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IILM seeks to secure primary dealers ahead of its maiden sukuk

Fri, 17 May 2013 11:48:18 +0300

By Al-Zaquan Amer Hamzah and Bernardo Vizcaino KUALA LUMPUR, May 17 (Reuters) - The International IslamicLiquidity Management Corp (IILM), which plans to issue itsmaiden sukuk by June this year, is facing its final hurdle as itaims to secure a network of distributors. The IILM, which was formed to address the shortage offinancial instruments for sharia-compliant banks to manage theirshort-term funding needs, is courting banks in various countriesto be 'primary dealers' or distributors to ensure a secondarymarket for the sukuk. "At the IILM, we have our own sharia board. ...

Islamic Development Bank picks banks for potential sukuk sale

Thu, 16 May 2013 11:32:24 +0300

DUBAI, May 16 (Reuters) - Islamic Development Bank, aJeddah-based multilateral institution, has picked eight banks toarrange a series of meetings with fixed income investors aheadof a potential sukuk issue, lead managers said on Thursday. The AAA-rated bank will host roadshows in the Middle East,Asia and Europe from May 25, with a dollar-denominated benchmarksukuk issue to follow the meetings, subject to marketconditions, the document from lead managers said. Benchmark size transactions are at least $500 million insize. ...

Islamic finance needs global sharia board - IDB president

Thu, 16 May 2013 11:19:15 +0300

By Al-Zaquan Amer Hamzah and Bernardo Vizcaino KUALA LUMPUR/SYDNEY, May 16 (Reuters) - The IslamicDevelopment Bank (IDB), a Jeddah-based multilateral institution,has called for the creation of a global sharia advisory boardthat can offer greater uniformity for the Islamic financeindustry, its president said on Thursday. A centralised format to the supervision of sharia-compliantbanking products is gaining favour across the globe, asregulators seek to standardise industry practices and improveconsumer perceptions. ...

Islamic Finance Gateway Daily Briefing

Thu, 16 May 2013 08:24:48 +0300

Thursday, May 16 - The Islamic Finance Gateway (IFG) Briefing,published from Sunday to Thursday, carries the latestmarket-moving news and data for institutions offering Islamicfinancial services. To view the full PDF version of the briefingclick here: http://link.reuters.com/xak28tTOP STORIES IFSB preps liquidity guidance for Islamic banks, warns of risks The Kuala Lumpur-based Islamic Financial Services Board(IFSB) plans to issue a guidance note for Islamic banks on theadoption of liquidity standards, warning lenders lackhigh-quality assets to meet new regulatory requirements underBasel III. ...

IFSB preps liquidity guidance for Islamic banks, warns of risks

Wed, 15 May 2013 08:58:38 +0300

By Bernardo Vizcaino SYDNEY, May 15 (Reuters) - The Kuala Lumpur-based IslamicFinancial Services Board (IFSB) plans to issue a guidance notefor Islamic banks on the adoption of liquidity standards,warning lenders lack high-quality assets to meet new regulatoryrequirements under Basel III. The IFSB sets global guidelines for Islamic finance,although national financial regulators have the final say ontheir implementation and enforcement. ...

Islamic Finance Gateway Weekly Briefing

Tue, 14 May 2013 08:57:11 +0300

Sunday, May 12- The Islamic Finance Gateway (IFG) Briefing,published from Sunday to Thursday, carries the latestmarket-moving news and data for institutions offering Islamicfinancial services. To view the full IFG Briefing click here:http://r.reuters. ...

MIDEAST DEBT-IILM treads fine line in designing maiden sukuk

Sun, 12 May 2013 08:03:26 +0300

* Based on different premise than other sukuk * Participation of all primary banks not yet certain * Crucial to achieve bid-ask spreads below 50 bps * Some hoping for 25 bps * May also be used as collateral for money market operations By Bernardo Vizcaino SYDNEY, May 12 (Reuters) - The International IslamicLiquidity Management Corp (IILM) faces a delicate task as itdesigns its maiden sukuk: it must make the issue attractiveenough for investors to buy, but not so attractive that most ofthem buy to hold. ...

Sukuk success for Saudi firms

Sat, 11 May 2013 03:00:00 +0300

The Guidance Financial Group (GFG) has advised Al-Bayan Group Holding Company on the establishment of a 1.0 billion Malaysian ringgit sukuk program and on a first issuance of RM 200 million sukuk wakalah under the program.The issuance has been assigned a rating of "AA3" by RAM Ratings Malaysia. This marks the first transaction of its kind, where a Saudi issuer successfully established a Malaysian ringgit sukuk program and issued a ringgit denominated sukuk. ...

IDB unit launches sovereign sukuk insurance

Thu, 09 May 2013 10:27:52 +0300

By Bernardo Vizcaino SYDNEY, May 9 (Reuters) - A unit of the Jeddah-based IslamicDevelopment Bank, a multilateral lending institution,has launched an insurance product designed to boost the creditratings of sukuk (Islamic bonds) for sovereign issuers. The Islamic Corporation for the Insurance of Investment &Export Credit (ICIEC), rated Aa3 by Moody's, hopes its insurancepolicy can help issuers tap into strong investor demand forinvestment-grade sukuk. ...

2012 ‘was a banner year for sukuk in Kingdom’

Thu, 09 May 2013 03:15:00 +0300

Sukuk has become a global trend, with countries increasingly finding it instrumental to develop their economies. This was among the conclusions stressed at the Eighth Euromoney Conference that ended here yesterday.The conference,which was opened by Finance Minister Ibrahim Al-Assaf, was attended by 1,200 senior financiers, business leaders and government officials. Housing Minister Shwaish Al-Duwaihy, Economy and Planning Minister Muhammed Al-Jasser and Abdullatif Al-Zayani also addressed the delegates at the inaugural ceremony. ...

Egypt's president signs Islamic bond bill into law

Thu, 09 May 2013 00:00:43 +0300

CAIRO, May 8 (Reuters) - Egypt's President Mohamed Mursi hasapproved a law allowing the state to issue Islamic bonds, theofficial gazette said on Wednesday, ending a troubled passagefor a bill the government hopes will help revive its flaggingfinances. Egypt's upper house of parliament, which has assumedtemporary legislative powers, approved the law last week afteramending it to meet recommendations from Al-Azhar, the country'sleading Islamic authority. ...

Major Dubai debt obligations in 2014-16

Wed, 08 May 2013 17:00:00 +0300

DUBAI, May 8 (Reuters) - Dubai and its government-relatedentities (GREs) have around $48 billion of debt obligationscoming due between 2014 and 2016, Standard Chartered estimates. Here are the major repayments which Dubai and its GREs willhave to make during that period. Borrower Amount Due date Dubai Holding 750 mln euro bond January 2014 Commercial Ops Dubai Financial $20 billion November 2014 Support Fund Dubai sovereign $1.25 billion bond November 2014 sukuk Dubai sovereign 2. ...

Saudi dairy firm Almarai eyes $500 mln sukuk sale - CFO

Wed, 08 May 2013 12:42:07 +0300

* Dairy company plans U.S. dollar sukuk in next 12 months * Proceeds to be used for growth, farms * Almarai could issue hybrid sukuk - CFO (Adds more CFO quotes, details) RIYADH, May 8 (Reuters) - Saudi Arabian dairy producerAlmarai Co plans to raise at least $500 million fromthe sale of a debut international Islamic bond to help tofinance ambitious growth plans, a senior executive said onWednesday. The company, which is the Gulf's largest dairy firm, haspreviously sold two Islamic bonds, or sukuk, in local currency,open only to Saudi institutional investors. ...

Saudi's SABIC says to issue sukuk for projects

Tue, 07 May 2013 15:52:11 +0300

RIYADH, May 7 (Reuters) - Saudi Basic Industries Corp(SABIC), the world's biggest petrochemicals group,will issue a sukuk late this year or next year to fund comingprojects, a senior company official said on Tuesday. SABIC has 40 billion riyals ($10.7 billion) worth ofprojects over the next few years and the company prefers to fundthese with sukuk, although "not at any cost", Chief FinancialOfficer Mutlaq al-Morished said on the sidelines of a financialconference. He said the timing of the sukuk would depend upon both thedevelopment of the projects and conditions in financial markets. ...

Egypt to replace finance minister in reshuffle - cabinet source

Tue, 07 May 2013 11:40:40 +0300

CAIRO, May 7 (Reuters) - Egypt's Prime Minister HishamKandil will remove Finance Minister Al-Mursi Al-Sayed Hegazy ina reshuffle expected to be completed later on Tuesday, a cabinetsource said. Hegazy is expected to be replaced by Fayyad Abdel Moneim,the source said, giving no further details. Hegazy is an expert on Islamic finance who was appointed inJanuary when Kandil last reshuffled his cabinet. Kandil has saidhe will replace 11 ministers in the reshuffle. (Reporting by Yasmine Saleh; Editing by Tom Perry)

Tatarstan prepares sukuk, to discuss Islamic banking with Moscow

Wed, 01 May 2013 18:39:59 +0300

By Andrew Torchia DUBAI, May 1 (Reuters) - The Russian republic of Tatarstanis preparing to make Russia's first issue of Islamic bonds andwill discuss ways to facilitate the growth of Islamic financewith authorities in Moscow, Tatarstan's president said onWednesday. "We are getting ready - it all depends on the financialmarket," Rustam Minnikhanov, speaking through a translator, saidin an interview while on a visit to the United Arab Emirates,where he is seeking investment in Tatarstan. ...

Qatar's QIB rules out 2013 sukuk issues - CEO

Wed, 01 May 2013 11:40:28 +0300

DOHA, May 1 (Reuters) - Qatar Islamic Bank (QIB),the Gulf state's largest sharia-compliant lender by assets, isnot expecting to issue more Islamic bonds before 2014, its chiefexecutive said on Wednesday. "I don't think it will be needed; there seems to be enoughliquidity currently," Bassel Gamal told reporters at aconference in the Qatari capital. QIB, whose biggest shareholder is the country's sovereignwealth fund, the Qatar Investment Authority, last tapped themarket with a $750 million five-year sukuk in October as part ofits $1.5 billion sukuk programme. ...

Albaraka Turk early price talk 7.75-8.00 pct for sukuk - IFR

Mon, 29 Apr 2013 10:04:55 +0300

(Adds pct in headline) LONDON, April 29 (IFR) - Albaraka Turk has revised pricethoughts to 7.75-8.00 percentfrom an initial 8 percent area on its 10-year non-call 5 sukuk.Launch and pricing will be later on Monday. BNP Paribas isglobal co-ordinator and is joined on the book by AlHilal Bank, Barwa Bank, Emirates NBD Capital, and Nomura. (Reporting by Sudip Roy)

Riyadh conference to discuss growing role of sukuk

Fri, 26 Apr 2013 03:10:00 +0300

The Kingdom’s increasingly high-profile role as a regional and global financial power will again come under the spotlight at a high-profile conference to be held in Riyadh next month.One of the key areas under discussion will be the role of sukuk in the development of debt capital markets.The rate of sukuk issuance accelerated significantly throughout 2012 and into 2013, particularly as new players entered the market. According to KFH, Saudi Arabia issued $ 10. ...

MIDEAST DEBT-Gulf banks, investors get involved in flood of Turkish issues

Thu, 25 Apr 2013 13:59:40 +0300

* Turkish issuers once focused on Europe, Gulf investorsinternally * Gulf now taking big share of arranging, allocations * Turkey's Islamic finance push is major reason * Long-term economic, political factors also behind shift * Turkish pricings look attractive after tumble in Gulfyields By Rachna Uppal DUBAI, April 25 (Reuters) - A $500 million sukuk fromTurkiye Finans this week was just the latest in a flood ofinternational debt issues from Turkey. But the identity of thearranging banks, and the investors who bought the issue, pointedto a shift in capital markets. ...

Al Bayan issues first ringgit sukuk from Saudi firm

Wed, 24 Apr 2013 15:32:20 +0300

DUBAI, April 24 (Reuters) - Riyadh-based Al Bayan Holdingbecame the first Saudi Arabian company to issue an Islamic bondin Malaysian ringgit, paving the way for more corporations fromthe kingdom to tap into Malaysia's market, the world's biggestfor sukuk. Al Bayan issued 200 million ringgit ($65.4 million) as thefirst tranche of a newly established 1 billion ringgitprogramme, a statement from Guidance Financial Group, thecompany's advisers, said on Wednesday. Pricing details were notimmediately available. ...

Turkiye Finans issues $500 mln sukuk at 3.95 pct -bankers

Wed, 24 Apr 2013 13:15:38 +0300

ISTANBUL, April 24 (Reuters) - Turkish Islamic bank TurkiyeFinans issued a $500 million sukuk, or dollar-denominatedIslamic bond, at a price of 3.95 percent on Wednesday, bankerssaid. The bank, majority owned by Saudi Arabia's NationalCommercial Bank, had mandated Citigroup, HSBV, NCBCapital and Noor Islamic Bank for the issue last week. (Writing by Ece Toksabay; Editing by Nick Tattersall)

Final price guidance on Turkiye Finans sukuk around 4 pct -bankers

Wed, 24 Apr 2013 11:09:01 +0300

ISTANBUL, April 24 (Reuters) - Final price guidance on thesukuk issue of Turkiye Finans, an Islamic lender known locallyas a participation bank, is around 4 percent, bankers said onWednesday. The bank, majority owned by Saudi Arabia's NationalCommercial Bank, had mandated Citigroup, HSBV, NCBCapital and Noor Islamic Bank for the issue last week. Turkey's Capital Markets Board approved earlier this monththe bank's application for a sukuk issue of $500 million. (Writing by Ece Toksabay)

UAE's Dana Gas shareholders approve sukuk restructuring

Tue, 23 Apr 2013 12:36:55 +0300

(Adds management comments, context) DUBAI, April 23 (Reuters) - Shareholders in Abu Dhabi-listedenergy firm Dana Gas approved a plan to restructureits $920 million Islamic bond, the company said. Last October Dana became the first company in the UnitedArab Emirates to miss repayment of a maturing bond, but itsubsequently agreed new terms with a creditor committeerepresenting bondholders, including investment firms AshmoreGroup and BlackRock. ...

MIDEAST DEBT-Saudi pull-out weakens, doesn't doom IILM sukuk plan

Thu, 18 Apr 2013 09:31:08 +0300

* Designed to fill product gap in Islamic finance * Saudi pull-out from IILM hints at tensions within body * Exit blocks IILM's concept of "universal sukuk" * But Saudi, other banks may still buy the issue * Strong demand expected from mutual funds as well as banks By Bernardo Vizcaino DUBAI, April 18 (Reuters) - A surprise pull-out of SaudiArabia from the International Islamic Liquidity Management Corp(IILM) may have deprived the body of a top credit rating, butits debut sukuk issue still looks set to be welcomed by a widerange of investors. ...

Al Baraka Turk plans 10-year, $200 mln sukuk in April/May -CEO

Wed, 17 Apr 2013 17:45:22 +0300

DUBAI, April 17 (Reuters) - Bahraini lender Al Baraka Bank's Turkish unit plans to issue a $200million, 10-year subordinated sukuk by the end of April or earlyMay, the Bahraini bank's chief executive Adnan Ahmed Yousif toldReuters on Wednesday. Al Baraka Turk, which signed a $450 million murabaha loan inSeptember, has appointed BNP Paribas, Al Hilal Bank,Barwa Bank, Emirates NBD and Japan's Nomura for theTier 2 sukuk, which will be callable on year five. Islamic banks in Turkey are issuing subordinated sukuk totake advantage of attractive pricing and improve their capitaladequacy ratios. ...

Fitch Assigns Turkiye Finans' forthcoming sukuk issue expected 'BBB(EXP)' rating

Tue, 16 Apr 2013 13:29:53 +0300

(Repeat for additional subscribers) April 16 (Reuters) - (The following statement was released by the rating agency) Fitch Ratings has assigned Turkiye Finans Katilim Bankasi A.S.'s (Turkiye Finans)forthcoming Sukuk issue an expected rating of 'BBB(EXP)'. Turkiye Finans is the originator of the Sukuk; and, certificates will be issued by a fully-owned SPV established in Turkey. The SPV will use 51% of the proceeds to acquire the beneficial interests and rights in a pool of leasing assets from Turkiye Finans. The profit from these assets will be distributed to the Sukuk investors. ...

Al Baraka's Turkey unit picks banks for Tier 2 sukuk - IFR

Tue, 16 Apr 2013 13:14:42 +0300

LONDON, April 16 (IFR) - Turkish participation bank AlBarakaTurk, a unit of Bahrain's Al Baraka Bank, hasappointed BNP Paribas, Al Hilal Bank, Barwa Bank,Emirates NBD and Japan's Nomura for a potential Tier 2sukuk issuance. IFR, a unit of Thomson Reuters, reported on Tuesday that thebanks will run a series of fixed income investor meetings in theMiddle East and Europe starting April 18. A Reg S only Murabahadollar-denominated Tier 2 sukuk transaction may follow subjectto market conditions. (Reporting by Abhinav Ramnarayan)

Turkiye Finans mandates for meetings on sukuk issue -bankers

Tue, 16 Apr 2013 09:27:50 +0300

ISTANBUL, April 16 (Reuters) - Turkiye Finans, an Islamiclender known locally as a participation bank, mandated banks forinvestor meetings on a dollar-denominated sukuk issue, bankerssaid on Tuesday. The bank, majority owned by Saudi Arabia's NationalCommercial Bank, mandated Citigroup, HSBV, NCBCapital and Noor Islamic Bank for the issue. Turkey's Capital Markets Board approved last week the bank'sapplication for a sukuk issue of $500 million and 100 millionlira ($55.78 million). ($1 = 1.7929 Turkish liras) (Writing by Ece Toksabay)

Oman's Alizz Islamic Bank eyes Q3 launch -COO

Tue, 16 Apr 2013 07:57:04 +0300

By Bernardo Vizcaino DUBAI, April 16 (Reuters) - Omani lender Alizz Islamic Bank, the second full-fledged Islamic bank in thesultanate, plans to begin operations in the third quarter ofthis year, chief operating officer Jamal Darwiche said. Oman is the last country in the six-nation Gulf CooperationCouncil to introduce Islamic finance; it granted licences toAlizz Islamic Bank and Bank Nizwa late last year androlled out detailed regulations in December. "We are currently on track for the launch of our productsand services during the third quarter of 2013," Darwiche toldReuters. ...

Qatar's Barwa Bank to raise $563 mln in share sales -CEO

Mon, 15 Apr 2013 16:03:08 +0300

* Bank to offer 50 mln shares at 21 riyals/shr in Doha IPO * Also to sell 50 mln shares at 20 riyals in rights issue * Seeking to boost capital for infrastructure boom - CEO * Will start obtaining credit rating this year * Talking with potential sukuk issuers By Regan Doherty DOHA, April 15 (Reuters) - Barwa Bank, a Qatari lenderpart-owned by an arm of the state's sovereign wealth fund, plansto raise 2.05 billion riyals ($563 million) through two sharesales including a public float on the Doha bourse, its topexecutive said on Monday. ...

Egypt clerics pick holes in Islamic bonds law

Mon, 15 Apr 2013 15:49:30 +0300

* Azhar scholars want nine of 31 articles amended * Sukuk law a point of tension between Islamists and clerics By Ahmed Lotfy CAIRO, April 15 (Reuters) - A law that will allow Egypt'sIslamist-led state to issue Islamic bonds contravenes the shariain numerous ways, according to a panel of senior Muslim clericswhose objections are likely to hold up ratification of thelegislation. ...

Malaysia's Islamic insurers hesitant on overseas investment

Mon, 15 Apr 2013 07:00:01 +0300

By Al-Zaquan Amer Hamzah and Bernardo Vizcaino KUALA LUMPUR/DUBAI, April 15 (Reuters) - Malaysia ispromoting overseas investment by its takaful firms(Islamicinsurers) as it seeks to internationalise its Islamic financeindustry, but a lack of expertise and low risk appetite arelikely to slow the drive. The takaful firms currently invest little abroad; a shiftfrom the safety of local assets to better-yielding instrumentsabroad could boost their profits while increasing demand forsukuk (Islamic bonds) from the Gulf. ...

Higher yield from HSBC products

Mon, 15 Apr 2013 03:00:00 +0300

HSBC Saudi Arabia Limited has announced that the board of directors of HSBC Amanah Sukuk Fund and the board of directors of HSBC Amanah GCC Equity Income Fund have approved distribution of dividends.The board of HSBC Amanah Sukuk Fund approved a dividend payment of $ 0.06 per unit for the quarter ended March 31, 2013 translating in an annualized yield of 2.5 percent at par value.Similarly, the board of HSBC Amanah GCC Equity Income Fund approved a dividend payment of SR 0.25 per unit for the six months ending March 31, 2013 translating in an annualized yield of 5.0 percent on par value. ...

Egypt's top religious authority approves Islamic bonds law

Thu, 11 Apr 2013 20:18:01 +0300

CAIRO, April 11 (Reuters) - Egypt's top religious authorityon Thursday put its stamp of approval on a law that allows thegovernment to issue Islamic bonds but said a few changes wouldhave to be made first. Al-Azhar, the leading Islamic authority, protested when thelaw was passed in March by the parliament dominated by theMuslim Brotherhood's Freedom and Justice Party, saying its topscholars should have been consulted. ...

STOCKS NEWS MIDEAST-Dubai resumes gains; small-caps dominate trade

Thu, 11 Apr 2013 09:37:32 +0300

0635 GMT - Dubai's bourse resumes a rally to hit a fresh40-month high but investors buy small-caps, a sign that retailtraders are making short-term bets. Deyaar Development rises 4.2 percent, Drake &Scull gains 0.6 percent. Dubai Investment adds 2.7 percent, up for a fourthsession as it catches up to other stocks' year-to-date gains. The firm plans to raise $300 million from the sale ofIslamic bonds, or sukuk, investor meetings for which is expectedto begin in May, the company's chief executive told Reuters onWednesday. Dubai's measure rises 1. ...

MIDEAST DEBT-Turkey to allow deeper use of Islamic bonds

Wed, 10 Apr 2013 16:23:05 +0300

* Only ijara type of sukuk currently being issued * New rules will allow range of other types * Issuers could take advantage of trends in demand * Could help to finance projects, infrastructure * Rules to be completed in a couple of months By Nevzat Devranoglu ISTANBUL, April 10 (Reuters) - Turkey is working on newregulations to allow wider use of Islamic bonds, a closelywatched move which could see sukuk issues employed by thegovernment and corporations for project finance andinfrastructure development. ...

Dubai Investments picks banks for $300 mln sukuk sale - CEO

Wed, 10 Apr 2013 14:40:54 +0300

DUBAI, April 10 (Reuters) - Dubai Investments plans to raise $300 million from the sale of Islamic bonds, orsukuk, investor meetings for which is expected to begin in May,the company's chief executive told Reuters on Wednesday. The conglomerate, which has interests in several sectorsincluding property and manufacturing, has picked Citigroup Inc, Nomura, and J.P. Morgan Chase & Co tohelp arrange the transaction, Khalid bin Kalban said. "We start the roadshows in May. Our target is to raise $300million," Kalban said in a phone call. ...

Fitch Rates Sharjah Islamic Bank's Trust Certificate Issuance Programme

Wed, 10 Apr 2013 11:33:58 +0300

April 10 (Reuters) - (The following statement was released by the rating agency) Fitch Ratings has assigned Sharjah Islamic Bank's (SIB; the originator; 'BBB+'/Stable/'F2') USD1,500,000,000 trust certificate programme a final rating of 'BBB+'. The issuing entity under the programme is SIB Sukuk Company III Limited (SIBIII). The ratings are assigned to the programme and not to the certificates issued under the programme. ...

Sharjah Islamic raises $500 mln in sukuk sale

Tue, 09 Apr 2013 17:39:25 +0300

* Sukuk prices at par with profit rate of 2.95 percent * Pricing tightened at launch * Deal is bank's second dollar debt sale (Adds launch details) DUBAI, April 9 (Reuters) - Sharjah Islamic Bank (SIB) sold a $500 million five-year Islamic bond at tighterpricing than initially indicated due to strong demand forsharia-compliant debt from the Gulf Arab region. The sukuk, maturing in 2018, priced at par with a profitrate of 2.95 percent, at the lower end of the final guidancerange of between 2.95 percent and 3 percent. ...