Standard Bank

Standard Bank leads on largest Sub-Saharan Africa Sukuk

Standard Bank has acted as Joint Lead Manager on the National Treasury of South Africa's debut Sukuk in the international capital markets. The US$500m 5.75-year Sukuk is the largest Sukuk issuance from Sub-Saharan Africa and only the third Sukuk to be issued by a non-Islamic country. The Sukuk will be used to fund South Africa's National Revenue Fund. It also creates a benchmark for the market which will assist state-owned companies to access diversified sources of funding from Islamic investors. The Sukuk is based on the Ijara principle.

Battle for Shar’ia Money

Such is the hype of activity about Shari’a-compliant product at the moment that even The Grand Duchy of Luxembourg has now moved a step closer towards the issuance of a debut sukuk. The government presented a draft bill to parliament that could get deal going, proposing the issuance of a €200m-equivalent sovereign sukuk denominated. Euros or US-Dollars, both are welcome. Additionally, the Luxembourg government has also identified three real estate assets to underpin the transaction.

Investment firm Arcapita emerges from US bankruptcy

Islamic investment firm Arcapita is the first Gulf company to emerge from U.S. bankruptcy under Chapter 11 rules. Arcapita’s plan is to transfer its assets into a new holding company which will dispose of them over time to pay off creditors and gradually wind-down the firm. Arcapita’s creditors include Barclays, CIMB, Royal Bank of Scotland, Standard Bank, Standard Chartered and the Central Bank of Bahrain – its largest creditor with $255.1 million owed.

The National Industries Co.(K.S.C) successfully settled its US$ 100 Million Sukuk

The US$ 100 million Sukuk for The Building Materials Company has been successfully arranged and paid for in full on its Maturity date 18 October, 2011. Kuwait Finance House, Liquidity Management Centre, Gulf International Bank and Standard Bank underwrote the sukuk.
The Sukuk was supported by building material factories which supplied an over-collateralization and an added security for all Sukuk holders. It offered a semi-annual return of 100 basis points over US Dollar 6 months LIBOR.

Building firm's $100m sukuk a success

The $100 million sukuk for the Building Materials Company has been successfully resolved and paid for in full on its maturity date on October 18.
The statement was given by the arrangers and lead managers, Kuwait Finance House (KFH), Liquidity Management Centre, Gulf International Bank, and Standard Bank.

Takaful market set to grow in S. Africa and beyond

Through the acquisition of the local Islamic insurance company, Takafol SA, by Absa, it is once more underlined that the mainstream banks in South Africa are taking Islamic finance as a serious niche market business.
The Takaful premium market in South Africa is at this point estimated at about 3 billion South African rands (about $420 million), which is very modest compared to the conventional insurance market.
Banks such as Absa and Standard Bank posess clear strategies of growth and expansion beyond South Africa to sub-Saharan Africa, and Islamic banking and insurance are an attractive component of this offering especially in countries with large and affluent Muslim populations.

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