IslamicFinance.de

The well-diversified Al Ghurair Group has signed a USD 347.2 mn (AED 1.275 bn) Islamic facility with a group of financial institutions including Mashreq. The facility has been structured in Ijara and Musharaka that require a sale and lease-back of the asset owned by the client.

Standard Chartered and Mashreq, which is majority owned by the Al Ghurair Group, were the lead book-runners and participating banks include First Gulf Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Arab African Bank and Ajman Bank.

Dubai Islamic Bank is set to implement this year its joint-venture with Jordan Dubai Capital and Dubai International Capital to invest in Industrial Development Bank and convert it to the Jordan Dubai Islamic Bank.

Dubai Islamic Bank is considering raising AED 3 bn (USD 817 mn) in fresh capital and converting emergency government deposits into regulatory capital. The bank's board of directors would discuss the two measures on March 25, the bank said on Tuesday in a statement on the bourse website.

Rival banks, such as Union National Bank, National Bank of Abu Dhabi and Emirates NBD Bank in the UAE have already launched similar moves.

PARIS (Standard & Poor's) March 17, 2009--Standard & Poor's Ratings Services said today that it has placed its long-term counterparty credit ratings on four Dubai-based banks, namely Emirates Bank International PJSC (EBI), National Bank of Dubai (NBD), Mashreqbank, and Dubai Islamic Bank (DIB) on CreditWatch with negative implications (see ratings list below). The 'A-1' short-term ratings on EBI, NBD, and Mashreqbank were also put on CreditWatch with negative implications, while the 'A-2' short-term rating on DIB was affirmed. This action reflects our growing concerns regarding the impact on the banking sector of the economic downturn in Dubai.

Adam Schreck wrote on 10 March on Associated Press that Dubai Islamic Bank sets aside cash amid fraud probe and that it has foreclosed on a real estate project after court papers indicated the bank was the victim of a half-billion dollar fraud. In a statement, Dubai Islamic Bank said it had exposure of about USD 330 mn to a company named CCH linked to some of the suspects in the court papers.

Andy Sambidge reported on 25 February in Arabianbusiness that Dubai Islamic Banking reported only a small decline in net profit in 2008, AED 1.73 bn (USD 471 mn) in net profit for 2008. DIB’s total assets as of December 31, 2008, stood at AED 84.6 bn, up slightly compared to the end of the same period in 2007.

DIB’s full-year results reflected total impairment provisions of AED 521 million (including writedowns on its investment portfolio) and mark-to-market losses on equity investments of AED 277 million. The majority of these were recorded in the fourth quarter of the year, one of the primary reasons impacting profitability during the last quarter of 2008.

The Board of directors of Dubai Islamic Bank has proposed a cash dividend of 25 percent and bonus share of five percent for 2008.

According to a report of Global Investment House more than 100 Sukuk equivalent to more than USD 38 bn are awaiting issuance if markets recover.

DIB Capital, a 100 % subsidiary of Dubai Islamic Bank, sees the long term prospect as strong for the Sukuk market according to Nadeem Lodhi, head of capital markets and syndications. Also they are planning to launch a Sukuk fund.

Dubai Islamic Bank (DIB) announced the official re-launch of Jordan-based Industrial Development Bank (IDB) following the completion of a private placement of 26 million shares of IDB, valued at USD 100 mn. As part of the re-launch, IDB has been transformed into an Islamic financing institution to be known as Jordan Dubai Islamic Bank (JDIB).

The parties involved in the private placement transaction include Jordan Dubai Financial (JD Financial), the investment arm of Jordan Dubai Capital, DIB and Dubai International Capital. The private placement was valued at JOD 2.750 per share, based on the pricing equation adopted by the bank's Shareholders General Assembly, wherein the strategic partner, Mesc Investment, covered the entire placement.

Rebecca Bundhun reported on Arabianbusiness on 29 January that Dubai Islamic Bank partners with Hawkamah Institute has signed a "founding member" sponsorship agreement with corporate governance organisation the Hawkamah Institute.

The Guardian reported on 25 April that Pakistan appointed advisers for first domestic Sukuk, being Dubai Islamic Bank and Standard Chartered Bank Pakistan as Managers. The estimated size of the Sukuk might be 20 bn Pakistani rupees.

Ashfaque Hasan Khan is special secretary at the Finance Ministry.

Source: http://www.guardian.co.uk/feedarticle?id=7484821

Finalternatives reported on 22 April that Millennium Private Equity has held a first close on its Global Energy Fund, which has raised USD 200 mn, and its Telecoms, Media & Technology Fund at USD 150 mn. Both are targeting USD 1 bn in equity. The funds shall have a tenor of 7 years, targeting 20 % IRR and investing between USD 20 to 100 mn per transaction.

Sponsors of the funds include Dubai Islamic Bank, United Gulf Bank, the Bahrain-based investment banking arm of the KIPCO Group of Kuwait, and the Saudi Arabian Islamic Development Bank, each conbtributing USD 50 mn to each fund, as well as Kuwait Finance House, which invests USD 50 mn into in the Global Energy Fund.

Keba Keinde is chief executive of Millennium Finance Corporation and chairman of Millennium Private Equity. Millennium Private Equity, a subsidiary of Millennium Finance Corp., is based at the Dubai International Financial Centre.

Source: http://www.finalternatives.com/node/4155

Rania El Gamal reported on 23 April in Arabien Business that Kuwait's Abyaar Real Estate Development is in the process of getting a credit rating to help it sell between USD 250 to USD 500 mn of Sukuk for general expansion. Abyaar is talks with NBD Investment Bank, a unit of Emirates NBD. Merill Lynch is advising on the sale for another specific project in Dubai about USD 500 mn.

Abyaar has other financing arrangements with Dubai Islamic Bank, Emirates Islamic Bank, Kuwait's Global Investment House and Rasameel Structured Finance.

Abyaar has said it wants to expand in Saudi Arabia, Qatar and is seeking opportunities in Turkey, Malaysia and Singapore.

Marzouq al-Rashdan is vice-president of Abyaar.

Source: http://www.arabianbusiness.com/517396-kuwaits-abyaar-seeks-credit-rating...

Mohammed Abbas reported on Arabian Business on 27 April that state-owned Nakheel, developer of three palm-tree shaped islands off Dubai's coast, set price guidance for the 2-year USD 1 bn Sukuk Al Ijara at 225 to 250 basis points above the Emirates Interbank Offered Rate (Eibor). The Sukuk will be denominated in Dirham. 3-month Eibor is at about 1.92 %, according to data from newswire Reuters. Date for sale is not yet set.

Dubai Islamic Bank, JPMorgan Chase & Company and Dubai-based Emirates NBD are Arrangers.

Kar Tung Quek is Nakheel Chief Financial Officer (CFO).

Source: http://www.arabianbusiness.com/517621-nakheel-sets-1bn-bond-price-guiden...

Gulf News reported on 19 April about the USD 400 mn, 5-year dual currency syndicated Ijara facility for the UAE-based Al Jaber Group.

BNP Paribas, Dubai Islamic Bank (through its investment banking arm, Millennium Capital Limited) First Gulf Bank, and National Bank of Abu Dhabi served as the underwriters and bookrunners for the transaction, which has been priced in both US dollar and UAE dirham. The syndicate comprised 7 banks.

Obeid Al Jaber is the Chairman of Al Jaber Group.

Source: http://archive.gulfnews.com/business/Banking_and_Finance/10206883.html

Business 24/7 reported on 16 April that Dubai International Capital (DIC) talks with Dubai Islamic Bank about setting up a Shariah-compliant Islamic bank in Jordan.

Sameer Al Ansari heads Dubai International Capital. DIC manages a $500 million (Dh1.8 billion) fund investing in Jordan.

Source: http://www.business24-7.ae/cs/article_show_mainh1_story.aspx?HeadlineID=...

Reuters reported on 7 April that Pakistan has shortlisted six banks to manage a local currency sukuk to be mandated according to sources Reuters spoke with, those are ABN Amro Pakistan, Dubai Islamic Bank, Meezan Bank, MCB Bank, Standard Chartered Bank Pakistan, United Bank Ltd. Last month the finance minster, Salman Shah, indicated the issuance till 30 June, the end of the fiscal year. A banker familiar with the plans estimates the size at least to be Rps 20 bn (USD 318 mn).

Source: http://in.reuters.com/article/asiaCompanyAndMarkets/idINISL24089920080407

Al Bawaba reported on 30 March on the new share holder of Millenium Finance Corporation (MFC), which is United Gulf Bank BSC (UGB).

MFC, a Dubai Financial Services Authority (DFSA) licensed investment bank, was established by an experienced team of bankers from major international investment banking firms, in partnership with DIB. UGB is the investment banking arm of the KIPCO Group, Kuwait.

Khaled Al Kamda is Chief Executive Officer of Dubai Islamic Bank, Masaud Hayat, Managing Director of UGB, Keba Keinde, Chief Executive Officer of MFC, and William Khouri, Chief Executive Officer of UGB all signed off the transaction.

Source: http://www.albawaba.com/en/countries/UAE/224596