Sukuk

Saudi sukuks seen doubling next year, says Saudi Hollandi

Saudi firms may launch 10 Islamic bonds, or sukuk, in 2011, more than double their number this year, but they will be dominated by private placements.
Key factors that will spur demand for Saudi sukuk issues will be a low interest rate environment in Saudi and Dubai World's restructuring accord with 99 percent of its bank lenders as well as Dubai's successful $1.25bn conventional bond issue in late September.
Saudi Arabia has had four sukuk issues this year so far, Nisar said, but declined to comment on the expected size of issues and only cited Jeddah-based Islamic Development Bank (IDB) and an Aramco-Total joint-venture as being among the prospective issuers.
The interest rate environment in Saudi Arabia -- the main repo interest rate stands at two percent -- might seem discouraging for prospective sukuk buyers.

Growth in Sukuk issuance offers Islamic funds an opportunity says S&P report

Standard & Poor's Ratings Services said that it believes that the sukuk market has grown large enough to support a transformation in the Islamic fund industry.
The report is titled "Sukuk Funds Poised To Grow As Sukuk Market Continues To Expand".
The sukuk market returned to growth in the first half of 2010. Global sukuk issuance topped US$13.7 billion during this period, nearly twice the US$7.1 billion recorded during the same period last year.

Strong H1 seen for Islamic issuance-Noor Islamic

Noor Islamic Bank expects to close a “healthy number” of Islamic syndicated loans and Islamic bonds in the first half of 2011, with Turkey emerging as an active market for Islamic finance.
Aamer Zaidi, head of corporate banking at Noor Islamic Bank, said on Wednesday that the company is involved in a few sukuk issuances in the Gulf region and is also working on syndicated loans within the UAE.
The Gulf sukuk market is poised for a revival as large corporate and supra-national issues come to market following Dubai World’s restructuring accord with 99 percent of its bank lenders as well as Dubai’s successful $1.25 billion conventional bond issue in late September.

Malaysia’s Islamic Banking Assets Climb to 20 Percent of Total

Islamic banking in Malaysia, the world’s biggest market for sukuk, rose 21 percent in the first seven months of 2010 from a year earlier, and accounted for 20 percent of the total, the government said in a report.
The Southeast Asian nation, where about 60 percent of the 27 million population are Muslim, lowered foreign-ownership limits in financial institutions in 2009 to attract more international investors. The central bank has issued Islamic licenses over the past year to global funds that include Aberdeen Asset Management Plc and Franklin Templeton Investments.

Sukuk advance to record on thirst for yield: Islamic finance

Global Islamic bonds are poised to extend gains after climbing to a record this week, buoyed by Asian economic growth and a pickup in Persian Gulf issuance.
Dubai Electricity & Water Authority, the government run utility, sold $2 billion of non-Islamic senior unsecured debt yesterday in its largest dollar denominated bond sale.
Islamic Development Bank, a Jeddah based multilateral lender, plans to sell $1 billion of bonds this quarter under a $3.5 billion sukuk program, Vice President Abdul Aziz Al Hinai said August 24. Saudi Arabian Oil Co, based in Dhahran, Saudi Arabia, and Total SA, based in Paris, plan to sell $1 billion in sukuk this year, Simon Eedle, global head of Islamic banking at Credit Agricole SA, the lead arranger of the sale.

Sukuk.me: Ras Al Khaimah eyeing bond issue

Last year, the emirate issued another $400m worth of sukuk. The government of Dubai in September launched its first sovereign bond issue since a debt crisis.

Saudi Aramco, Total ink $1b Sukuk for Jubail JV

Saudi Aramco and France's Total will launch $1 billion Islamic bond (Sukuk) in the Q4 to build 400,000 barrels per day crude refinery in Jubail.
Simon Eedle, global head of Islamic banking at Credit Agricole, said the long delayed $1 billion Sukuk which was part of the financing for the Jubail refinery will launch in the Q4. Credit Agricole, Deutsche Bank and Samba Financial Group are the lead arrangers for the Sukuk.
Global Islamic bonds are poised to extend gains after climbing to a record this week, buoyed by Asian economic growth and a pickup in Gulf issuance.
Gulf sales of Sukuk, which pay asset returns, are rising after Dubai World reached an agreement with creditors last month to change terms on $24.9 billion of debt. Companies in the region plan to issue about $5.8 billion of Islamic debt in the fourth quarter, the most for the period in three years.

Source: 

http://www.sukuk.me/news/articles/28/Saudi-Aramco-Total-ink-$1b-Sukuk-for-Jubail-JV.html

Kazakhstan sees first Islamic bond by year-end

After a lengthy delay, the government is on track to issue Kazakhstan’s first sovereign sukuk, or Islamic bond, before the end of this year – a key step in the country’s desire to become a regional financial hub, says Arken Arystanov, head of the Regional Financial Centre of Almaty City (RFCA).
Amendments to Kazakhstan’s law on Islamic finance and banking, currently being considered by parliament, are due to be adopted within the next two months, Arystanov says, paving the way for the government to issue its debut sukuk - most likely in the $500m range - by the end of 2010.
It’s certainly true that for some Kazakh companies there has been no difficulty in raising money by traditional means recently. State nuclear company Kazatomprom’s debut Eurobond in May 2010 was eight times oversubscribed; the issue by national rail operator Kazakhstan Temir Zholy in September was seven times oversubscribed.

New opportunities on horizon for JIB

From being a small and unimportant Islamic bank established in 1978 and under the loyal and unbroken stewardship of the seasoned General Manager Musa Shihadeh, Jordan Islamic Bank (JIB) has, over the last three decades transformed itself into the largest Islamic lender and the third largest domestic bank in Jordan. This is by all standards impressive given that JIB's main competitor in the market is the mighty Arab Bank Group, one of the largest banks in the Middle East and which has its own dedicated Arab International Islamic Bank.
The Ministry of Finance and the Central Bank of Jordan have given the go-ahead for Al-Rajhi Bank in Jordan to explore the possibility of issuing a sukuk. Assuming that the Treasury and the central bank are working on introducing enabling legislation for sukuk origination and listing in Jordan, this would open up new avenues of raising finance and investments for the likes of JIB.

Gatehouse plans to launch £70m sukuk in Nov

Gatehouse Bank, London-based Shariah-compliant wholesale bank, is planning to launch a £70 million (Dh410m) Islamic bond (sukuk) next month.
In an exclusive interview with Emirates 24|7, Fahed Boodai said the sukuk is targeted at the UK corporates and is expected to be completed in November.
Simon Eedle added that the time is also right for sukuk issuances outside of the Gulf region and he expects more investment money from the West to tap the Islamic finance market in 2011.

Sukuk Entice Canada Issuing $2 Billion to Spread Funding: Islamic Finance

The growing demand for securities that meet Islamic religious principles may lead Canadian governments and companies to start issuing Shariah bonds.
HSBC Bank Canada may offer $500 million and three government-related borrowers from one Canadian province may issue $1.5 billion of sukuk, Omar Kalair, chief executive officer of Toronto-based UM Financial, said in an Oct. 14 interview. A “handful” of Canadian companies may sell C$1 billion ($980 million) of Islamic debt by 2013, said Daud Vicary Abdullah, global Islamic finance leader at Deloitte Corporate Advisory Services Sdn. in Kuala Lumpur.
Egypt, Nigeria, the Philippines and Thailand have announced plans to sell their first sukuk in the past three months, partly to tap Persian Gulf oil wealth.

Sukuk Issuers Shun Bonds Backed by Property: Islamic Finance

Persian Gulf Islamic bond issuers are avoiding collateral based on real estate after Dubai property prices plunged 50 percent.
Debt linked to returns from oil fields, aluminum and manufacturing plants are more popular with investors than property.
Defaults by some companies have increased concern among investors about risks associated with Islamic bonds. International Investment Group KSCC, an Islamic financial company based in Safat, Kuwait, said July 26 it was unable to pay $152.5 million to bondholders who demanded immediate repayment after it defaulted on a $200 million Islamic bond.

QIB successfully closes its debut $750m sukuk

It is a step in the right direction, but in terms of adding critical mass to the pool of issuances of international sukuk, it is a mere drop in the ocean. Nevertheless, the successful closure in early October 2010 by Qatar Islamic Bank (QIB), the largest Islamic bank in Qatar, of its debut $750 million fixed-rate Wakala sukuk underlines the fact that despite the huge latent appetite for "A" rated Islamic commercial paper from investors all over the world, such issuances are too few and far between to stimulate an effective global sukuk market and its attendant secondary trading.
Despite the fact that QIB stresses that this issue could pave the way for future issuances, it settled for a single transaction as opposed to a program of which this $750 million sukuk issued on its behalf through a special purpose vehicle (SPV), QIB Sukuk Funding Limited, would have represented the first tranche.

Egypt to Issue Sukuk Rules in 2011 to Compete With Gulf: Islamic Finance

Egypt, home to the Arab world’s largest Muslim population, will issue its first Islamic debt guidelines in 2011 to catch up with the Persian Gulf and Southeast Asia and help spur sales.
Al Baraka Bank Egypt ESC, a Cairo unit of Bahrain-based Islamic lender Albaraka Banking Group, may sell dollar- denominated Islamic bonds, known as sukuk, in the second half of 2011.
Al Baraka, Faisal Islamic Bank of Egypt and National Bank for Development are the nation’s only Shariah- compliant financial institutions.

Indonesia sells $224mln Sukuk via private placement

From Dow Jones: Indonesia raised IDR2 trillion ($224 million) from a private placement of non-tradable Islamic debt, or sukuk, the Finance Ministry said Thursday.
The ministry sold the four-year sukuk at a yield of 7.13% to the Haj Fund, managed by the Ministry of Religious Affairs.

REG - QIB Sukuk Funding - Publication of Prospectus

The following prospectus has been approved by the UK Listing Authority and is available for viewing:
Prospectus for the issue by QIB Sukuk Funding Limited of sukuk certificates due in 2015 and to the value of $750,000,000.
To view the full document, please paste the following URL into the address bar of your browser.
http://www.rns-pdf.londonstockexchange.com/rns/9373T_1-2010-10-6.pdf

Sharia-compliant insurance firm launched in Kenya

The first Sharia-compliant insurance company in Kenya has been formed as the race for Islamic cash intensifies.
The firm, which will operate as Gulf Takaful Company Ltd, is being fronted by GulfCap Investments — the principal shareholder in Gulf African Bank.
Under the model, people seeking insurance cover will pay premiums to a collective fund from which payments will be made to members who suffer from the risks covered.
But unlike conventional insurance practice, the new insurance model, known in Islamic parlance as Takaful, is both an investment offering as much as it covers members.
Gulf African Bank will act as the fund manager for the insurance company, earning fees for its services to the insurance scheme.
Analysts say that by introducing Sukuk, the government could diversify the base of investors bidding for government debt papers, given the cash flush investors from the East who have shown interest in Africa as an investment destination.

AL BARAKA BANK EGYPT ESC plans Sukuk in 2011

AL BARAKA BANK EGYPT ESC, a unit of Bahrain-based Albaraka Banking Group, may sell dollar-denominated Islamic bonds in the second half of 2011, the bank’s chairman said Sept. 29. The bank has not decided on the size of the bond, he said.

CIMB, Citi, HSBC, StanChart to manage Islamic Development Bank's sukuk issue

Saudi Arabia-based Islamic Development Bank (IDB) has hired CIMB (KUL:COMMERZ), Citigroup (NYSE: C | PowerRating), HSBC (LON:HSBA) and Standard Chartered (LON:STAN) to serve as lead-managers of its planned sukuk offer, Reuters reports today, citing a source at one of the arrangers.
IDB will also launch a roadshow ahead of the dollar-denominated debt issue, according to the source.

Indonesia's 5-yr sukuk yield falls in auction

Indonesia's finance ministry said the average weighted yield for its five-year sukuk was 7.18862 percent in an auction on Tuesday, down 68 basis points from a previous auction in July.

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