Turkish lender Albaraka Turk has secured a $213 million murabaha-based loan syndication, up from the $150 million it initially sought. The bank said the profit margin for the 370-day sharia-compliant facility was 125 basis points over three-month LIBOR. The lender had appointed ABC Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital Ltd, Qatar Islamic Bank and Standard Chartered Bank to arrange the transaction. The bank is a unit of the Al Baraka Banking Group, which is also planing to issue dollar-denominated sukuk.
The secretary general of the IFSB will retire next week, according to a statement. Jaseem Ahmed will step down middle of April after leading the IFSB 6 years.
The process for the selection of a new secretary general has begun. Zahid ur Rehman Khokher acting as interim secretary general.
The Bank of England said it would develop a sharia-compliant liquidity tool for use by Islamic banks, to attract business from the industry's core centres. London has for some time sought to position itself as a global hub for Islamic finance.
The central bank has issued a consultation paper on a fund-based deposit model, that would help Islamic lenders to meet regulatory requirements for liquid asset buffers. It was stated, that the facility is unlikely to be ready before the spring of 2018, and it has yet to decide on whether it will develop a liquidity insurance facility. However, the tool would be a welcomed development for Britain's Islamic banks. These include Gatehouse Bank, the Bank of London and the Middle East, Al Rayan Bank and a unit of Qatar Islamic Bank.
The pricing would be comparable with conventional tools, and attractive for Islamic banks.
The merger of Qatari banks Masraf Al Rayan, Barwa Bank and International Bank of Qatar is said to take six months to complete, Masraf Al Rayan’s chairman Hussain Ali al-Abdulla said lately. In December Reuters had reported that merger talks had begun which, if successful, would create the Gulf state’s second-largest bank. The new bank would have assets worth more than 160 billion riyals ($44 billion).
KPMG and PricewaterhouseCoopers have been appointed as merger advisers, along with law firm Allen & Overy as legal adviser, and furthermore the Barwa Bank and International Bank of Qatar. Masraf Al Rayan’s shareholders approved the issuance of sukuk worth up to $2 billion to meet the bank’s liquidity needs. In January banks had been appointed to handle a debut sukuk issue of around $500 million, banking sources told Reuters that month, but Abdullah said on Sunday the timing of the issue had not been finalised. Asked whether the bank’s liquidity had been affected by low oil prices Abudullah said “liquidity now is better than in 2016” and that the U.S. Federal Reserve’s raising of interest rates last month would improve the profits of Qatari banks.
The shareholders of Qatar's Masraf Al Rayan, an Islamic lender, approved the issuance of sukuk worth up to $2 billion to meet the bank's liquidity needs on Sunday. The Gulf state's second largest lender by market value appointed banks in January to handle a debut sukuk issue of around $500 million, banking sources told Reuters that month.
Maybank Islamic is turning to its home markets for growth, in particularly Indonesia where it manages $2 billion worth of assets and is aiming to compete with domestic Islamic banks. According to CEO Mohamed Rafique Merican, the bank could grow beyond its core markets of Malaysia, Singapore and Indonesia, but expansion in other markets would be opportunistic. Indonesia remains a key market for the bank, after Malaysia which accounts for 90% of the bank's business. As part of the ASEAN banking integration framework (ABIF), Indonesia and Malaysia have agreed in August to give their banks greater access to each other's markets. The move would give Malaysia's Islamic banks a potential lead to tap into the world's biggest Muslim-majority country, and one that continues to restrict to foreign lenders.
Pakistan's central bank has updated guidance on sharia governance for Islamic finance institutions. The goal is to expand the scope of external audits to help mitigate conflicts of interest and increase transparency. Those religious scholars who are members of an Islamic bank's sharia board are now barred from serving in any external audit firm. From now on, external sharia audits will have to cover pool-management practices and technology systems. This includes the way Islamic banks calculate distribution of profit and loss to depositors, the tracking of assets, and the allocation of income and expenses. The move is designed to separate the verification of profit and loss distribution between the banks and the external auditors, in contrast to the joint verification that was allowed under earlier guidance.
Turkey's state grain board TMO and construction firm Gap Insaat have received regulatory approval for debut sukuk sales. Turkey has seen steady issuance of sukuk from the government and the country's Islamic banks, but an increase in corporate issuance could help tap into a much wider stable of issuers. According to the country's Capital Markets Board, the TMO will raise 150 million lira ($41.6 million) via a sukuk that will be arranged by Islamic lender Kuveyt Turk. Turkey is seeking to build a bigger role in the industry and forge closer ties with fast-growing economies in the Gulf and southeast Asia. The Turkish Treasury hired banks to arrange a sale of sukuk in the international markets, with meetings set to begin this week in the United Arab Emirates.
Shareholders of Kuwait Finance House (KFH) have approved issue of sukuk and other sharia-compliant financial instruments.
On March 15 Abu Dhabi Islamic Bank appointed Khamis Buharoun as acting CEO. The appointment of acting CEO Khamis Buharoun is in context of CEO Tirad Marouf Al Mahmoud's medical leave.
Abu Dhabi Islamic Bank (ADIB) is considering to make a U.S. dollar-denominated sukuk issue over the next few months. The Islamic lender would join a number of Gulf Cooperation Council banks raising debt internationally through both Islamic and conventional bonds to improve their liquidity. Bahrain-based Gulf International Bank was the first regional lender to raise debt internationally this year with a $500 million bond sale in January. It was followed by a $1 billion sukuk sale by Dubai Islamic Bank, a $500 million conventional bond by Ahli Bank Qatar and a $500 million bond by the United Arab Emirates’ Bank of Sharjah.
Algeria plans to raise money from an interest-free local bond in order to offset the huge fall in its energy earnings. The North African OPEC member has already cut public spending, introduced new taxes and reduced government subsidies on fuel. Finance Minister Hadji Baba Ammi said the new bond would not bear interest, which may help attract a greater number of Algerian buyers. The minister said bondholders would receive a share in projects that the issue would finance as an incentive. The government launched its first local bond last April, but it was harshly criticised by the religious community. While neighbours Morocco and Tunisia are developing laws for Islamic finance, Islamic banks and sukuk bonds, Algeria still has no legal framework for such operations.
Qatar International Islamic Bank approves capital increase of a newly established morocco-based Umnia Bank to 600 million moroccan dirhams.
Turkish participation bank Kuveyt Turk has received regulatory approval to raise 2 billion lira ($555.8 million) via sukuk, as it expands its domestic footprint while winding-down its Dubai unit. Kuveyt Turk, 62% owned by Kuwait Finance House , would sell the lira-denominated sukuk to qualified investors through its asset-leasing company, KT Kira Sertifikalari Varlik Kiralama, according to a regulatory filing. No timeframe or tenor were given for a potential deal. New funding could help the bank's plans to expand its branch network to 400 offices this year from a current 385. The bank increased its net profit by 22% and total assets by 15% in 2016. In December, however, the bank said it would terminate all activities of its wholly-owned subsidiary in Dubai, as it had not established a commercial advantage. It will continue to service the Gulf region via its branch in Bahrain, while concentrating on its operations in Turkey and Germany.
Halic Leasing is expanding its sharia-compliant business portfolio to tap demand from small businesses. This is a sign that Turkey's Islamic finance market is growing beyond traditional banking services. According to Halic's General Manager Gokcen Sahin, the company is building a portfolio of leased assets and is targeting new business of around $25 million by the end of the year. Halic also aims to attract further investments from Islamic mutual funds while expanding into construction equipment later this year. The plans come after the firm's new shareholders injected fresh capital at the end of last year and set up a sharia committee to ensure its products conform to Islamic principles. Gokcen Sahid added that with a good quality portfolio, Halic may also consider raising funds via sukuk in the future.
Dubai Islamic Bank will meet fixed income investors in London on Feb. 6 ahead of a potential sukuk issuance. A five-year benchmark issue, which usually means upwards of $500 million, might follow. The lender has appointed Bank ABC, Dubai Islamic Bank, Emirates NBD, HSBC, KFH Capital, Maybank Investment Bank Berhard, National Bank of Abu Dhabi, Sharjah Islamic Bank and Standard Chartered Bank as joint lead managers and bookrunners.
Turkey's privately-owned Aktif Bank has received regulatory approval to sell up to $120 million via sukuk. Turkey has seen steady issuance of sukuk from the government and the country's Islamic banks, but corporate issuance remains rare. Aktif Bank will sell the sukuk through its asset leasing company, Aktif Bank Sukuk Varlk Kiralama. Companies can sell sukuk directly by setting up their own asset leasing companies, but the process can be onerous for smaller firms. The government has previously granted tax exemptions for lease-based sukuk, but in August it extended those incentives to all other types of sukuk contracts.
#Singapore's Sabana Shariah Compliant Industrial Real Estate Investment Trust (REIT) clarifies the article published by Straits Times titled "Angry investors want REIT manager kicked out". Sabana REIT stated that the closing price of its unit was 37 cents on 24 Jan 2017. Sabana REIT clarified that the manager's fee structure is in line with market practice in Singapore's REIT sector. All acquisitions were approved by board of directors in accordance with property funds appendix and sgx-st listing manual.
Africa Finance Corp (AFC), a pan-African multilateral institution based in Nigeria, is likely to make a debut U.S. dollar sukuk issue by early February. If AFC makes a final decision to go ahead with the proposed debt sale over coming days, the sukuk will be issued in two or three weeks through a private sale. The sukuk would be structured with a murabaha format and use Nasdaq Dubai's platform for murabaha transactions. Mohamed Damak, global head of Islamic finance at S&P Global Ratings, said more sukuk issuance will come from Africa-based issuers over the next few years as borrowers seek to expand their investor bases. Another reason for issuers in Africa is that sometimes sukuk can be cheaper than conventional bonds, especially when it attracts significant interest from the market.
Dubai Islamic Bank (DIB) sold its stake in Jordan Dubai Islamic Bank. DIB held 20.8% in Jordan Dubai Islamic Bank through a 40% shareholding in MESC Investments. MESC Investments had completed the sale of its stake in Jordan Dubai Islamic Bank to Jordan-based Bank Al Etihad and Etihad Islamic Investment Company. The value of the sale was not disclosed.