IslamicFinance.de

At the 36th annual board of governors meeting held in Jeddah last month, there was one positive result that stood out: the approval by the Board of Directors of the Islamic Corporation for the Insurance of Export Credit and Investment (ICIEC), the standalone export credit and political risk insurance agency of the IDB Group, of the corporation's capital from the current $240 million to $640 million.
ICIEC had an obvious gain: the capital increase would substantially increase its underwriting and reinsurance capacity.
It was confirmed by Abdel Rahman Taha, CEO, that ICIEC is still reviewing the feasibility of launching the LC Guarantee Fund, and are in discussions with some partner institutions on the structure and objectives of the fund.

A licence for the bank to create Asia's first multinational Islamic bank will awarded in the third quarter. This has the possibility to increase the ability of syariah-compliant lenders to carry out larger sukuk deals, after global sales more than doubled to US$14.7bil this year.
Five Pillars, an Islamic finance advisory firmfrom Singapore revealed its oppinion that it thinks that the amount may grow to about US$10bil in six to 10 years.

Saudi Binladin Group (SBG) has closed its second short term Sukuk. It attracted more than SAR 3 billion ($799.9 million) of orders for a SAR 1 billion ($266.6 million) issuance.
The privately placed Sukuk was offered to Saudi sophisticated investors and launched through SBG Sukuk Co.

Clifford Chance advises on largest dual-tranche global sovereign US dollar sukuk
International law firm Clifford Chance has given advice to CIMB, Citi, HSBC and Maybank as joint lead managers and joint bookrunners on the US$2 billion dual-tranche sukukal- wakala transaction for the Government of Malaysia.
The sukuk certificates have been assigned a rating of A- by Standard and Poor’s and A3 by Moody’s.

Abu Dhabi's First Gulf Bank has authorized Citi , HSBC and Standard Chartered to arrange investors meetings starting July 21 after which the lender could launch sukuk.

The Thai laws were discussed by Siripen Kaodara and Stephen Jaggs.
Although Thailand had a Muslim population of approximately nine million and an Islamic banking system which dates back to 1998, it previously lacked the necessary legal infrastructure for high profile Islamic products such as sukuk.
Three years ago, Thailand passed the Act on Trusts for Capital Market Transactions (Trust Act) which introduced the concept of ‘trust’ into the Thai civil law system. The main regulation, which sets out the approval and filing requirements for sukuk, took effect on the 16th January 2011 (Sukuk Regulation).

It seems that Al Hilal Bank sees double-digit growth in 2011 profits driven by its retail and corporate businesses. The lender is beginning to take in consideration the issuing of sukuk. Therefore it will look for a corporate rating before the sale.

In order to help mobilize funds for businesses around the world, Malaysia will launch a license for an Islamic “mega bank” in the third quarter of this year. The statement came from the country’s central bank governor.
It seems that in the same period, the Southeast Asian nation is also going to start a cross-border clearance platform for sukuk.

Fitch Ratings has announced that it has assigned FGB Sukuk Company Limited's $3.5 billion Trust Certificate Issuance Programme a Long-term rating of 'A+'.
Fitch underlines the fact that the rating is for the programme and not to the trust certificates issued under the programme.

The introduction this month of the revised “Islamic securities guidelines in conjunction with revised trust deeds guidelines has the aim of enhancing the Malaysian regulatory framework for fundraising and product regulation in the private debt securities and sukuk markets; to enhance the efficiency and competitiveness of the Malaysian sukuk market; and to promote greater connectivity between the Middle East and Asian Islamic capital market sectors.
The revised guidelines are effectively a continuum of a series of legal and regulatory developments in this space in Malaysia over the last year or more.

After securing approval for its debt restructuring by all lenders, Nakheel properties continue with the plans to issue Dh4.8 billion sukuk on time this month.
The Sharjah-based Arabic language daily Alkhaleej reported that sukuk would be launched and managed by the German Deutsche Bank. The source of the information remains unknown.

The Securities Commission Malaysia (SC) has launched the revised Private Debt Securities (PDS) Guidelines, Sukuk Guidelines and Trust Deed Guidelines to deepen the regulatory framework for fundraising and product regulation in the Private Debt Securities and Sukuk markets.
The revised Sukuk Guidelines supply greater clarity on the application of Shari’ah principles endorsed by the SC's Shariah Advisory Council in relation to Sukuk transactions while the Trust Deed Guidelines improves disclosure standards and protection for corporate bond and Sukuk holders.

Cagamas Berhad (Cagamas) revealed the launch of 1, 2 and 3 year Cagamas Sukuk Commodity Murabahah amounting to RM1 billion.
The sukuk are unsecured obligations of the Company.

The 2nd edition of International Islamic Financial Market (IIFM) Sukuk Report was issued in Labuan with purpose at meeting the need of players in the global (domestic and international) Sukuk market by providing them with useful information on the latest developments of Sukuk in terms of type, geography and structure.
The report with the strong supports from the various international financial bodies particularly in Malaysia includes information and relevant details of Sukuk issuances during the time period of January 2001 – December 2010.

Fitch Ratings has given DP World Sukuk's existing $1.5 billion Sukuk issue of senior unsecured trust certificates a final long-term senior unsecured 'BBB-' rating. The certificates were launched on 2 July 2007 and are due in 2017. DP World acts as the obligor of the Sukuk certificates.
Moreover, DP World is possible to supplement any shortfall in the returns generated by the underlying assets in order to make periodic payments in full.

It is possible that Emaar Properties’s sukuk will extend rally after the UAE relaxed visa rules for homebuyers in order to attract investment to the Middle East’s worst-performing property market.
The federal government agreed to lengthen the visa period to three years from six months, like it was until now. About 85 percent of the UAE’s population are foreign nationals and require visas to live and work in the country and that makes this great news.

Al Baraka Bank Egypt expects its sale to raise the sale of 10-year Islamic bonds this summer until EGP1bn ($168m). this was reported by Bloomberg. The bank will use the funds to help restructure liabilities" and to finance "growth plans".

Saudi International Petrochemical Company (Sipchem) declared the successful closing of its first publicly listed sukuk of SR1.8 billion which was upsized from the initial base case of SR1.5 billion due to the strong demand shown by interested investors.
A large number of investors showed interest in the Sipchem sukuk with total orders received in the range of SR4.5 billion. Investors interested in the program included government institutions, insurance companies, investment and money market funds, financial institutions and individuals.

The Central Bank of Nigeria (CBN) , the Infrastructure Concession Regulatory Commissiosn (ICRC) and the Debt Mangement Office (DMO) have begun the discussions on finding the best ways to explore an option of sukuk (Islamic) bonds for financing the infrastructure requirement in the country.
The DMO had shown some interest in partnership with the CBN to develop and issue Islamic bonds for the Nigerian financial system.

Tenaga Nasional is going to sell as much as 5 billion ringgit in 20-year Islamic bonds.
The bonds will be formed according to the ijara or Islamic leasing contract.