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Saudi Arabia's National Commercial Bank (NCB) has announced the sale of a capital-boosting Islamic bond, raising 1 billion riyals ($267 million) through a sukuk which will enhance its core capital. The kingdom's largest bank said on Monday the privately-placed sukuk, which would boost its Tier 1 capital, was Basel III-compliant and had a perpetual tenor, although the bank would have the right to call the sukuk on a predefined date. However, it did not disclose the call date in the bourse filing announcing the transaction. JP Morgan and NCB Capital, the investment banking arm of NCB, were the deal's arrangers. NCB joins a string of Saudi Arabian banks that have sought to replenish their capital reserves in the last couple of years, by issuing capital-boosting bonds and bonus shares.

The Malaysia unit of Japan's Toyota Motor Corp. plans to setup a 2.5 billion ringgit ($667 million) programme to raise funds via both conventional and Islamic bonds. The proposed programme from Toyota Capital Malaysia Sdn Bhd was rated AAA by RAM Ratings, and follows a 1 billion ringgit sukuk programme setup in 2008 that matured earlier this month. The Malaysia unit has two other conventional debt programmes that can raise a combined 1.8 billion ringgit; It sold a debut sukuk in 2008. The move comes at a time when Japanese firms are renewing efforts in the sector, with Japan's financial regulator relaxing rules for domestic banks to use Islamic financial products.

Kuwait International Bank has invited banks to participate in a $100 million debut Islamic loan to fund its general funding activities and the marketing of the deal should close by early August, it said in a statement. The bank will raise funds with a three-year lifespan and will pay a margin of 120 basis points over the London interbank offered rate (Libor). The lender will use a murabaha-structured facility, which is a cost-plus-profit arrangement, one of the most popular formats for structuring Islamic loans. Arab Banking Corporation and ABC Islamic Bank are the mandated lead arrangers for the transaction.

The Thomson Reuters Global Sukuk Index is at 118.04136 points, down from 118.42537 at the end of last month but up from 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 116.78976 against 117.32893 at end-May and 113.69014 at end-2014. Sukuk in the pipeline include: Malaysian mortgage lender Cagamas still hopes to issue sukuk this year off a $2.5 billion multi-currency programme set up last November, but foreign exchange volatility is hampering any issue in U.S. dollars. Shareholders of Qatar's Barwa Bank approved plans for a $2 billion senior unsecured sukuk programme that could be issued in various currencies. Dubai's Drake & Scull mandated five banks to arrange a series of fixed income investor meetings starting on June 4 for a potential issue of perpetual U.S. dollar sukuk.

Shareholders of Qatar's Barwa Bank approved plans for a $2 billion senior unsecured sukuk programme that could be issued in various currencies, the lender said in a statement on Tuesday. The Islamic bank did not specify a timeframe or size for a potential debut deal. It also received approval to pay a cash dividend of 10 percent to shareholders, the statement said.

Sukuk issuance by governments around the world is expanding, helping to bring Islamic finance into the mainstream. However, the sovereign issues are not encouraging sukuk sales by companies. Last year saw debut sukuk issues by the governments of Britain, Hong Kong, Luxembourg, Senegal and South Africa. Hong Kong tapped the market for a second time this week with a $1 billion deal. Since the five debut sovereign sales, no company has issued sukuk in those five economies. As a result, sovereign and quasi-sovereign issuers accounted for 85 percent of the $113.9 billion of sukuk deals done globally in 2014, and that proportion shows no sign of changing.

The Thomson Reuters Global Sukuk Index is at 118.48549 points, down from 118.50812 at the end of last month but up from 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 117.40807 against 117.54139 at end-April and 113.69014 at end-2014. Sukuk in the pipeline include: Indonesian leasing company Adira Dinamika Multi Finance aims to sell bonds worth 2.5 trillion rupiah ($190 million), split into a 2 trillion rupiah conventional portion and a 500 billion rupiah sukuk portion. Oman plans to sell its first sovereign Islamic bond, an issue of 200 million rials ($520 million) of sukuk, through a private placement and will launch subscriptions soon. Saudi British Bank plans a riyal-denominated sukuk issue.

Islamic lender Bank Asya has not yet filed all the documents sought by Turkey's banking watchdog BDDK after the regulators took over the bank's management and seized a small stake in it earlier this year, BDDK head Mehmet Ali Akben said on Wednesday. The government has said the management of the bank, founded by followers of President Tayyip Erdogan's ally-turned-foe Islamic cleric Fethullah Gulen, was taken over because it failed to meet some legal criteria.

Kuwait Finance House may auction some of its properties or offer them to be run by other operators, depending on market conditions, its chief executive Mazin Saad al-Nahedh without giving details. He also said KFH planned to cut tens of jobs as part of its restructuring plan, which would eliminate some positions. Some people would be moved to other subsidiaries. KFH said in early May that it was considering a possible sale of its Malaysian unit. That is the only unit earmarked for possible sale because it is outside the Middle East, Nahedh said. The bank is restructuring activities ahead of a planned divestment by its largest shareholder, the Kuwait Investment Authority. A timetable for the divestment has not been announced.

The Thomson Reuters Global Sukuk Index is at 118.28847 points, down from 118.50812 at the end of last month but up from 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 117.13915 against 117.54139 at end-April and 113.69014 at end-2014. Sukuk in the pipeline include: The government of Hong Kong hired four banks for a possible offer of U.S. dollar Reg S-only sukuk. Oman plans to sell its first sovereign Islamic bond, an issue of 200 million rials ($520 million) of sukuk. Malaysia's Aeon Credit Service said in mid-May it planned to raise 1 billion ringgit ($276.6 million) via sukuk murabaha for working capital, repayment of debt and financing for customers.

Saudi British Bank (SABB) is planning to sell a riyal-denominated sukuk that will boost its capital reserves, with an announcement set to be made as early as next week. The issue will boost SABB's Tier 2, or supplementary, capital and will be arranged by HSBC's Saudi Arabian unit. The sukuk could be worth 1.5 billion riyals ($400 million) and will have a 10-year lifespan but a clause that will allow the bank to redeem the issue at the end of the fifth year. Riyad Bank announced plans to issue a 4 billion riyal bond to boost its capital base earlier this week. It will have the same 10-year, non-call five, structure that SABB is planning to offer.

The Thomson Reuters Global Sukuk Index is at 117.39361 points, down from 117.49811 at the end of last month but up from 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 115.67036 against 115.48693 at the end of February and 113.69014 at end-2014. Sukuk in the pipeline include the following: Telekom Malaysia will set up a $750 million multi-currency sukuk programme to diversify its funding avenues and enhance its flexibility to raise capital. The emirate of Ras al-Khaimah has invited bankers to pitch for arranger roles on a potential U.S. dollar-denominated benchmark sukuk issue, the deal is expected before end-April.

The Thomson Reuters Global Sukuk Index is at 117.50283 points, up from 117.48601 at the end of last month and 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 115.60967 against 115.34912 at the end of January and 113.69014 at end-2014. Sukuk in the pipeline include: Emirates airline hired banks to help it arrange a sukuk issue of up to $1 billion, backed by UK Export Finance. The Malaysia-based International Islamic Liquidity Management Corp will auction $490 million worth of three-month sukuk and $500 million of six-month sukuk on Feb. 24. Oman's government is expected to conduct its first sukuk issue, for 200 million rials ($520 million), this year.

Emirates, the Dubai-based airline, has hired banks to help it arrange a sukuk of up to $1 billion, as the airline seeks to raise cash to finance its pipeline of aircraft orders. The issue will be backed by UK Export Finance (UKEF). UKEF expected to guarantee an Islamic bond in 2015 issued by a customer of Airbus, Britain finance ministry said in October. The upcoming U.K.-backed Emirates deal could close by the end of the first quarter. The transaction is likely to be worth up to $1 billion, with the lifespan being between five and 10 years. Eight banks are arranging the transaction: HSBC, Citigroup, JP Morgan , National Bank of Abu Dhabi, Dubai Islamic Bank, Abu Dhabi Islamic Bank, Emirates NBD and Standard Chartered.

The Thomson Reuters Global Sukuk Index is at 117.18203 points, down from 117.48601 at the end of last month but up from 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 115.24315 against 115.34912 at the end of January and 113.69014 at end-2014. The sukuk in the pipeline include: Jordan Islamic Bank plans a 10-year local currency sukuk issue by year-end. The Turkish Treasury said it would issue two-year, lira-denominated sukuk on Feb. 18 in volume of 1.8 billion lira ($736 million). Abu Dhabi Islamic Bank plans to issue capital-boosting Islamic bonds in Malaysia. Qatar International Islamic Bank is seeking shareholder approval to raise up to 3 billion riyals ($825 million) through a capital-boosting sukuk issue.

The Islamic Finance Gateway (IFG) Briefing, published from Sunday to Thursday, carries market-moving news and data for institutions offering Islamic financial services. Stories include: Islamic finance looks to outgrow bad habits as it expands. The United Arab Emirates Insurance Authority has issued new rules for conventional and Islamic insurance firms. Pakistan's central bank governor has urged the country's Islamic banks to develop ways to reward their customers in line with a surge in the sector's profitability, or face regulatory action. The Islamic Finance Briefings also include Islamic Interbank Benchmark Rates, major FX and equity market movements and indicators for all sharia-compliant asset classes. You can view the full IFG briefin http://tmsnrt.rs/1D83Hb0 under IFG Briefings Subject.

The Thomson Reuters Global Sukuk Index is at 117.48601 points, up from 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 115.34912 against 113.69014 at end-2014. Some of the sukuk in the pipeline are: Ivory Coast plans to make a debut 200 billion CFA franc ($340 million) sukuk issue in 2015. Qatar Islamic Bank plans to raise up to 2 billion riyals ($549 million) through a capital-boosting sukuk issue. The Islamic Corporation for the Development of the Private Sector plans to tap Islamic capital markets to raise as much as $1.2 billion in long-term funds during its current financial year.

The Thomson Reuters Global Sukuk Index is at 116.87897 points, up from 115.79726 at the end of last month. The Thomson Reuters Investment Grade Sukuk Index is at 114.80806 points against 113.69014 at end-December. The sukuk in the pipeline include: Ivory Coast plans to make a debut 200 billion CFA franc ($340 million) sukuk issue in 2015. International Bank of Azerbaijan also plans to issue $200-300 million of debut sukuk this year. Malaysia's UniTapah Sdn Bhd plans to issue up sukuk murabaha of up to 600 million ringgit. Kenya will issue its debut sukuk in the next financial year to June 2016.

The Thomson Reuters Global Sukuk Index is at 116.70135 points, up from 115.79726 at the end of last month. The Thomson Reuters Investment Grade Sukuk Index is at 114.76183 points against 113.69014 at end-December. The sukuk in the pipeline include the following: Bank Islami Pakistan plans to raise 3.5 billion rupees ($34.8 million) via subordinated sukuk. Turkiye Finans received regulatory approval for a 71 million lira sukuk issue by trailer manufacturer Tirsan Treyler Sanayi ve Ticaret. Malaysia Building Society Berhad is planning a second issuance of its structured covered sukuk commodity murabaha programme, aiming to raise up to 700 million ringgit. Oman's government will make its first issue of rial-denominated sukuk for the domestic market as soon as in the first quarter of 2015.

Tunisia will delay its planned issue of $500 million in Islamic bonds until the third quarter of the year to allow parliament time to rectify a law concerning the sale, Finance Minister Hakim Ben Hamouda said on Monday. Tunisia had initially said it would issue the Sukuk by the end of last year.