IslamicFinance.de

Saudi Arabian Mining Company received revolving credit worth SAR 9 billion to upsize the facility as well as to increase its financial flexibility. The credit was provided by a syndicate of 11 local and international banks.

Banque Saudi Fransi (BSF) wants to close a SR1.9 billion ($506.6 million) Lower Tier 2 Islamic bond issue. This should grow bank's subordinated debt or Tier 2 capital. Although the sukuks has a seven-year maturity, it is callable, so it can be repaid already after five years.

Saudi Arabia-based Saviola Group is about to launch a new Sukuk program, according to a filing on the Saudi exchange from December 15. The Sukuk will be issued in a series of tranches and its value will not exceed the Company's paid-up capital.

According to Ernst & Young’s World Islamic Banking Competitiveness Report 2013 which was released on Monday, global Islamic banking assets of commercial banks will most probably exceed $1.8 trillion next year. Compared to that, in 2011 the assets were worth $1.3 trillion. The robust growth of the Islamic banking industry continues its course on a global scale. The top 20 Islamic banks registered 16% growth in the last three years. Saudi Arabia in particular emerged as the largest market for Islamic assets.

The project Sarajevo City Center in Bosnia worth €130,000,000 has recently reached 60% completion. The project is conducted in partnership between International Investment Bank (IIB) and Al Shiddi Group. It is a hybrid complex which includes a number of main interconnecting features. A shopping mall is the central building of the complex together with an entertainment complex on 5 levels that cover an area of 49,500 square meters.

Alinma Bank has been assigned a long-term issuer default rating (IDR) of ‘A-’ with a stable outlook, a short-term IDR of ‘F2’, a viability rating (VR) of ‘bbb-’, a support rating of ‘1’ and a support rating floor of ‘A-’ by Fitch Ratings. The bank's IDRs, support rating and support rating floor reflect the view of the rating agency that if needed, support from the Saudi authorities is extremely probable.

Global Islamic banking assets are expected to reach over $1.8 trillion in the coming year. This forecast by Ernst & Young is significantly higher than some industry estimates published earlier. The Islamic banking industry continuously grows worldwide and manages to sustain its quick pace. The top 20 Islamic banks demonstrate growth rates of 16% during the last three years. Saudi Arabia appears to be the largest market for Islamic assets.

It is estimated that the total Islamic assets of the UAE are worth $75 billion. This sum puts the country on the third place regarding the global market for the Shariah-based banking industry. The worldwide assets in this area are expected to reach $1.8 trillion in 2013. The world's leader in Islamic assets is Saudi Arabia with an estimated total of $207 billion for 2011. The Islamic banking industry continues its rise as the top 20 Islamic banks grew 16% in the past three years.

According to Hasan S. AlJabri - CEO of SEDCO Capital - banks in Saudi Arabia have success in Shariah-compliant financing and arouse attention and excitement around the world. Together with some of the leading global managers SEDCO has been working on the development of sophisticated Shariah-compliant investments making them more rewarding than conventional investments. The reason for that is pointed out to be the low leverage.

At a recent extraordinary general meeting (EGM) the Savola Group gave its approval for the issuance of a sukuk. The bond's total total value shall not be higher than the company’s paid-up capital. THe EGM furthermore voted the delegation of the issuance of such tradable debt instruments to the Board the authority without reverting to the General Assembly.

Saudi Arabian financial services company Sidra Capital (Sidra) and Swiss alternative investment house INOKS Capital SA (INOKS) made an announcement about investments in various transactions by its jointly managed Sidra Ancile Global Structured Trade Finance Fund (STFIF). The joint facility totals $13.5 million. STFIF is regulated both by Saudi Arabia Capital Market Authority (CMA) and the Commission de Surveillance du Secteur Financier (CSSF) of Luxembourg. The fund has given approval to a number of investments in various transactions since the closure of its first offering of subscription in September 2012.

Saudi Arabian NCB Capital is about to launch a range of Irish-domiciled Islamic mutual funds. This way the company is broadening its investor base and tries to appeal to emerging market investors. The company manages US$12.1bn worth of assets. It has launched two funds investing in Saudi Arabian and GCC equities. NCB's plans include the launch of other funds including one that will invest in sukuk.

Earlier this week, the Islamic Corporation for the Development of the Private Sector (ICD) was host to a meeting on a high level discussing the launch of a new national home finance company with committed shareholders. The brand name of the company will be Bidaya. In particular, the status of the new company's development and plans concerning the next steps towards the launch were discussed. According to Khaled Al-Aboodi - CEO of ICD - the Mortgage Law together with the recent release of draft regulations give the industry clarity and direction which was very necessary.

This month, the first international mutual funds, which will be run by a Saudi Arabian manager, will be launched from Dublin. Equity funds investing in Saudi Arabia and the Gulf region will be launched by NCB Capital. The operations will be compliant to the principles of Islamic Sharia law. This move is considered to be a continuation of the bank's strategy to become a significant player in the sharia market.

CMA Board of Commissioners' resolution concerning its approval for Alinma Investment Company's offer of "Alinma Multi Assets Defensive Fund" and "Alinma Multi Assets Aggressive Fund" has been issued.

National Commercial Bank (NCB) has received the General Council for Islamic Banks and Financial Institutions' approval to become a member of the council. The resolution was made after a meeting in Jeddah. According to secretary-general of the council - Dr. Omar Zuhair Hafiz - the general assembly of the organization has nominated NCB to become a member of the council's board of directors. The bank's membership is likely to contribute to the promotion of the activities of the council through offering a series of innovative Islamic banking services and products.

The resolution of the CMA Board of their approval of the offering of Saudi ORIX Leasing Company’s sukuk has been issued. The total size of the offering has not been determined yet, this will be done at a later stage by the company. It is soon expected for the prospectus to be made public.

Weqaya Takaful Insurance & Reinsurance was assigned a BBB credit rating with a stable outlook by Standard & Poor's. Thus, its rating has been reaffirmed. The rating is based on continuous regular surveillance of the company's performance for the second year in a row by the rating agency. It is a reflection of Weqaya's competitive position and strong capitalisation.

According to a recent statement, Saudi Hollandi Bank has completed a SR1.4 billion ($373.3 million) sukuk issue. It is further said that despite the seven-year maturity of the subordinated sukuk, it can be redeemed by the issuer after the end of the fifth year. The price of the Islamic bond 1.15% higher than the six-month Saudi interbank offered rate. The issuance was marketed to Saudi investors, among which were government funds, banks, insurance companies, corporates and sophisticated investors.

SAUDI Hollandi Bank had emitted a sukuk in value of SR1.4 billion ($373.3 million) with a maturity period of seven years, but it can be redeemed by issuer already after the end of the fifth year. The aim of the issuance is mainly focused on developing the Islamic business of the bank by following prudent asset management strategy and assets-liabilities mix and maintaining a sufficient capital buffer.