Due to the opening of the largest-in-the-region “Islamic window” by the International Bank of Azerbaijan, an interest in the expert support of Islamic banking in the country has increased.Neil Miller, head of KPMG International Group on Islamic finance, has said that the best experience for Azerbaijan is the experience of Kazakhstan.
“The use of Islamic banking creates the conditions for an alternative and interest-free financing. From my own experience I can say that most Muslim countries are interested in the application and use of such banking. It should also be noted that in recent years the amount of funding on the methods of Islamic banking will reach $1.3 trillion,” Miller said………………………………………..Full Article: Source

In the two months since the establishment of the Islamic Banking Department, the International Bank of Azerbaijan (IBA) has raised $60 million, Chairman of the Board Jahangir Hajiyev said.
“The money is attracted from the Islamic Development Bank, the Fund in the UAE and other financial institutions. Currently, negotiations are underway to attract new funds,” Hajiyev said. According to him, Islamic banking is a large reservoir in the world finance and banking, to which Azerbaijan has virtually had no access before………………………………………..Full Article: Source

The Government of Indonesia has issued its third sovereign Sukuk. The $1 billion, 10-year bond, is part of a $3 billion trust certificate issuance program. It was rated BB+ by Standard and Poor’s, BBB- by Fitch and Baa3 by Moody’s.
Indonesia was able to price the Sukuk at 3.3 per cent, at the tight end of final guidance of 3.3-3.4 per cent and 20 basis points tighter than the initial price guidance of 3.5 percent provided before the sale. ……………………………………….Full Article: Source

Singapore investors dipped heartily into the world’s first syariahcompliant Tier 1 perpetual sukuk (Islamic bonds) despite the financial centre not being known for its appetite for Islamic finance.
So keen were Singapore investors on the offering that they accounted for 23 per cent or US$3.5 billion of the US$15.5 billion order book for Abu Dhabi Islamic Bank’s (ADIB) US$1 billion Tier 1 perpetual sukuk. In the end, however, allocations were scaled back and they ended up with 18 per cent of the issue. ADIB, majority owned by the Abu Dhabi royal family, last week sold the world’s first perpetual sukuk issued by a bank in the international market………………………………………..Full Article: Source

The use of Sukuk is now in vogue. The term itself is a plural for sakk, which in Arabic refers to a note, and is believed to be the origin of the English word cheque. The financial instrument is used in contemporary capital market practices as an investment certificate, note or simply a bond-like instrument, which replicates the economic characteristics of an interest-bearing bond.
A number of governments in the block of countries represented in the Organisation of Islamic Conference are using innovative Sukuk structures to raise money for a variety of purposes, including financing budget deficits………………………………………..Full Article: Source

The predominant tone in October was one of “risk on” with fluctuations in $ interest rates having little bearing on Sukuk pricing in the region. Nervousness in the international market merely resulted in the local market pausing for breath before soldiering on once positive sentiment returned.
Against this backdrop, the hunt for yield continued apace and this was reflected in the strong performance of some previously unloved but higher yielding names in the conventional space i.e. Dubai Holdings 14s and 17s which increased by more than two per cent and three per cent respectively on the month. In the Sukuk high grade space, DP World 17s and Dubai Government 22s were two standout performers increasing 2.4 per cent and 2.3 per cent respectively on the month………………………………………..Full Article: Source

Golden Agri-Resources Ltd. (E5H.SG) Monday said it has sold 1.5 billion Malaysian ringgit (US$489 million) of five-year Islamic medium term notes at a profit rate of 4.35% per annum, according to a company announcement.
The net proceeds raised from the issuance, the company’s first Sukuk, or Islamic notes, will be utilized for the company’s general corporate purposes which are in compliance with Shariah principles, Golden Agri said in a statement to Singapore Exchange………………………………………..Full Article: Source

Tilal Development Company, the Sultanate’s leading real estate firm that has been credited with the inception of the ground breaking Muscat Grand Mall project, announces its intention to raise OR53m by way of Islamic debt instrument or sukuk, which will be the first such issue in Oman in order to put into motion plans for expansion of the complex that houses Muscat Grand Mall.
Commenting on this historic announcement, Hassan Jaboub, General Manager of Tilal Development Company said, “These are very exciting times for us. The Muscat Grand Mall, our finest venture has seen unparalleled success and it is only natural for us to move forward the expansion way.” Discussing the instrument, Jaboub commented, “67,000 square metres of shopping area at Muscat Grand Mall are fully leased and already operational. Additionally, owing to demand and market interest in our project, the expansion was an effortless decision. Towards the same, we are also glad to be pioneering the sukuk market in Oman and hope that it will grow exponentially here from.” (Press Release)

The board of Dana Gas is meeting on Sunday morning to discuss progress in restructuring the company’s $920 million Islamic bond which matured last month, the company said in a stock exchange statement.
Natural gas producer Dana, headquartered in the emirate of Sharjah, said on November 7 it had reached an agreement in principle with creditors on restructuring the sukuk, and would pay holders a mix of cash and two new bonds. The new bonds would be a sukuk and a convertible sukuk………………………………………..Full Article: Source

Malaysian Rating Corp Bhd (MARC) has downgraded its ratings on Tanjung Langsat Port Sdn Bhd’s (TLP’s) RM250mil sukuk musyarakah bonds and RM135mil musyarakah commercial papers/musyarakah medium-term notes programme (MCP/MMTN) to BBB+IS and MARC-3ID/BBB+ID from A-IS and MARC-2ID/A-ID respectively.
The downgrade reflects TLP’s continued losses and weak cashflow which arose from a delay in the commencement of its port operations. This has resulted in erosion of its shareholders’ funds and heavy reliance on sale of land to meet its principal repayments which commenced in July 2012………………………………………..Full Article: Source

At the end of the third quarter of 2012, total assets under management amounted to USD 59.5 billion, according to the first issue of Zawya’s MENA mutual funds quarterly bulletin for Q3-2012.
More than half of these assets are invested in money market and Saudi trade finance funds, while 25% is invested in equities. The rest is allocated among fixed income securities, IPOs, protected or guaranteed funds, and many other types………………………………………..Full Article: Source

There were three recent major Islamic finance conferences in Malaysia: Global Islamic Finance Forum (GIFF), Islamic Finance News (IFN), and Kuala Lumpur Islamic finance forum (KLIFF), and headline question was neither asked nor answered or raised?
Who represents the financial interests of the super-majority of 1.8 billion Muslims comprised of have nots, students and the youth? Are they ‘bankable in the wait’ for Islamic finance for sizing and seizing………………………………………..Full Article: Source

Mazaya Qatar Real Estate Development Company QSC has signed a dual-currency, $106.7m 8-year syndicated facility to finance the development of the Sidra Village Residential Project. QInvest acted as Financial Advisor to Mazaya Qatar Real Estate Development Company and Sole Bookrunner for the facility.
Qatar Islamic Bank took the Investment Agent and Mandated Lead Arranger roles and was joined in the facility at MLA level by a group of regional financial institutions comprising ABC (through Arab Banking Corporation and ABC Islamic Bank), National Bank of Abu Dhabi, and First Gulf Bank, with Ahli United Bank taking a Lead Arranger role………………………………………..Full Article: Source

Fitch Ratings has affirmed Abu Dhabi Islamic Bank’s (ADIB) Long-term Issuer Default Rating (IDR) at ‘A+’ with a Stable Outlook and Viability Rating (VR) at ‘bb’. ADIB’s IDRs are driven by potential state support from the UAE authorities. A change in Fitch’s view of the willingness or ability of the UAE authorities to support ADIB would be negative for its IDRs and its Support Rating Floor.
However, Fitch notes recent supportive actions for the domestic banking sector including pre-emptive capital injections. In addition, Fitch believes that support would be forthcoming from the Abu Dhabi government (’AA’/Stable/’F1+’), which has injected hybrid capital into the leading Abu Dhabi banks………………………………………..Full Article: Source