Reuters

Dubai Islamic Bank hires banks to arrange dollar #sukuk issuance - document

Dubai Islamic Bank has hired regional and international banks to arrange a potential long five-year or seven-year dollar sukuk issuance. The bank hired Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, ICBC, KFH Capital, Sharjah Islamic Bank and Standard Chartered Bank to lead the potential Islamic bonds sale. They will arrange an investor call on Thursday and investor meetings in London on Tuesday.

Islamic Development Bank starts marketing dollar #sukuk

Saudi Arabia’s Islamic Development Bank began marketing a five-year dollar sukuk at high-40s basis points over mid-swaps. The bank has hired Citi, Dubai Islamic Bank, HSBC, Islamic Corporation for the Development of the Private Sector, LBBW, Natixis and Standard Chartered Bank to arrange the potential debt sale. The issuance is under Islamic Development Bank’s $25 billion trust certificate issuance programme and is expected to be of benchmark size. Benchmark size generally means upwards of $500 million.

BRIEF-Dar Al Takaful In Negotiations To Acquire Noor Takaful General And Noor Takaful Family

Dar Al Takaful executed a conditional offer letter to acquire 100% of shares of both Noor Takaful General and Noor Takaful Family. Completion of transaction is expected to take place in second quarter of 2020. After the transaction, Noor Takaful General and Noor Takaful Family will continue to conduct their business on an as is basis. Takaful policies underwritten by each of Noor Takaful Family and Noor Takaful General will remain unchanged and in full effect. Emirates NBD is acting as sole financial advisor on this transaction.

Saudi Arabia's Riyad Bank starts marketing 10-yr dollar #sukuk

Saudi Arabia’s Riyad Bank has started marketing 10-year dollar sukuk at around 225 basis points over mid-swaps. The Tier 2 subordinated sukuk sale is part of a $3 billion issuance programme. The bank hired JPMorgan, Riyad Capital and Standard Chartered to lead the deal. First Abu Dhabi Bank and HSBC are also involved in arranging the potential debt sale.

#Kuwait's KFH plans to drop assets of about 100 million dinars this year - CEO

Kuwait Finance House (KFH) plans to shed assets worth about 100 million dinars ($329.5 million) in 2020 as it finalises the acquisition of Bahrain’s Ahli United Bank. KFH has sold assets worth 137 million dinars in 2019 and achieved a profit of 40.1 million dinars. Kuwait's largest Islamic bank registered a net profit of 60.5 million dinars in the fourth quarter last year, up from 58.3 million one year earlier. After the acquisition of Ahli United Bank, the new entity will have assets of $101 billion and shareholder equity of $10.5 billion, with an annual forecast profit of $1.5 billion. This merger will be the Gulf’s first major cross-border bank merger in recent years.

#Bahrain's GFH hires banks to market five-year dollar #sukuk

Bahrain-based GFH Financial Group has hired Societe Generale and Standard Chartered to act as global coordinators and joint lead managers for the issuance of five-year dollar sukuk, The banks will market the bonds through a series of meetings starting on Jan. 15 in Asia, the United Arab Emirates and London. Emirates NBD Capital, KAMCO Investment, Mashreqbank, SHUAA Capital and Warba Bank will also serve as joint lead managers.

#Bahrain's sovereign wealth fund Mumtalakat hires banks for dollar #sukuk

#Bahrain’s sovereign wealth fund Mumtalakat has hired banks to arrange fixed income investor meetings ahead of a potential issue of U.S. dollar-denominated sukuk. The fund has picked Citi, Gulf International Bank, HSBC, National Bank of Bahrain and Standard Chartered for meetings in London, Asia and the Middle East. The deal could be the first international debt sale by a Gulf borrower this year. Mumtalakat raised $600 million in sukuk last year, having obtained orders of around $4 billion for the debt sale.

#Oman hires local banks for domestic #sukuk programme

Oman has hired local lenders Bank Muscat, Bank Nizwa and Alizz Islamic Bank to set up a sukuk issuance programme. It plans to issue five-year and seven-year Omani rial denominated sukuk, which will be open for subscriptions starting from Monday until Dec. 8.

#China-#Bahrain venture fund targets Middle East tech market

China’s MSA Capital and Al Salam Bank-Bahrain launched a $50 million venture capital fund to invest in sectors such as e-commerce and financial technology in the Middle East. The fund also plans to target big data, artificial intelligence, cloud computing, and logistics and networking systems. The $50 million MEC Ventures was raised from seed money, Chinese entrepreneurs and institutional investors and family offices from Gulf Cooperation Council countries. MSA Capital has existing investments in Chinese entrepreneurs who have taken the Chinese model into the MENA region.

Dubai Islamic Bank hires banks for dollar #sukuk

Dubai Islamic Bank (DIB) has hired lenders to arrange meetings with investors ahead of a potential issue of five-year dollar denominated sukuk. The selected arrangers include Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Islamic Corporation for the Development of the Private Sector, Maybank, Sharjah Islamic Bank, Standard Chartered Bank and Warba Bank. Investor meetings will take place in Hong Kong and London starting on Nov. 11.

Emaar Properties hires banks for 10-year dollar #sukuk deal

Dubai’s Emaar Properties has hired banks to arrange investor meetings ahead of the issuance of 10-year dollar sukuk. Emaar Properties will meet investors in Asia and London starting on Sept 6. Standard Chartered was hired to coordinate the deal. Other banks leading the transaction are Dubai Islamic Bank, Deutsche Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq Bank and Sharjah Islamic Bank.

Islamic Development Bank hires banks to raise more than $1 bln in #sukuk -sources

The Islamic Development Bank (IsDB) has hired banks to arrange a new issue of U.S. dollar-denominated sukuk, which is expected to be more than $1 billion in size. Hired banks include Emirates NBD, Standard Chartered, Gulf International Bank and HSBC and the transaction is expected to take place next month. IsDB was last in the market in April this year with a $1.5 billion five-year sukuk deal. It generally issues dollar-denominated bonds twice a year, and last year it also sold its first sukuk denominated in euro. The new transaction will be more than $1 billion in size, with one of the sources saying it could go up to $1.5 billion.

#Kuwait's Warba Bank plans $500 mln #sukuk issue this year - CEO

Kuwait's Warba Bank is working to set up a sukuk programme of up to $2 billion with an initial $500 million issuance this year. CEO Shaheen Al-Ghanem said the programme is subject to central bank approval. After the initial issuance this year, the rest would be issued over the next few years as needed and the proceeds used to finance operational matters. Ghanem added that the bank was looking to start a new asset management business this year aimed at overseeing about $500 million in investments within the next three years. Its launch is awaiting final approval from the Kuwait Capital Markets authority. The bank is looking to increase its total assets to over 3.5 billion Kuwaiti dinars ($11.52 billion) by 2022 from 2.59 billion dinars. Additionally, the bank is competing to lead a 350 million Kuwaiti dinar ($1.15 billion) loan for Kuwait Petroleum Corporation (KPC) that will likely involve multiple banks.

Sharjah Islamic Bank mandates banks for capital boosting #sukuk

United Arab Emirates’ Sharjah Islamic Bank has hired banks to arrange investor meetings ahead of an issuance of U.S. dollar-denominated sukuk. Citi, HSBC and Standard Chartered have been hired to coordinate the deal, and they are bookrunners along with Abu Dhabi Islamic Bank, Bank ABC, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, and KFH Capital. The planned sukuk deal will boost the bank’s Tier 1 core capital.

Saudi-based ITFC, Federated Investors to launch $300 mln trade finance #fund

The Saudi-based International Islamic Trade Finance Corp (ITFC) plans to launch a $300 million fund alongside U.S. fund manager Federated Investors. The sharia-compliant fund is expected to launch later this year and would invest in energy-related structured trade, supply chain financing and project finance assets of sovereign entities. The fund will be managed by ITFC with input from Federated Investors. The two firms have worked together on Islamic trade finance transactions since 2014.

New products, standards buoy Islamic trade finance business

Islamic trade finance is poised for change with the launch of new products and common standards. Islamic banks have been laggards in trade finance but some see a business opportunity here. According to the General Council for Islamic Banks and Financial Institutions (CIBAFI), digital tools such as blockchain can support this by helping to lower costs and speed up sharia-compliant transactions. Islamic trade finance is estimated at around $186 billion, compared to the $4.4 trillion worth of trade finance activity in Muslim-majority countries. Some firms are now introducing digital Islamic trade finance platforms. Emirates Islamic Bank has already launched its online supply chain tool. There is also a push towards standardisation of practices. The Bankers Association for Finance and Trade (BAFT) and the International Islamic Financial Market (IIFM) are developing standard documentation for both Islamic-funded and unfunded trade finance deals.

MOVES-#Britain's largest Islamic bank Al Rayan appoints new COO

Birmingham-based Al Rayan Bank appointed Paul McMillan as chief operating officer as part of the bank’s expansion efforts. McMillan, a former chief executive of mortgage servicing firm Acenden, takes over the role from the bank’s previous COO Venkat Chandrasekar. Al Rayan is one of the five standalone Islamic banks in Britain and is owned by Qatar’s Masraf Al Rayan.

#Afghanistan enlists faith-based banks to aid financial inclusion

Afghanistan hopes its first Islamic bank will attract more customers and improve access to financial services in the country. The central bank granted its first Islamic license last month and is now developing wealth management products and new digital banking services. There are currently six banks that offer sharia compliant products through so-called Islamic windows and their conversion would require setting up an internal sharia board and having a clean bill of health. The latter may be a challenge for some because of difficulties in converting impaired loans into Islamic equivalents. The government is also working on legislation that would allow for the issuance of sukuk, although such plans are still at a preliminary stage.

Islamic finance body AAOIFI issues #standard for agency contracts

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has issued its first standard covering wakala, or investment agency contracts. The guidance aims to address the use of wakala in areas such as over-the-counter instruments, treasury placements and Islamic bonds. Wakala is common as a standalone product, but AAOIFI opted to focus its standard on more complex instances where it is combined with other contracts. Islamic banks use wakala for both their short and long-term funding needs, and in recent years have incorporated the contract into hybrid sukuk versions. In wakala, one party acts as agent for another and the AAOIFI standard focuses on this principal-agent relationship. It states that the relationship does not transfer ownership rights of the assets to the agent, the principal should account for the assets in its accounting books. The standard also requires the principal to evaluate the nature of the investment at inception.

After downturn, Islamic finance eyes profits, #fintech: survey

Islamic banks and insurers are focusing on profitability and new financial products. Surveys by the General Council for Islamic Banks and Financial Institutions (CIBAFI) show a strong focus on fintech and digital transformation. Islamic banks are launching technology departments and forming joint ventures with fintech firms. The survey showed that technology-related risks have been steadily increasing and are now the biggest perceived risks. This means Islamic banks must ramp up product innovation efforts, as crowdfunding, P2P and payments platforms will be a major focus in the medium term. The CIBAFI survey on Takaful showed a mixed view on technology, suggesting concerns were focused on operational efficiency rather than innovation.

Syndicate content