#Indonesia sells 8.44 trillion rupiah in retail #sukuk

The Indonesian government sold 8.44 trillion rupiah ($613.19 million) of sukuk bonds to local retail investors. The sales were slightly higher than the initially-allotted 8.11 trillion rupiah. The tradeable sukuk carry a fixed annual rate of 5.9%, similar to the average rate offered by Islamic banks for 12-month and longer time deposits. The sukuk was sold to a total of 17,922 Indonesians this year. Since the retail sukuk was first launched in 2009, the government has sold a total of 144.78 trillion rupiah of the debt to nearly 250,000 people.

GCC sovereigns, GREs to drive #sukuk supplies in 2018

Growth in global sukuk issuance is expected to remain muted this year although issuance volumes are likely stable. Moody’s Senior Analyst Nitish Bhojnagarwala expects sukuk issuances to remain broadly stable between $90-$100 billion in 2018, again driven largely by sovereigns. Although the financing needs of sovereigns, banks and corporates in the GCC have decreased in recent months due to higher oil prices, these issuers are expected to continue to support the industry. Sukuk market activity is also supported by specialised multilateral entities, such as quasi-sovereigns, central banks and supranational entities, including the Islamic Development Bank (IDB), the International Liquidity Management Corporation (IILM) and the Arab Petroleum Investments Corporation (APICORP). Moody’s estimate that total sovereign sukuk volumes will remain stable in 2018 although some of the large issuances in 2017 may not be repeated in 2018, driving a marginal decline in the overall value.

Sovereigns and new issuers underpin #sukuk issuances

According to Moody’s Investors Service, sukuk issuance grew 17% in 2017 to reach US$100 billion, underpinned by large sovereign transactions from the Gulf Cooperation Council (GCC) region. At the same time, new issuers came into the market last year, including some corporates from China and France. The sukuk market activity is also supported by specialized multilateral entities, such as quasi-sovereigns, central banks and supranationals, including the Islamic Development Bank, the International Liquidity Management Corporation and many others.

Bidaya Home Finance Issues Plans for Selling Islamic #Sukuk Bonds

Bidaya Home Finance revealed plans to sell Islamic sukuk bonds worth 500 million SAR. Bidaya Home Finance hired the services of Ashmore Investment Saudi Arabia to arrange the program.

Sharjah Govt issues $1b #sukuk

The Government of Sharjah has issued a $1 billion (Dh3.67 billion) dollar sukuk on a 10 year maturity. The lead arrangers for the issue were Sharjah Islamic Bank, Dubai Islamic Bank, HSBC and Standard Chartered. Walid Al Sayegh, Director-General of Sharjah Finance Department, pointed out that the timing behind the issuance makes this the first sovereign sukuk issued in 2018 in the region. It is also the largest sukuk issuance by the government of Sharjah, which previously carried out two issuances. Al Sayegh said that the revenue from these sukuk would be used for infrastructure projects, as well as urban and financial development of Sharjah.

#Kazakhstan eyes sovereign #Sukuk, central Sharia board

Kazakhstan plans to issue sukuk in the coming months as part of its efforts to develop Islamic finance in the country. Alibek Nurbekov, head of the Islamic finance at the Astana International Financial Center (AIFC), said the final legislative changes to allow issuance of sovereign sukuk were nearly complete. Issuance of sovereign sukuk is planned in the first half of 2018 in total up to $300 million dollars. The sale would follow sukuk issued by the Development Bank of Kazakhstan in 2012, a deal that raised 240 million ringgit ($61.51 million) via the Malaysian market. Nurbekov added that a central sharia board would be established in the first half of the year, while rules covering Islamic insurers and a fund for Islamic endowments are also planned.

Saudi Dar Al Arkan Real Estate hires banks ahead of 5-year dollar #sukuk deal

Dar Al Arkan Real Estate Development has mandated banks to arrange investor meetings ahead of a planned U.S. dollar five-year sukuk offering. If the deal goes ahead, Dar Al Arkan will be the first Saudi company to issue an international bond this year. The banks mandated are Alkhair Capital, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, Goldman Sachs International, Nomura, Noor Bank and Standard Chartered Bank, who will act as joint bookrunners of the deal.

Islamic Development Bank gives initial price guidance for dollar #sukuk - lead

Islamic Development Bank (IDB) has given initial price guidance for a senior, unsecured five-year U.S. dollar-denominated sukuk in the high 30 basis points over mid-swaps. IDB President Bandar Hajjar said that the bank planned to launch a $2.5 billion sukuk soon. CIMB, Citi, Emirates NBD Capital, HSBC, Natixis, SMBC Nikko and Standard Chartered Bank are the banks leading the deal.

Emirates to meet investors ahead of possible #sukuk issuance

Emirates airline mandated local and international banks to arrange a global investor roadshow ahead of a possible sukuk issuance. The carrier mandated Citi and Standard Chartered Bank as global coordinators and joint lead managers, alongside BNP Paribas, HSBC, J.P. Morgan, Abu Dhabi Islamic Bank, Dubai Islamic Bank, First Abu Dhabi Bank, Emirates NBD Capital, and Noor Bank as joint lead managers. Proceeds from the issuance will be used for general corporate purposes. Emirates did not disclose the size of the possible sukuk, but said it will be of benchmark size. The company has tapped the debt capital markets with four issuances since 2011 raising over $3.65 billion, over 50% of which has been from sukuk. The most recent aircraft order was for 36 Airbus A380s worth $16 billion and was made in late January. Delivery of the aircraft will begin in 2020.

Islamic bonds face 'uncertain and muted' 2018 amid central bank tightening and geopolitics

According to S&P Global Ratings, the outlook for 2018 is uncertain because of geopolitical risks and economic uncertainties. Sukuk issuance was strong last year with $97.9 billion, up 45.3% from the $67.4 billion issued in 2016. So-called "jumbo issuances" were seen in Saudi Arabia and other Gulf Cooperation Council (GCC) economies in 2017. Mohamed Damak, senior director at S&P Global Ratings, said the first two months of 2018 had been marked by a good performance for local currency issuance and a drop in foreign currency issuance. He added that 2018, as a whole, was expected to see a drop in sukuk issuance, with expectations for around $70-80 billion in total. There are a number of reasons for this, including central bank tightening, lower financing needs of GCC banks and geopolitical risks. Another reason for lower sukuk performance could be the slow progression of the standardization in the sukuk market.

New Form of Islamic Bond Makes Debut at Iran Fara Bourse

The Iranian government issued 30 trillion rials (about $670 million) worth of Manfa’ah sukuk at the over-the-counter exchange Iran Fara Bourse. The 42-month bonds, bearing a maximum of 20.1% annual interest, will be backed by 51 trillion rials ($1.13 billion) of government revenues. Each Manfa’ah sukuk is priced at 1 million rials ($22.2).

#Saudi will issue #sukuk as soon as market conditions allow-DMO chief

Saudi Arabia is committed to the sukuk market and will issue Islamic bonds as soon as market conditions allow. Fahad al-Saif, president of Saudi Arabia’s debt management office (DMO) said Saudi Arabia had a ratio of 65% to 35% for local to international issuance, plus or minus 10%. He added that the DMO aimed to develop the local market but not to crowd out the banks. Saudi Arabia started issuing debt in the international markets in 2016 when it issued $39 billion in bonds, including a $9 billion sukuk. Domestically, the government has raised a total of over 70 billion riyals ($18.67 billion) through monthly local currency sukuk issues. The kingdom has recently agreed the refinancing, extension and upsizing of a $10 billion loan it had raised in 2016. The loan has now been increased to $16 billion. Furthermore, a new dollar bond sale is expected over the coming weeks.

UPDATE 1-Islamic Development Bank to launch $2.5 bln #sukuk "soon" -president

The Islamic Development Bank (IDB) announced it would launch a $2.5 billion sukuk "soon". Bank President Bandar Hajjar said the IDB was also planning to set up a $500 million fund to support science and technology start-ups. The institution has recently hired banks as joint lead managers and bookrunners for a new U.S. dollar-denominated sukuk. The banks are CIMB, Citi, Emirates NBD Capital, Gulf International Bank, HSBC, NATIXIS, SMBC Nikko and Standard Chartered Bank. Hajjar added he expected to sign a memorandum of understanding with the China-led Asian Infrastructure Investment Bank (AIIB) soon, on joint investing in Africa. Timing and size of the cooperation were not disclosed, but it would target the 26 poorest countries on the continent.

Al Hilal Global #Sukuk Fund delivers 3.93% dividend

Al Hilal Bank has announced the dividend payout of the Al Hilal Global Sukuk Fund. The Fund, which was launched in March 2012, distributed a 3.93% dividend to all registered unit holders. Al Hilal Bank CEO Alex Coelho said the Fund had registered excellent cumulative total returns since its inception in 2012. Al Hilal Bank currently offers 3 open-ended mutual funds inclusive of the Global Sukuk Fund. In 2017, Al Hilal Global Sukuk Fund was awarded the title "Best Fund over 3 years", while the GCC Equity Fund received the "Best Islamic Fund" award in 2013 and 2014. The bank plans to continue launching investment products as part of its ongoing efforts to create value and increase diversification for its clients.

Green, Islamic investors find common ground with Indonesian #sukuk

#Indonesia became the first Asian sovereign to sell green sukuk, raising $1.25 billion via a five-year deal, alongside a $1.75 billion 10-year sukuk. Proceeds will be used on eligible projects, ranging from renewable energy to waste management. Indonesia’s sukuk was based on an agency contract known as wakala and also incorporated a green framework assessed by the Centre for International Climate and Environmental Research (CICERO). Such a convergence of investment principles could widen the appeal of sukuk beyond Asia and the Middle East to include ethical investors in Western countries. More transactions might be needed to fully test the appetite of green investors for sukuk, as Indonesia’s green sukuk saw stronger takeup from regional investors.

Counting Milestones From N100bn #Sukuk Roads Investment Fund

In September 2017, the Federal Government of Nigeria raised N105bN to fund the construction of roads in the country. Soon after that, finance minister Mrs. Kemi Adeosun began the disbursement of the fund to commence work on the twenty five key economic roads in the six geo-political zones. The reconstruction of the outstanding sections of Benin to Ofusu to Ore to Ajebandele to Shagamu Expressway had been completed. At the other sites the construction work is on with massive presence of construction machineries and materials.

#Indonesia raises $3bn in Sovereign #Sukuk including $1.25bn Green Sukuk

Indonesia raised $1.25bn as the world’s first sovereign green sukuk. The country's latest sukuk was priced at a yield of 3.75% and has a tenure of 5 years. Non-Sovereign Malaysian organisations have previously issued green sukuk, most recently with two issuances in 2017. Indonesia also raised US$1.75 billion via a 10-year sukuk sold at the same time as the green issuance. The non-green sukuk was sold at a coupon rate of 4.4%. Globally, $155.5 billion of green bonds were sold last year, according to the London-based Climate Bonds Initiative.

DIB boosts emirate’s #Sukuk listings to over $53b

Dubai Islamic Bank (DIB) is celebrating the listing of a $1 billion Sukuk on Nasdaq Dubai. The listing is the first benchmark dollar-denominated sukuk from a GCC issuer in 2018. DIB's Group CEO Dr Adnan Chilwan said the bank's master plan was developed a decade ago and has yielded solid results so far. He added that the strong demand for the credit continues to grow across a diverse global investor base. This issuance is DIB’s sixth sukuk on Nasdaq Dubai, making the bank the largest UAE debt issuer by value on the exchange with a total of $5.25 billion. The total value of all sukuk listed on Dubai’s exchanges has now reached $53.47 billion, the largest amount of any listing centre in the world.

#Indonesia issues world's first #green #sukuk bond - Financial Times

Indonesia, the world's largest exporter of coal, has become the first country in the world to sell a sovereign green sukuk bond. The country has borrowed $1.25bn with the issuance of a five-year sukuk. Luky Alfirman, head of the Budget Financing at Indonesia's Finance Ministry said the proceeds would be used to finance projects such as renewable energy, green tourism and waste management. The government also said it would take up more projects to address climate change mitigation and adaptation, which requires alternative financing. CIMB, Citigroup, Dubai Islamic Bank PJSC , HSBC and Abu Dhabi Islamic Bank were bookrunners on the deal.

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