IslamicFinance.de

HSBC is searching for mandates for Islamic bond issuance in 2011 that are above pre-crisis levels, with at least one more sukuk expected to come to market before mid-July.
Mohammed Dawood, managing director of global capital financing at HSBC, stated that debt capital markets have experienced a comeback in recent months, as the cost of borrowing came down and liquidity levels for Islamic bonds reached the highest level they have seen been in four or five years.

The Central Bank Governor, Malam Sanusi Lamido Sanusi has the strong oppinion that Nigeria has the potential to become Africa’s Islamic banking hub. According to him, the present economic reforms and favorable ranking by global rating institutions, have improved Nigeria’s profile as a viable investment destination.
The News Agency of Nigeria (NAN) reports that Islamic banking is a financial system that is based on adherence to the Shariah or Islamic law.

Some trade creditors of Nakheel are offering a potential 1.6 billion US dollars Islamic bond by the developer at a discount in the secondary market as a desperate need for cash outweighs hopes for a full repayment.
Nakheel plans to repay 60 percent of its debt to trade creditors through the sale of a six billion United Arab Emirates (UAE) dirhams ($1.63 billion) Islamic bond, expected by the end of the first half.

The latest list of Shariah advisers serving the local Islamic capital market (ICM) and registered by the Securities Commission of Malaysia (SC) reveales that five such individual foreign advisers are registered with the commission.
The list, published recently in Kuala Lumpur, displays that Malaysia has 45 individual Shariah advisers and 10 Shariah advisory companies registered with the commission, who are authorized to provide such advisory services to market players in the local ICM, which includes investment funds, asset management, unit trusts, sukuk, private debt securities and other fixed income instruments.

Egypt’s National Bank for Development (NBD) has revealed its new new Shari’ah-compliant medium-term savings product that offers an annual profit posted on monthly basis with expected profit rate ranging between 9-9.25 per cent.

Bloomberg, attended by Bank Negara Malaysia, has launched a Malaysian Foreign Currency Sukuk Index (BMSSUTR), a non-ringgit denominated index.
The new Bloomberg index will provide a global benchmark for the performance of sukuk bonds and the possibility to track movements of foreign currency issues.

Noor Islamic Bank expects to win at least two mandates to help sell sukuk out of Turkey this year. The statement was given by Chief Executive Officer Hussain Al Qemzi.

Hawkamah Institute for Corporate Governance will launch a template for sukuk ijarah. The purpose is to cut the cost of issuing the debt and strengthen the Islamic finance business. Thi statement comes from Nasser Saidi, the executive director.
The institute expects to release the document by year-end.

In order to spur investments from the neighbouring Arab region and Southeast Asia, Egypt will launch its first Islamic debt guidelines and amend its capital market law.
This move will allow Islamic investors to invest in the 180 companies listed on the Egyptian stock market.

National Bank for Development (NBD) and Abu Dhabi Islamic Bank launched "5 years Sukuk plus". This term means an Islamic Shari'a compliant medium term saving product in Egyptian pound. It will give customers annual profit posted on monthly basis with expected profit rate ranging between 9% and 9.25%.
The minimum value of "5 years Sukuk plus" is EGP1000 and multiples. The Sukuk profit is posted on the customer's account on the first day of each month.

Egypt will launch its first Islamic debt guidelines and amend its capital market law in a try to spur Arab investment and open itself to investment from the Persian Gulf and Southeast Asia.
This will allow oil-rich countries to invest in the roughly 180 companies listed on the Egyptian stock market.
A statement published by the financial watchdog's website revealed that the proposal will be discussed by experts and other involved parties before being floated for final approval by Egypt's cabinet.

The reason for the fact that rate of return on Islamic Development Bank’s Shariah-compliant bonds sold last month was triple that of Gulf sukuk is that investors looking to own the highest rated debt sold this year.
Islamic Development is rated AAA, the highest investment grade, at Moody’s Investors Service, Standard & Poor’s and Fitch Ratings.

Esso Malaysia Bhd has begun the negotiations to establish a RM300mil seven-year Islamic Commercial Papers Programme (Sukuk Programme).
Issues from the programme would be used to finance Esso’s syariah-compliant business.

Ranhill Power Sdn Bhd has launched a RM800mil nominal value sukuk musharakah, with a tenure of between two and 15 years.
The issue raised will finance in full the redemption of the US$220 million guaranteed notes issued by Ranhill (L) Ltd and to fund the finance service reserve account requirements.

The permanent debt woes in Europe and persistent political tensions in the Middle East have influenced the global indexes in May. The DJIM Citigroup Sukuk Index -- which measures the performance of investment-grade-rated, U.S. dollar-denominated Islamic bonds -- posted the largest gain, closing 0.94% higher to reach 129.85 points, as of the close of trading on May 24.
The DJIM Pakistan Index also gained 12.67% since January 1, 2011.
The DJIM China Offshore Index plummeted 8.65% to 3,465.53, while the DJIM BRIC Index lost 8.56% to 2,114.90.

Esso Malaysia Bhd has redeemed and cancelled its RM300m ($98m) Islamic commercial paper notes from their 2004/2011 program because it has decided to propose a new 2011/2018 Islamic commercial paper program of the same size that received a preliminary short-term P1 rating from RAM Ratings.

It appears that Malaysia is planning a 10-year Sukuk denominated in the beleaguered currency.
Before 2010 issue Malaysia had only tapped the international Islamic debt capital market on two occasions before: once in 2002 and once in 2001. The 2002 issue was also a 5-year Ijarah Sukuk and was for $600m.

Last week Dubai’s Islamic bonds had the smallest results in six months.
The rate fell to a record low of 4.6 percent on May 19. The average yield of Gulf sukuk was unchanged last week at 4.55 percent altough the yields on Bahrain’s government bond dropped. It couldn't have been a more poorly moment because the investors reckoned on the Emirates as being a safe area.

Islamic Development Bank (IDB) conducted a roadshow in Asia, the Middle East and Europe. This is part of a resource mobilization plan.
The roadshow began in the UAE and reached London where the bank has successfully priced, $750 million, 5-year, Trust Certificates (sukuk) issued at par with a 2.35 percent semi-annual profit rate under its $3.5 billion Trust Certificate Issuance Program.

It appears that Malaysia is going to choose Maybank Investment Bank Bhd, CIMB Investment Bank Bhd and HSBC Amanah Malaysia Bhd to advise on a global Islamic sovereign bond to raise more than US$1 billion. An anonimous source told that this could start even next month.
The government seems to be arranging a 10-year dollar-denominated sukuk, in its second sovereign sale of Shariah-compliant debt in a year.