Sichuan Development hires banks for $300 mln #sukuk -advisor

The investment arm of the Sichuan provincial government has hired four banks to help raise $300 million via Islamic bonds, the first such deal from a Chinese state-owned company. According to advisor Bobby Tay, the five-year sukuk will be raised through the leasing arm of Sichuan Development Holding (SDH) and is expected to be completed in the next two months. CIMB, Standard Chartered, Bank of China and Bank of China International have been hired to arrange the transaction, with proceeds to be used for the acquisition of sharia compliant assets in mainland China. The sukuk will include credit enhancement features and be listed in Singapore, with listing in other regional exchanges also being considered.

Jura Announces Entering Into Of Secured Long Term Syndicated Islamic Facility

Jura Energy Corporation has announced that its wholly-owned subsidiary, Spud Energy Pty Limited ("SEPL"), has entered into a secured long term syndicated financing arrangement totalling Pakistan Rupees ("PKR") 750 million (US$7,153,500) effective December 18, 2015. The syndicate is comprised of Al Baraka Bank (Pakistan) Limited ("ABPL"), the lead arranger and JS Bank Limited ("JSBL"), a related party of Jura, with participation of PKR 500 million and PKR 250 million respectively. The Facility will carry a mark-up at the rate of 3-month Karachi Inter Bank Offered Rate ("KIBOR") (6.48% using the State Bank of Pakistan posted rate on December 29, 2015) plus 2.75%, maturing five years from the date of disbursement.

Dubai Islamic Bank CEO Dr. Adnan Chilwan Discusses 'Treps Opting For Faith-Based Finance

CEO Dr. Adnan Chilwan, Dubai Islamic Bank (DIB) says that the Islamic finance sphere demonstrated a greater degree of resilience when compared to conventional banks during the most recent financial crisis. The bank also noticed an upswing of fresh clients, partly due to what he considers a shift in perception. DIB recently launched a comprehensive SME offering targeted towards the SME sector in the UAE. The product and services suite primarily focuses around the liquidity management and working capital finance needs of the customers across this segment, Mr. Chilwan explains. DIB is also pursuing a growth strategy, looking at opportunities in Indonesia and Kenya.

Indonesia’s new law to spur takaful

Indonesia's Islamic insurance market will be reshaped over the next decade by a new law that requires conventional firms to spin off their syariah-compliant units, while encouraging more foreign investors to enter the market. The new law, which came in force last month, requires insurers to spin off their windows within 10 years. Moreover, the law maintains an 80 per cent limit to foreign ownership, which will keep the market open to new players, while closing some loopholes that allowed foreign firms to have full control of their operations. The rules will also require larger and better trained sales forces since the spin-offs will require separate agents for conventional and takaful products.

Reuters: Turkey's main investors eye possible Sukuk

Cecilia Valente and Selcuk Gokoluk reported on 7 January on Reuters that the Sukuk planned by the Turkish government, finds potential buyers in Turkey's institutional investors like Oyak Emeklilik or AK Portfolio. On average, Turkish pension schemes allocate more than 70 percent of their assets to government bonds, with the rest in shares, repo or bank deposits.

Stanchart applies for Malaysia Islamic bank

Saeed Azhar reported on Reuters on 18th March, that Asia-focused Standard Chartered Bank has applied for a license to set up a separate Islamic banking unit in Malaysia, aiming to capture growth in a business that has escaped global credit turmoil.

Standard Chartered had $1.4 billion (699 million pounds) of Islamic banking assets in Malaysia at the end of 2007, more than double the year ago period, he said.

HSBC and Singapore's third-biggest lender, Oversea-Chinese Banking Corp , have already received regulatory approval to set up Islamic banking units in Malaysia.


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