IslamicFinance.de

Kuwait's Boubyan Bank issued $250 million Perpetual Tier 1 Capital Certificates, completed May 16, the first public sukuk from a Kuwaiti bank, the first public sukuk out of Kuwait since 2007 and the world’s first public fully Basel III-compliant Tier 1 sukuk. The certificates were made available on the Irish Stock Exchange and NASDAQ Dubai. The issuance was advised by Dentons. Joint coordinators included Standard Chartered, HSBC and Boubyan, Emirates NBD Capital, Dubai Islamic Bank, KFH Capital and National Bank of Kuwait. Co-managers of the transaction were Abu Dhabi Islamic Bank, Ajman Bank and Noor Bank.

Fisch Asset Management says Middle East credit ratings are likely to come under further pressure due to low oil prices and an increase in primary issuance will support market liquidity. According to Philipp Good, head of portfolio management at Fisch, the region has the highest average ratings globally, but budget deficits need to be addressed through a combination of investment and reform.

Shareholders with Bahrain-based Ithmaar Bank recently approved of the new group structure plans that will help the core retail banking business grow along with the bank’s strategic focus. The new plans were part of a proposal from the bank's board of directors and are still subject to approvals and further changes. The new structure will better allow the bank to compete with the global market. Ithmaar Bank Chairman Prince Amr Al Faisal said this new group structure will help lower the risk profile of the new banking entity and enhance shareholder value.

The Islamic Development Bank (IDB ) and the New Partnership for Africa's (NEPAD) Development Planning and Coordinating Agency (NPCA) recently signed a memorandum of understanding (MoU) concerning regional integration and cooperation. The MoU also concerned infrastructure, agriculture and food security, education and human capital development, climate change and natural resource management and economic and corporate governance. NEPAD aims to provide technical advisory services coupled with grant and seed funding to assist countries in their development agendas. The challenges to be addressed are access to knowledg, youth employment, sustainable rural development, adequate infrastructure and industrialization.

Maisarah Islamic Banking Services signed an agreement with Shaza Oman to fund the construction of its flagship five-star hotel in Muscat. The financing agreement was signed by BankDhofar's acting Chief Executive Officer Abdul Hakeem Al Ojaili; Al Madina Real Estate CEO Abdul Rahman Ba Omar; and GLOREI CEO Mohammad Al Ghassani. Under the agreement, Maisarah will finance the five-star hotel that is under construction by Shaza Oman Company SAOC. The project is in Al Khuwair, adjacent to Muscat Grand Mall, and is slated for a soft launch in December.

A.M. Best this week moved Abu Dhabi National Takaful Co. (ADNTC) from stable to positive with a financial strength rating of B++. ADNTC’s solid risk adjusted capitalization and track record of excellent underwriting processes are reflected in the new ratings. These positive factors were partially offset by an accumulated deficit within the policyholders’ fund and a modest, albeit growing, business profile. The revised outlook reflects ADNTC’s improved balance of earnings between policyholder and shareholder funds and enhanced enterprise risk management.

Arcapita recently acquired Phase One of Saadiyat Beach Residences, a premium residential apartment complex in Saadiyat, Abu Dhabi, for a reported $200 million. Built by Mubadala Development Co., the complex boasts three low-rise buildings in a gated community developed in 2013. It is under a three-year master lease to the Tourism Development & Investment Co. Arcapita has been actively sourcing for new real estate deals within the region, which includes Abu Dhabi. The firm's current focus sectors are residential and logistics. Additionally, on a global basis, Arcapita looks forward to closing a number of real estate and private equity transactions in the coming months.