The General Authority for Civil Aviation (GACA) would start Tuesday issuing sukuk or Islamic bonds to finance the development project for King Abdulaziz International Airport in Jeddah, which is estimated to cost SR27.11 billion.

“This will be the first batch of sukuk, which will be followed by other issues,” the GACA said in a statement, adding that the sukuk would be fully guaranteed by the government. The expansion would increase the airport’s annual capacity to 30 million…………………………………….Full Article: Source

Dubai lender Emirates NBD’s Islamic unit, Emirates Islamic Bank, has set an initial price whisper in the area of 350 basis points over midswaps for its five-year, benchmark-sized Islamic bond, or sukuk, lead managers said on Monday.

Books for the trade were now open, with pricing due to take place this week, they added. Investor meetings are due to conclude in London on Monday, having previously met investors in Malaysia, Singapore and Abu Dhabi…………………………………….Full Article: Source

Emirates NBD, majority-owned by the Dubai government, may attract funds to the emirate’s first sukuk sale by a bank since 2007, with debt priced at a 150 basis-point discount to the government’s Islamic bond.

The lender’s Sharia-compliant unit is likely to attract investors with returns as low as 275 basis points above midswaps, or about 4 per cent, Albaraka Banking Group said…………………………………….Full Article: Source

Goldman Sachs’s first foray into the Islamic bond market looks too clever by half. The Wall Street bank has secured approval from top sharia scholars for its maiden $2-billion (U.S.) bond. But by opting for an innovative and controversial structure, Goldman has invited criticism of its Islamic finance credentials.
Sharia rules prohibit interest payments, requiring financial transactions to be structured as profit-sharing agreements. Most Islamic bonds are based on a structure called ijara…………………………………….Full Article: Source

Majid Al Futtaim Holding, or MAF, has set up a $1 billion (Dh3.67 billion) Islamic bond, or sukuk, programme, paving the way for the company to raise cash to boost liquidity and better manage its debt, according to its base prospectus.

Arrangers and dealers for the trust certificate issuance programme include Abu Dhabi Islamic Bank, Dubai Islamic Bank, HSBC and Standard Chartered Bank, MAF said in its base prospectus, dated January 6, posted on the London Stock Exchange…………………………………….Full Article: Source

Malaysia’s biggest toll expressway company said it will issue $9.7 billion in Islamic bonds in what would be the world’s largest sukuk offering.

The 30.6 billion ringgit sukuk from Projek Lebuhraya Usahasama Berhad, or PLUS Berhad, is scheduled for Jan. 12. It follows the privatisation of PLUS Expressways Berhad, one of Malaysia’s largest privatisations…………………………………….Full Article: Source

Dar Al-Arkan Real Estate Development Co has paid $9.2m in quarterly coupon distributions to its Sukuk II & Sukuk III holders. DAAR said the payments comprised $6.8m for Sukuk II maturing in 2012, and $2.4m for Sukuk III maturing in 2014.

The periodic coupon distribution for Sukuk II is based on three-month Libor (0.40306% calculated on 13/10/2011) plus a profit margin of 2.25%…………………………………….Full Article: Source

Meezan Bank Ltd has arranged Rs 4.8 billion syndicated Islamic Finance Facility for DH Fertilisers Limited. DH Fertilisers is amongst Pakistan’s leading fertiliser manufacturers and a wholly owned subsidiary of the Dawood Hercules Corporation, (formerly Dawood Hercules Chemicals Limited) one of the largest groups and trusted business names in Pakistan.

The Syndicated Islamic Finance Facility was mandated to Meezan Bank as a Financial Advisor and Lead Arranger…………………………………….Full Article: Source

Banks in the United Arab Emirates may opt to refinance more than $3 billion of bonds due this year should pricing remain at current levels, as they seek to extend the average maturity of their debt.

UAE banks have about $3.49 billion of bonds and sukuk maturing in 2012, according to data compiled by Bloomberg. Most of this debt is held by the country’s three largest banks, Emirates NBD PJSC, National Bank of Abu Dhabi PJSC and Abu Dhabi Commercial Bank PJSC, the data shows…………………………………….Full Article: Source

Qatar National Bank (QNB), the Gulf Arab state’s largest lender, reported a 40 percent jump in quarterly profit on Monday on increased lending and a surge in deposits.

The bank’s fourth-quarter net profit rose to 2.1 billion riyals ($576.6 million), according to Reuters calculations, from 1.5 billion riyals a year earlier…………………………………….Full Article: Source

Nearly $2-million in gold, stakes in more than 160 homes, and perhaps the reputation of Canada’s emerging “shariah-compliant” loan industry are on the line in a sensational Toronto court case. At the crux of the issue is the emergence of Islamic financing in Canada.

A small percentage of the country’s one-million-strong Muslim population believes The Koran forbids them taking part in any kind of interest-bearing deal. Since big banks are off limits, they turn to lenders who specialize in workarounds…………………………………….Full Article: Source

AmBank Group has formed a joint venture with Friends Life Group of the UK to carry out family takaful business in Malaysia. AmFamily Takaful Bhd (AmTakaful), which began operations today, is the country’s 12th licensed takaful operator.

AmBank Group and AmTakaful chairman Tan Sri Azman Hashim said the market penetration rate for family takaful business in Malaysia is relatively low and remains largely untapped, therefore presenting a huge business opportunity…………………………………….Full Article: Source

FWU Group, a leading global Takaful company, was awarded the best “Takaful Company of 2011” at the Global Islamic Financial Awards 2011 event, which took place during the Oman Islamic Economic Forum 2011 held in Al Bustan Ritz Carlton Hotel, Muscat.

The event was attended by prominent regional and global industry leaders and dignitaries, including Yaseen Anwar, Governor of State Bank of Pakistan; Abdulaziz Al-Hanai, vice president of IDB; and Tun Abdullah Badawi, former prime minister of Malaysia…………………………………….Full Article: Source