Indonesia has postponed Islamic bond sales for the past eight weeks as legislators delay approvals needed for new securities. The government postponed auctions of rupiah sukuk due in five, 10 and 15 years on May 31 and June 14. Local companies have sold Rp 200 billion ($23 million) of Islamic bonds this year, compared with Rp 700 billion in 2010.
Investors are asking for higher yields to hold the sukuk because of concern they will struggle to find buyers, said Helmi Arman, a bond strategist at Bank Danamon Indonesia……………………………………….Full Article: Source

An Indonesian parliamentary commission approved on Tuesday the use of 30.2 trillion rupiah ($3.5 billlion) of state-owned assets to guarantee government sukuk issues.
The government has not issued sukuk for nearly two months after it ran out of underlying assets. ………………………………………Full Article: Source

Islamic bond issuance has hit a record high this year signalling a revival in the sukuk market following the Dubai debt crisis and other setbacks over the past few years.
The volume of sukuk bonds, which comply with Islamic law, has reached $10.2bn in the year-to-date, up 68% from the same period last year, according to data from Dealogic. Corporate issuers captured 65% of the market with $6.6bn of issuance — double the volume for the comparable period in 2010……………………………………….Full Article: Source

Dubai World’s property arm Nakheel has delayed offering an Islamic bond, or sukuk, until July as part of its $10.9 billion debt restructuring plan, two sources familiar with the matter said.
The developer, which overstretched itself with projects such as islands in the shape of palm trees, has said it expected its debt restructuring process, including the sukuk issue, to be completed by the end of the first half of 2011……………………………………….Full Article: Source

Saudi International Petrochemical Co (Sipchem) expects to raise up to 2 bln riyals (US$533.3 mln) from a planned Islamic bond offering to fund plant expansions, as per Reuters. Deutsche Securities, the securities arm of Deutsche Bank, and Riyad Capital were appointed as joint lead managers for the sukuk.
Under a Mudaraba sukuk, a bank provides capital for a project while an entrepreneur manages the deal. The profits are split according to a pre-determined ratio and the bank bears any monetary losses that arise……………………………………….Full Article: Source

The Central Bank of Bahrain (CBB) announces that the monthly issue of the short-term Islamic leasing bonds, Sukuk Al-Ijara, has been oversubscribed by 470%.
Subscriptions worth BD94 million were received for the BD20 million issue, which carries a maturity of 182 days. The expected return on the issue, which begins on 23 June 2011 and matures on 22 December 2011, is 1.05%……………………………………….Full Article: Source

The Central Bank of Nigeria (CBN) plans to issue its first sovereign sukuk within the next 18 months in a move aimed at boosting Islamic banking in Nigeria’s economy, its governor, Sanuis Lamido Sanusi said on Monday.
Sukuk is an Islamic financial certificate, similar to a bond in Western finance, that complies with Sharia, Islamic religious law. Because the traditional Western interest paying bond structure is not permissible, the issuer of a sukuk sells an investor group the certificate, which then rents it back to the issuer for a predetermined rental fee……………………………………….Full Article: Source

Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, Monday disclosed plans by the apex bank to sell its first ‘sukuk’ within 18 months. The sovereign ‘sukuk,’ according to the banking sector regulator, will help arouse interest in Islamic banking in the country.
THISDAY gathered that the ‘sukuk’ is the Arabic name for financial certificates. It is however, commonly referred to as the Islamic equivalent of bonds……………………………………….Full Article: Source

Going by structures already put on ground, Sanusi Lamido Sanusi, Governor, Central Bank of Nigeria (CBN), expects that the apex bank, working with the Debt Management Office (DMO), would fashion the nation’s first Islamic (non-interest) bond, before the end of next year.
A Reuters report on Monday quoted Sanusi, who is attending an Islamic Finance Forum in Dakar, Senegal as saying: “We are working with the debt management office. The central bank is collaborating with them on capacity building. We do have a target of issuing a first sovereign Sukuk in Nigeria within 18 months.”………………………………………Full Article: Source

The Central Bank of Nigeria (CBN) yesterday clarified its stance on Non-Interest Banking, saying it was not only Islamic banks that were contemplated under the new banking model, which categorised Non-Interest Banks (NIBs) as part of specialised institutions.
This clarification stemmed from the outrage by Christians who felt that non-interest banking was the same thing as Islamic banking……………………………………….Full Article: Source

In a sign that Islam’s role in Azerbaijan may be slowly evolving, the country’s largest and only state-owned bank, the International Bank of Azerbaijan, plans this autumn to open a specialized branch offering limited Islamic banking services.
A prohibition on charging interest for loans is the major distinction between Islamic and Western-style banking. Instead of interest, Islamic banks take a stake in businesses to which they loan money, and share both the profit and loss with the client……………………………………….Full Article: Source

Azerbaijani banks expand involvement in the process of activity on Islamic banking principles. Chairman of Turanbank’s Supervisory Board Fuad Musayev has reported that at present tender phase is underway for selection of the consultant on introduction of Islamic banking’s “window”.
” We have already given requests to potential consultants and expect their answers which we will evaluate and make a choice. In parallel national legislation analysis is ongoing “,- F. Musayev said. The bank sees Bahrain, Great Britain or Malaysian companies as its consultants……………………………………….Full Article: Source

Standard Chartered Saadiq, the bank’s brand name for Islamic banking, yesterday unveiled two shariah compliant products for business customers in Bangladesh.
The products — Islamic business installment finance, and Islamic finance against property — are designed for small and medium enterprises (SMEs). Islamic business installment finance operates under the concept of goods murabaha and Islamic finance against property works under hire purchase Shirkat-ul-Melk (diminishing musharaka) concept……………………………………….Full Article: Source

British-based Standard Chartered is planning to bid for a controlling stake in Bank Muamalat, the oldest Islamic bank in Indonesia, after its local affiliate, Bank Permata, withdrew from the race, sources with direct knowledge of the matter have said.
Qatar Islamic Bank and Bank Mega were among suitors that submitted second-round bids ahead of last week’s deadline……………………………………….Full Article: Source

Bank Simpanan Nasional (BSN) is moving ahead to become one of the leading banks in implementing Islamic banking in the country when all its 19 branches in Kelantan offer syariah-compliant services.
Its head of payments services division, Zaukifele Ibrahim, said Kelantan was the first state BSN that stopped its conventional banking services……………………………………….Full Article: Source

Seera Investment Bank, a Shari’a compliant investment bank headquartered in Bahrain, announced the sale of BWA Water Additives (BWA), a UK based company in a transaction valuing the company at around $ 300 million. The sale has generated a total return on investment of around 70% over a holding period of slightly over two and a half years with an IRR of around 20%.
BWA is the world-leader in the development and supply of specialty chemicals used for water treatment in 90 countries around the world. The company’s new owner is Berwind Corporation, a US family-owned investment management company, with investments in a diversified portfolio of highly successful manufacturing and service companies. (Press Release)

Oman is well positioned to attract Islamic funds for its economic development, if the country formulates the right regulatory environment and train human resources to work in Sharia-compliant institutions, says an expert.
“The major issue is regulatory environment. We also need to train people to work in Islamic banking institutions,” Dr Mabid Ali Al Jarhi, financial expert and head (Training) of Emirates Islamic Bank, told Times of Oman……………………………………….Full Article: Source

The Islamic finance industry is currently valued at Dhs3.65 trillion ($1 trillion) worldwide, of which Dhs717 billion ($210 billion) is invested in the Middle East.
Following the royal decree by Sultan Qaboos Bin Said Al Said authorising Sharia-compliant financial products in Oman, International Turnkey Solutions (ITS), a global leader in Islamic banking technology solutions successfully concluded its first ‘Oman Islamic Banking Conference 2011,’ attended by over 80 banking decision makers, Islamic banking experts and financial organisations……………………………………….Full Article: Source