The Islamic Globe

Arcapita's plan to exit bankruptcy

In order to exit bankruptcy, Arcapita has designed a long-term business plan which is to be combined with a previously approved incentive plan with employees. According to the latter plan, terminated employees and such, who remained with the company through November, will have the opportunity to settle the amounts they owed Arcapita from an incentive plan that allowed them to co-invest with Arcapita in portfolio companies. The incentive was made possible by an affiliate of Arcapita which loans the company money in order for Arcapita to invest in its deals.

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Jaiz offers roadmap for African expansion

It is a common opinion that Africa offers excellent opportunities for the global development and expansion of Islamic finance. The bank's managing director, Alhaji Mohammed Mustapha Bintube, explained that the bank has made steady progress regarding number of accounts opened, number of deposits, and numbers of proposals that received on a daily basis. The bank offers various products in the field of retail such as Jaiz Home Finance, Jaiz Auto Finance, Jaiz Home Appliance Finance etc. After the approval of the shareholders, the bank plans to increase its capital base from N7bn to N12bn.

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Arcapita's district cooling investment in jeopardy

Arcapita Islamic investment bank, which finds itselb in Chapter 11 bankrupcty, plans a new financial move. It will make a $1.9m Murabaha financing with a profit rate of 15% possible. The money will flow into District Cooling - a joint venture with Dalkia Utilities Company serving for district cooling and other services to three developments in Bahrain and Abu Dhabi. The financing is supposed to play the role of a bridge. Meanwhile Arcapita and District Cooling are occupied to renegotiate a concession agreement with Abu Dhabi’s Tourism Development & Investment Company (TDIC).

Fitch downgrades Kuwait Finance House’s Viability Rating to 'bb'

The Viability Rating of Kuwait Finance House has been downgraded to 'bb' by Fitch Ratings. The bank's Long-term Issuer Default Rating, however, remains at 'A+'. According to Fitch Ratings, the decrease in the VR is caused by he high concentrations in KFH's financing portfolio as well as asset quality indicators which continuously become worse. In addition, the bank reported slightly weaker regulatory Tier 1 and Fitch Core Capital ratios in H112. A positive move on KFH's side is expected: they plan to bolster their capital in the months to follow.

Large Chinese Sukuk for Axiata

As part of its Sukuk programme, Axiata Group has priced its maiden two year Chinese yuan renminbi (CNY) denominated Sukuk. The whole multi-currency Sukuk programme is planned to be worth about $1.5bn. On Tueday Axiata priced the first part of the Sukuk. It is expexted that the issue will be listed Bursa Malaysia Securities and on the Singapore Exchange. Among the banks which worked on the issue are CIMB Investment Bank, HSBC and Merrill Lynch Singapore.

More musical chairs in Bahrain

The chief operating officer of Bahrain-based Islamic investment bank Gulf Finance House - Haider Al Majali - has resigned. At the time of going to press, no name of a new COO has been mentioned. Meanwhile, the country's position as an Islamic finance capital of the GCC is strongly questioned. Ethnic conflicts and misuse of tear gas by the police against vocal opponents to the ruling regime are the main threat. The financial position of Bahrain depends on the development of its domestic situation.

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