credibility

Posted on 28 September 2012 by Laxman  |  Email|Print

The denial of service attack that disrupted the Wells Fargo & Co. electronic banking operations Tuesday was the fourth since last week. And it appears to lend some credence to threats and claims that the Izz al-Din al-Qassam Cyber Fighters, the military wing of Hamas, the Islamic party that governs the Gaza Strip, are behind them.
The group claimed responsibility for DoS attacks against Bank of America, JPMorgan Chase and Citigroup Inc. that disrupted online operations, and said the attacks would continue “until the Erasing of that nasty movie” — a reference to a trailer of the independent film “Innocence of Muslims,” which Muslims say insults the Prophet Muhammed………………………………………..Full Article: Source

Egypt’s FJP considers rules to allow sukuk-official

Posted on 27 September 2012 by Laxman  |  Email|Print

Egypt’s Freedom and Justice Party is consulting with other political parties and the financial industry about the possibility of introducing rules allowing the issue of sukuk (Islamic bonds), a party official said.
“We started weeks ago to discuss details of how to permit the issuance of sukuk, instead of submitting a full bill that would need to be approved by parliament,” Ahmed al-Najjar told Reuters on Tuesday………………………………………..Full Article: Source

New Bursa rules to spur bonds, sukuk trade

Posted on 27 September 2012 by Laxman  |  Email|Print

Bursa Malaysia has introduced the rules to facilitate exchange-traded bonds and sukuks (ETBS) to be listed and traded on Bursa Securities to attract a new segment of investors into the market.
In the past, bonds had been primarily accessible to institutions and high net worth individuals, the exchange said in a statement today. The relevant rule changes to the Listing Requirements, Rules of Bursa Securities and the Rules of Bursa Depository had been made available for reference at the exchange’s website it said………………………………………..Full Article: Source

Axiata issues largest dim sum sukuk

Posted on 27 September 2012 by Laxman  |  Email|Print

Allen & Overy Singapore and Zaid Ibrahim & Co have advised Axiata Group Berhad on its one billion yuan sukuk issuance, the largest RMB-denominated sukuk, with Clifford Chance and Adnan Sundra & Low advising Bank of America Merrill Lynch, CIMB, and HSBC as joint lead managers.
The sukuk, only the second to be issued in the dim sum bond market, are listed on Bursa Malaysia Securities Berhad and the Singapore Stock Exchange. The issuance is the inaugural issuance from Axiata’s $1.5 billion multicurrency sukuk issuance programme established in August this year………………………………………..Full Article: Source

Qatar Islamic Bank plans dollar-denominated Sukuk

Posted on 27 September 2012 by Laxman  |  Email|Print

A whistle-stop tour of Singapore, UAE and London as Deutsche Bank, HSBC and QInvest LLC are mandated for the Islamic bond. Qatar Islamic Bank plans to issue a dollar-denominated Islamic bond, or sukuk, under its recently approved $1.5 billion sukuk programme, lead arrangers said on Wednesday.
Deutsche Bank, HSBC, Standard Chartered and QInvest LLC are mandated for the sukuk, a document from the lead arrangers showed. No details were provided on the size of the issue………………………………………..Full Article: Source

Oman’s Islamic banking assets to touch OMR 2 bln by 2012

Posted on 27 September 2012 by Laxman  |  Email|Print

Omani Islamic banks’ assets are predicted to pass OMR 2 billion by 2012, according to a feasibility study by Al Izz Bank. The study indicates that the basic incentives for Islamic monetary services in the Sultanate are seen driven by a number of factors including country’s Muslim majorioty population.
The study showed that 70 per cent of respondents were interested in opening an Islamic savings account within the next 12 months. Seventy seven per cent indicated they would choose Islamic banking within a couple of years. The study identified the challenge of Islamic finance being a young industry which needs time to develop………………………………………..Full Article: Source

Islamic investment bank in Egypt wants to buy brokerage

Posted on 27 September 2012 by Laxman  |  Email|Print

Cairo-based Ridge Islamic Capital is seeking to buy a local brokerage as part of its expansion plan, so that it can offer a full range of sharia-compliant financial services in the country, a company official told Reuters.
“We want to start providing sharia-compliant brokerage services during the fourth quarter of 2012,” Ahmed Rizkallah, country manager of Ridge Islamic, told Reuters on Wednesday………………………………………..Full Article: Source

Islamic financing emerging as credible alternative system

Posted on 27 September 2012 by Laxman  |  Email|Print

Islamic financing, which currently covers about $1trn in assets, may be emerging as a credible alternative industry to complement the global financial system. The market has been growing at 10-15% annually as global demand for Syariah-compliant products and services has increased.
Speaking at the Global Islamic Finance Forum in Kuala Lumpur, World Bank MD Mahmoud Mohieldin said Investors are increasing seeking to diversify into other alternative assets and are brushing aside prejudices that some may have about Islamic products and services………………………………………..Full Article: Source

Strengthening the platform for Islamic finance in Indonesia

Posted on 27 September 2012 by Laxman  |  Email|Print

It has been reported that Indonesian Islamic banks like Bank Mandiri have offered strategic partnerships with foreign investors in its plantation projects, saying this would strengthen the Islamic banking platform.
“Foreign companies can join us in loan syndication to (jointly) finance the medium and large scale projects,”said Bank Shariah Mandiri CEO Yuslam Fauzi during one of the GIFF industry specific dialogues held in September 2012………………………………………..Full Article: Source

Azerbaijan to consider possibilities of an interest free financial system

Posted on 27 September 2012 by Laxman  |  Email|Print

The use of an interest free financial system could prevent some economic cataclysms. “Though this system is only 40 years old, a positive tendency in the development of an Islamic interest free financial system is to be considered. Reviewing the possibilities of using such a system is an important factor for Azerbaijan, where 90 per cent of the population are Muslims”, Jeyhun Nagiyev, the director general of Ansar Leasing said.
Nagiyev added that for development of this financing direction in Azerbaijan the issue has to be considered both not only from the legislative point of view, but also from the scientific one………………………………………..Full Article: Source

Malaysia’s takaful market healthy, sustainable

Posted on 27 September 2012 by Laxman  |  Email|Print

Malaysia’s takaful industry appears to be more healthy and sustainable compared to its peers in other countries as its development is underpinned by strong fundamentals, says Standard & Poor’s Ratings Services.
The ratings agency said on Wednesday it was more positive on the developments in Malaysia, which is the largest takaful market in southeast Asia. “They are supported by more-sophisticated regulatory oversight and the stronger investment profile of the industry,” it said………………………………………..Full Article: Source

MENA insurance market: Regulatory change coming

Posted on 27 September 2012 by Laxman  |  Email|Print

A report from A.M. Best examines the current state of the insurance market in the Middle East and North Africa (MENA) region. It notes that “over the past decade, the insurance industry has experienced strong growth in terms of premiums. The main drivers of this growth have been the significant economic developments in most countries in the region, combined with the introduction of compulsory insurance covers in many markets.
“At the same time, the number of insurance companies operating in these markets has dramatically increased as investors have come to view insurance as a growth market that delivers good returns to their investments. Many of the new investors were attracted by the introduction of takaful, which provided the opportunity to bring insurance to parts of the population that either had not perceived the need for insurance or were unable to purchase it.”……………………………………….Full Article: Source

Turkey’s Bank Asya to issue up to 150 mln lira sukuk in 2012

Posted on 26 September 2012 by Laxman  |  Email|Print

Turkish Islamic lender Bank Asya said on Tuesday that it plans to issue a sukuk, or Islamic bond, of up to 150 million lira ($83 million) by the end of 2012.
The lender said in a statement that the amount raised from the issuance would be used to finance investments………………………………………..Full Article: Source

Cagamas issues RM500mln Islamic commercial paper

Posted on 26 September 2012 by Laxman  |  Email|Print

Cagamas Bhd has issued a RM500 million three-month Islamic commercial paper, which will be listed and tradable under the Scripless Securities Trading System.
The unsecured promissory note will be redeemed at its full nominal value on maturity, ranking pari passu among Cagamas’ other papers and unsecured obligations, said the national mortgage corporation in a statement………………………………………..Full Article: Source

UAE lender FGB plans benchmark bond sale - sources

Posted on 26 September 2012 by Laxman  |  Email|Print

First Gulf Bank (FGB), the second-largest lender by market value in the United Arab Emirates, has hired five banks for a new benchmark-sized bond sale, three sources familiar with the matter said on Tuesday.
FGB picked Citigroup Inc, HSBC Holdings, National Bank of Abu Dhabi, Deutsche Bank and Standard Chartered Plc for the deal, which is expected to be at least $500 million in size………………………………………..Full Article: Source

Bahrain’s Gulf International Bank updates $4 bln bond programme

Posted on 26 September 2012 by Laxman  |  Email|Print

Gulf International Bank , a Bahrain-headquartered lender, has published an updated prospectus for its $4 billion euro medium term note (EMTN) programme on the London Stock Exchange.
Proceeds from any potential debt issue will be for general corporate purposes, the prospectus said………………………………………..Full Article: Source

Islamic asset management - Malaysia’s success story

Posted on 26 September 2012 by Laxman  |  Email|Print

Malaysia has been a pioneer in the Islamic finance space. Bucking the trend of underperformance of much of the world in 2010, the Malaysian Islamic banking system remained resilient, with banks registering a profit. Total deposits for the Malaysian Islamic banking system increased from RM235.9bn in end 1999 to RM277.5bn a year later, according to the Bank Negara Malaysia.
Malaysia also remained the global leader in sukuk issuance, with a 66% market share or $94bn of total global sukuk outstanding as at end-2010. Shari’ah retail funds under management grew at a compound annual growth rate of nearly 26% over five years, according to Cerulli Associates. So what has been the key to Malaysian growth?……………………………………….Full Article: Source

Islamic assets seen jumping to $3trln on Asia, GCC

Posted on 26 September 2012 by Laxman  |  Email|Print

Global Islamic financial assets will double by 2015 to as much as $3tn as demand for the securities in the Gulf Co-operation Council and Malaysia lures issuers to the market, Standard and Poor’s has said.
Yields on Shariah-compliant bonds, known as sukuk and paying returns on assets to comply with Islam’s ban on interest, dropped to record lows this month, prompting issuers including the Turkish government to sell the securities. Islamic financial assets are currently valued at $1.3tn, S&P financial services associate Paul-Henri Pruvost said………………………………………..Full Article: Source

Aircraft investment, Islamic finance key to growth: Boeing

Posted on 26 September 2012 by Laxman  |  Email|Print

Boeing Capital Corporation ‘BCC’ stressed on the need for airline to invest strategically into new aircraft and the long-anticipated growth of Islamic financing’s role in commercial airplane deliveries is also coming to fruition. Airplanes have been regarded as ideal for lending under Shariah law given their mobile nature and asset attractiveness.
These discussions were highlighted as financial institutions and airlines in the Middle East have significantly increased their capital investments in new Boeing commercial airplanes over the past two years, thus realizing substantial rewards for their investors as demand for new airplanes continues to expand………………………………………..Full Article: Source

Islamic finance arrives in Melbourne

Posted on 26 September 2012 by Laxman  |  Email|Print

It certainly looks as if things are hotting up in Australia for Islamic finance (see elsewhere in this issue of news of what Central Queensland University is up to). Finsia, the Financial Services Institute of Australasia, is the latest body to join the scrum and will be holding seminars on Islamic finance in Melbourne on Wednesday 17 October and in Sydney on Tuesday 30 October.
The promotional blurb for the events promise that the seminars can help you, ‘Find out how your organisation could benefit from one of the fastest growing segments of the global financial services industry.’……………………………………….Full Article: Source

DIB announces new investment products

Posted on 26 September 2012 by Laxman  |  Email|Print

Dubai Islamic Bank (DIB) announced on Tuesday launched its Al Islami Aurum+ 1 Dirham Certificate, an innovative investment product that provides strategic exposure to the commodity markets with the peace of mind that comes with a high level of capital protection.
Developed by the Royal Bank of Scotland (RBS), the Al Islami Aurum+ 1 Dirham Certificate attempts to generate returns in any market environment by taking exposure and switching between oil and gold………………………………………..Full Article: Source

Kuwait Islamic Bank implements the cloud

Posted on 26 September 2012 by Laxman  |  Email|Print

It has been reported that Kuwait Islamic Bank (KIB) is being recognized by Microsoft for being the first Islamic bank to implement the Private Cloud Model. The Cloud has been made famous by Apple, on the premise that the most convenient way to keep information is in a virtual database.
Microsoft’s Private Cloud is a new model for delivery which turns the infrastructure of a data center, such as one at a bank, into a single cloud allowing for cloud computing. This will allow KIB to operate more smoothly and to host new application that previous IT models could not support………………………………………..Full Article: Source

S&P says takaful growth prospects are diverging

Posted on 26 September 2012 by Laxman  |  Email|Print

Takaful is most prevalent in the Gulf Cooperation Council (GCC) region and southeast Asia, but the sector has developed quite differently in these regions. The business lines that predominate in these two regions are distinctly different, as are the sources of growth and the investment models.
Within this global growth pattern, we expect the GCC will to continue to significantly grow faster than local and global conventional insurance, while southeast Asia is likely to see constrained growth due to tightening regulatory requirements in Malaysia, its largest market………………………………………..Full Article: Source

High-risk takaful strategies cause for concern, says S&P

Posted on 26 September 2012 by Laxman  |  Email|Print

Global credit rating agency Standard and Poor’s has expressed concern on the long-term profitability of takaful providers in the Gulf due to “widespread” use of high-risk investment strategies.
However, it forecast that over the next 12-18 months, takaful contributions in the GCC region would “significantly outgrow” premiums in the local conventional insurance industry, as well as the global insurance industry………………………………………..Full Article: Source

Oman: Insurers upset over norms for takaful firms

Posted on 26 September 2012 by Laxman  |  Email|Print

Local insurance companies have expressed serious concern on the move to stipulate a minimum RO10 million capital for takaful firms as it will pose a major entry barrier for local companies.
The insurance firms, which suspect an edge for foreign companies to enter Oman due to high capital requirement, prefer window operations in takaful business like the proposed regulation in banking sector………………………………………..Full Article: Source

Honour for Syarikat Takaful Malaysia’s managing director

Posted on 26 September 2012 by Laxman  |  Email|Print

Recognising his contribution towards the development of the takaful and Islamic finance industry, Syarikat Takaful Malaysia group managing director Datuk Mohamed Hassan Kamil has been awarded the “Jewels of Muslim World Award” by the OIC Today magazine.
“I hope the award will enhance and empower Takaful Malaysia’s status as a preferred choice for insurance in providing financial protection service based on Islamic principles and values,” said Mohamed Hasan, who is also chairman of PT Syarikat Takaful Indonesia………………………………………..Full Article: Source

Gulf to spur $2trln boom in Islamic bond deals

Posted on 25 September 2012 by Laxman  |  Email|Print

Paul-Henri PruvosThe global Islamic finance market will more than double in value during the next three years to more than US$2 trillion (Dh7.34tn), the ratings agency Standard & Poor’s says, as the Arabian Gulf embarks on a renewed deal-making boom.
The prediction came as banks reported unusually early demand in Oman from retail investors on the opening days of alizz islamic bank’s first public share sale. Islamic financial markets in the Gulf are experiencing “exuberant growth”, said Paul-Henri Pruvost, a financial analyst at S&P………………………………………..Full Article: Source

UAE third in global sukuk

Posted on 25 September 2012 by Laxman  |  Email|Print

The GCC sukuk market has reached an “inflection point” in terms of new issuance, propelled by a fast growing appetite for infrastructure finance as the UAE emerged as the third global growth market for Islamic bonds, Standard & Poor’s said on Monday.
In the GCC, the UAE has become the second market for sukuk in the year to July with $5.3 billion. Saudi Arabia now leads the GCC ranks with $8.8 billion, replacing Qatar, which is currently in third with $4 billion. The kingdom is currently the second-largest global issuer behind Malaysia at $51.6 billion, after the government made moves to support Islamic finance………………………………………..Full Article: Source

Global sukuk sales set for record after Turkish debut

Posted on 25 September 2012 by Laxman  |  Email|Print

Global Islamic bond sales are set for a record, helped by Turkey’s debut sovereign issue last week, as demand from Asia and the oil-rich Arabian Gulf pushes yields lower.
Sales jumped to $36bn this year, just shy of the full-year record of $36.7bn reached in 2011, according to data compiled by Bloomberg. Issues this year could “easily hit” $50bn as attractive pricing is prompting more issuers to tap the market, according to Commerzbank………………………………………..Full Article: Source

Dewa to tap debt markets in 2013

Posted on 25 September 2012 by Laxman  |  Email|Print

State utility Dubai Electricity and Water Authority (Dewa) may issue an Islamic bond, or sukuk, in 2013, as part of its refinancing plans, the company’s chief executive said on Monday.
“We’re thinking about sukuk, not all of it but it will be a mix. There will be sukuk definitely but there will be other products also, for example we will have securitisation,” Saeed Mohammed al-Tayer told reporters when asked about issuance plans for 2013………………………………………..Full Article: Source

Central Bank of Bahrain Sukuk Al-Salam securities oversubscribed

Posted on 25 September 2012 by Laxman  |  Email|Print

The Central Bank of Bahrain (CBB) announces that the monthly issue of the Sukuk Al-Salam Islamic securities for the BD18m issue, which carries a maturity of 91 days, has been oversubscribed by 248%.
The expected return on the issue, which begins on 26 September 2012 and matures on 26 December 2012, is 1.20%. (Press Release)

Jordan hires for dollar Eurobond

Posted on 25 September 2012 by Laxman  |  Email|Print

The Hashemite Kingdom of Jordan, rated Ba2/BB, has hired Citigroup, HSBC and JP Morgan for a forthcoming dollar Eurobond issue, a source at the Finance Ministry said.
The sovereign is seeking to raise a minimum of USD1bn and the deal is likely to come to market at the end of October or beginning of November. The sovereign may also issue a sukuk next year, added the source. ……………………………………….Full Article: Source

Debts weigh on Jebel Ali free-zone operator as profit slips

Posted on 25 September 2012 by Laxman  |  Email|Print

Earnings sank by a fifth at Jebel Ali Free Zone Authority (Jafza) during the first half of the year as the higher cost of servicing its debts weighed on income after it was thrown a lifeline by banks this year.
The free-zone operator, a unit of Dubai World, dodged a showdown with creditors by successfully refinancing a Dh7.5 billion (US$2.04bn) sukuk due for repayment in November. But following the debt deal, net profits for the first half of the year fell to Dh212.2 million, a decline of 19.8 per cent compared with the same period a year earlier………………………………………..Full Article: Source

Kuwait’s Commercial Bank to liquidate investment unit

Posted on 25 September 2012 by Laxman  |  Email|Print

CBK Capital is believed to have $53.5 million in capital and manages a Kuwaiti stocks fund and an Islamic finance fund. Commercial Bank of Kuwait (CBK) said on Sunday it plans to liquidate its investment unit, according to a bourse filing.
The bank said in a statement the move to close CBK Capital, a fully-owned subsidiary which manages the bank’s proprietary investment portfolio, would not have a negative impact on the bank’s financial position but gave no details………………………………………..Full Article: Source

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