IslamicFinance.de

The CEO of Kuwait Finance House-Turkey, Ufuk iwan, emphasized that the Islamic banking industry has reinforced its competitiveness during the economic crisis, and that Islamic banks weren't so vulnerable any more in front of the impact of the crisis that their traditional counterparts, since they deal in real products instead of relying on offering loans.
He added that by the end of 2010, Islamic banking assets reached 83 % of total Islamic assets in general, followed by sukuk 11 % and Islamic funds 4.6 %.

Stanbic IBTC Bank Plc (IBTCCB) was finally given approval by Nigeria’s central bank to provide Islamic banking services in Africa’s most populous nation.
Nigeria’s 150 million population is divided in an almost even way between Muslims and Christians, providing it with a market for Islamic banking products. The oppinion of Central bank Governor Lamido Sanusi ist that Nigeria wants to be a “hub of Islamic finance” in the region and plans to sell its first sukuk within 18 months.

Clifford Chance recently advised HSBC Bank Middle East Limited (HBME) regarding the update of its US$5 billion sukuk issuance programme and a US$500,000,000 issuance under the Programme.
As part of the update of the Programme, the existing Wakala structure of the programme had to be overviewed again in light of recent amendments to the UAE's laws. That is why HSBC and Clifford Chance spent a considerable amount of time developing an innovative structure, which utilised Mudaraba and Wakala arrangements, which sought to address the new laws in a manner that complied with the Shari'a requirements of HSBC whilst at the same time being marketable to Islamic investors globally.

The Islamic Bank of Thailand is going to sell Bt5 billion of domestic sukuk and US$150 million of global sukuk. The statement was given by Dheerasak Suwannayos, the bank's president.
He added that the Shariah-compliant bonds, which will be denominated in the Thai baht, will probably be sold in third quarter of this year and the global issue will follow.

It seems that the Islamic finance industry is curious in tapping Middle Eastern oil money to help fund Thai infrastructure projects, which could help it win a foothold in a market with only a small Muslim population.
During this week Malaysia issued a $2 billion sukuk, almost 30 % of which was consumed by Middle Eastern investors.
Infrastructure investment is expected to have a great start in Thailand as well as other Southeast Asian countries.

Malaysia plans a $2 billion global sukuk offering, with the sukuk launch arranged to be issued in early July.
The issue is Malaysia's second offering in two years and comes at a time when the global sukuk market is showing tentative signs of recovery.

The 1st Quarter 2011 issue of the Malaysian ICM quarterly bulletin published by the Securities Commission Malaysia (SC) is now available online.

After a landmark sharia REIT and local currency sukuk from Malaysia's Khazanah Nasional stirred the city-state's interest in wholesale Islamic banking, more Singapore companies are willing to raise Islamic financing.
Companies are looking for sukuk and Islamic private equity deals as an avenue to reach a broader class of investors, including those who can only put their money in assets that comply with religious principles. OCBC Al-Amin's chief executive, Syed Abdull Aziz Syed Kechik, added that these include Middle Eastern investors and government funds that invest according to Islamic tenets, such as Malaysia's Pilgrims Fund.

Nigeria plans to launch its first sovereign Sukuk within the next 18 months in an attempted move at boosting Islamic banking in West Africa's largest economy. The was no statement about how much sukuk will be issued.

Because of the recent launch by Bank Negara Malaysia of its new Islamic monetary management instrument, the Bank Negara Monetary Notes-Istithmar (BNMN-Istithmar), the attention of the global Islamic capital market is once again on Malaysia.
It seems that at the same time, the Malaysian government has appointed the local Maybank Group, the CIMB Group, Citigroup and HSBC to lead arrange a third global sovereign US dollar sukuk offering.

Sarawak Energy Bhd (SEB) plans to issue up to RM15 billion in Islamic debt notes.
RAM Rating Services Bhd revealed that SEB had proposed the Sukuk Musyarakah programme of up to RM15 billion. RAM Ratings said SEB’s generating capacity is set to triple within a relatively short time.

Dar Al-Arkan stated that it will not be necessary to return to the debt markets to help repay a $1 billion sukuk maturing in 2012 but does not rule out having to make some asset sales.
Dar Al-Arkan’s 2012 sukuk last traded at 82 percent of par value.
Up to $100 billion in corporate debt needs to be refinanced in the Gulf Arab region in 2011. That's why it is harder to refinance debt maturing afterward.

Saudi International Petrochemical Co (Sipchem) is expecting a raise up to 2 bln riyals (US$533.3 mln) from a planned Islamic bond offering to fund plant expansions. Deutsche Securities and Riyad Capital were appointed as joint lead managers for the sukuk.
Sipchem plans to part-finance three projects worth over US$1 bln with the sukuk sale.

The use of 30.2 trillion rupiah ($3.5 billlion) of state-owned assets was approved by an Indonesian parliamentary commission in order to guarantee government sukuk issues.

Mallam Sanusi Lamido Sanusi, Governor of the Central Bank of Nigeria (CBN), disclosed plans by the apex bank to sell its first ‘sukuk’ within 18 months.
The banking sector regulator has the strong oppinion that this will help arouse interest in Islamic banking in the country.

Gasprombank is building support for Sukuk but Russian legislation is missing. Executives from Gazprombank have been collecting interest in South East Asia. It seems that Alexander Kazakov, director of structured and syndicated finance at the bank, is claiming up to five companies were interested in Sukuk issuance.
AmanahRaya is also working to establish Kaz Haj, a pilgrimage fund, along with Kazakhstan's Islamic asset management company, Fattah Finance.
On the other hand, Aznan Hasan, Associate Professor at the International Islamic University Malaysia, warns that Russia will need to address its legal framework before Shari’ah-compliant transactions can go ahead.

Bahrain decided to end the three-month state of emergency and therefore the confidence in the island nation’s Islamic bonds is being restored.
The notes returned 4 percent this quarter, compared with 3.2 percent for sukuk in Dubai, 2.5 percent for Malaysia and 1.7 percent in Indonesia.
Yields on Bahrain sukuk climbed to 4.45 percent on March 15, the highest level in a year.

Nakheel stated that it has paid AED5bn ($1.36bn) in overdue payments to its trade creditors.
Through the restructuring proposal trade creditors will receive repayment through 40 percent cash and 60 percent in the form of an Islamic bond, or sukuk.

Although regulators lag behind in customizing laws for the industry, russian borrowers are pitching plans to sell the nation's first Islamic bonds.
Executives from Gazprombank are now in Southeast Asia to look for support for issuance by as many as five companies. The statement was given by Alexander Kazakov, director of structured and syndicated finance at the bank.

Sabic intends to purchase the assets of its first Sukuk amounting to SR3bn which was launched in July 2006. The Capital Market Authority (CMA) announced on June 12, 2011 its approval for Saudi International Petrochemical Company (Sipchem) to issue its debut Mudaraba Sukuk.