IslamicFinance.de

56 major Islamic bond issues in the global pipeline.
The Thomson Reuters Global Sukuk Index is at 117.67354 points, down from 118.24280 at the end of last month but up from 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 115.75520 points against 116.64293 at end-October and 113.69014 at end-2014.

Turkish Islamic bank Kuveyt Turk has mandated six institutions for a sukuk with a value of up to $400 million with a maturity of 10 years, it said in a statement to the Istanbul stock exchange late on Thursday.
Kuveyt Turk Participation Bank, which is 62 percent owned by Kuwait Finance House, said it had mandated KFH Capital, Dubai Islamic Bank, HSBC, Noor Bank, QInvest and Emirates NBD as joint lead managers. Sources familiar with the matter told Reuters in September that seven banks had been picked to arrange a potential deal.

Albaraka Turk Kat?l?m Bankas? (Albaraka Türk), has mandated seven banks to arrange a Basel III compliant Reg S tier two subordinated sukuk — only the second from Turkey and the first in sukuk format.
The roadshow for the bond starts on Friday, with meetings taking place in Europe, Asia and the Middle East.

More than one-third of small and medium enterprises in the Middle East and North Africa are out of the purview of banking sector and there exists a funding gap of up to $13bn for SME Islamic financing in the region.
Moreover sukuk, or Islamic bonds, have gained real momentum with many non-Muslim countries raising funds through these instruments, said Malaysian Premier Dato Sri Mohamad Najib bin Tun Haji Abdul Razak at the 11th World Islamic Economic Forum (WIEF), which got underway here yesterday and attended by more than 3,000 delegates from 98 countries.
“35% of SMEs in the Mena are excluded from the formal banking sector. Indeed, there is a financing gap of up to $13bn for SME Islamic financing in this region,” Razak said, quoting a study by International Finance Corp (IFC).

Abu Dhabi Islamic Bank repaid its maturing five-year, $750 million sukuk this week from its own sources without refinancing it, the bank said on Saturday.
Abu Dhabi's largest sharia-compliant bank made a net profit of 503.2 million dirhams ($137 million) in the quarter to Sept. 30, up from 476.8 million a year earlier, it reported previously.
Chief Executive Tirad al-Mahmoud told Reuters last month that the bank had no current plans to raise more capital after a recent rights issue, adding that it would eschew expansion to focus on existing markets.
Bank lending growth in the United Arab Emirates has been slowing as liquidity tightens because of low oil prices. Industry-wide lending growth slowed to an annual 7.0 % in September, the slowest pace since at least February 2014 when the current central bank data series began.

The ratings of rated Malaysian corporate sukuk, or Islamic bonds, reflect the credit quality of the underlying corporate backing the sukuk, despite the various assets in their sukuk structures, according to Moody's Investor Service.
In a statement today, the credit rating agency said that it had reiterated its conclusion in its analysis of three Malaysian corporate sukuk which it rated in 2015, namely Axiata Group Bhd (Baa2 stable), Telekom Malaysia Bhd (TM) (A3 positive), and Petroliam Nasional Bhd (Petronas) (A1 stable).

The revival of investor sentiment and interest in initial public offerings (IPOs) in the Gulf Cooperation Council countries experienced in 2014, slowed down in the first quarter (Q1) of 2015, slightly picking up pace in Q2 and further slowing down in Q3 of the year, according to PwC’s Capital Markets and Accounting Advisory Services team.
Regional IPO activity in Q3 is usually slower due to summer holidays, the holy month of Ramadan and Eid. This seasonal trend was perhaps exaggerated in Q3 as markets absorbed the impact of continued lower oil prices, growing geopolitical concerns and wider economic uncertainty, thus potentially impacting new issuers coming to market.

The revival of investor sentiment and interest in initial public offerings in the Gulf Cooperation Council countries experienced in 2014, slowed down in the first quarter of 2015, slightly picking up pace in the second and further slowing down in third quarter of the year, according to PwC's Capital Markets and Accounting Advisory Services team.
Regional IPO activity in Q3 is usually slower due to summer holidays, the holy month of Ramadan and Eid. This seasonal trend was perhaps exaggerated in Q3 as markets absorbed the impact of continued lower oil prices, growing geopolitical concerns and wider economic uncertainty, thus potentially impacting new issuers coming to market.

The Thomson Reuters Global Sukuk Index is at 118.24280 points, up from 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 116.64293 points against 113.69014 at end-2014.

“Ethical finance” is a term used to describe finance that is put to good social and environmental use. Interest in it has risen since the 2008 global financial crisis, with Islamic finance and socially responsible investment funds becoming its two fastest areas of growth. The World Bank Treasury has brought the two together by helping the International Finance Facility for Immunization issue two Sukuks in less than a year.
IFFIm is an international organization that finances child immunization and strengthens health systems related to it in some of the poorest countries of the world through Gavi, the Vaccine Alliance. Backed by nine sovereign governments—the United Kingdom, France, Italy, Norway, Australia, Spain, the Netherlands, Sweden, and South Africa—the organization raises money in the international capital markets.

Dubai’s Majid Al Futtaim this week became the first Gulf corporate to print a senior unsecured sukuk in 2015, as Middle Eastern issuers continue to dampen worries about liquidity drying up in the region - at least for Islamic bonds.

ax incentives under the 2016 Budget to promote Sustainable and Responsible Investment (SRI) Sukuk are timely as interest in these instruments are on the rise. The budget proposes that tax deduction be given for five years on issuance costs of SRI Sukuk. Maybank Islamic Bhd CEO Datuk Muzaffar Hisham noted that SRI Sukuk can also be the avenue for financial inclusion which has been strongly championed by the Islamic finance industry as a whole. RHB Islamic Bhd CEO and managing director Ibrahim Hassan said any project has to first be attractive to investors. The next stage will then be to choose the best funding option, and this is where the incentives for SRI Sukuk could make it a cost-effective option.

Bahar Alsharif, Deputy Treasurer of International Finance Corporation (IFC), a member of the World Bank Group, today rang the market-opening bell to celebrate the listing of a 100 million US dollar Sukuk on Nasdaq Dubai. More than a third of this total, amounting to 12.75 billion US dollars, has listed on Nasdaq Dubai in 2015. The Sukuk is the second to be listed by IFC on Nasdaq Dubai, following a 100 million US dollar Sukuk that listed in 2009. Through its latest Sukuk, IFC will support developmental financing activities in the Middle East and North Africa and other parts of the world.

Dubai-based retail and leisure developer Majid Al Futtaim has opened books for a benchmark U.S. dollar-denominated sukuk issue, which it expects to price as early as Tuesday. Initial price thoughts for the 10-year sukuk have been set in the area of 270 basis points over midswaps. The firm, which owns and operates the Carrefour franchise in the Middle East, has picked Abu Dhabi Islamic Bank, Dubai Islamic Bank, HSBC, National Bank Of Abu Dhabi and Standard Chartered to arrange the sukuk. The sukuk will use the wakala structure, in which one party acts as an agent managing assets for another.

The Thomson Reuters Global Sukuk Index is at 118.57859 points, up from 117.98384 at the end of last month and 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 117.13560 points against 116.82783 at end-September and 113.69014 at end-2014. Some of the sukuk in the pipeline are: Dubai-based retail and leisure developer Majid Al Futtaim has picked banks to arrange a potential U.S. dollar-denominated sukuk issue. Albaraka Turk has picked seven arrangers for a potential dollar-denominated sukuk issue to bolster its supplementary capital. The Tunisian government expects next year to launch a delayed sukuk issue for 1 billion dinars ($513 million).

Oman’s first issue of sovereign Islamic bonds has received strong orders ahead of its final pricing on Tuesday. The 200 million rial (Dh1.9 billion, $520 million), five-year sukuk issue with an ijara format drew 22 orders totalling 336 million rials during the subscription period, which ran from Oct. 8 to 22, Mohammed Hussain Jawad, adviser at the finance ministry and head of the committee handling the issue, said. Results of the sale and allocations will be announced on November 3. Jawad also said the ministry planned a second sukuk issue next year, but he did not elaborate on the size or timing.

The Islamic Development Bank's (IDB) ordinary capital resources has increased its use of sukuk instruments, not only boosting its lending capacity but also promoting the global Islamic financial markets, Moody's Investors Service said in its report "Islamic Development Bank - Ordinary Capital Resources". The IDB currently has a long-term issuer rating of Aaa with a stable outlook. Despite increased leverage from sukuk issuance, the IDB benefits from a large and expanding capital base. because of the recent general capital increase. The debt-to-equity ratio is expected to rise to 125% in the coming years, a level still well below that of other Aaa-rated MDBs.

Qatar Islamic Bank has opened order books for a five-year benchmark dollar-denominated sukuk issue, a document from lead arrangers showed on Tuesday. The initial price guidance for the offering has been set in the area of 145 basis points over midswaps, the document showed. The bank has mandated Barwa Bank, Citi, HSBC, Noor Bank, QInvest and Standard Chartered as joint lead managers for the issue. The sukuk issue will be under Qatar Islamic's existing $1.5 billion Trust Certificate Issuance Programme.

Saudi Arabia-based Arab Petroleum Investments Corp (APICORP) has tightened price guidance for its debut benchmark U.S. dollar-denominated sukuk issue, which could be priced as early as Monday. Guidance was revised to a range of 105 basis points plus/minus 5 bps over midswaps. Pricing was initially set in the area of 110 bps over midswaps earlier in the day. The sukuk will have a five-year tenor and be classified as a quasi-sovereign issue. The order book for the issue currently stands at $650 million. The wakala-structured sukuk is being arranged by Emirates NBD, First Gulf Bank, Goldman Sachs, NCB Capital, Noor Bank and Standard Chartered.

Turkish Islamic bank Albaraka Turk has reportedly picked seven arrangers for a potential dollar-denominated sukuk to bolster its supplementary or Tier 2 capital. The lender is expected to raise around $250 million, and the sukuk issue is planned before the end of the year. Albaraka Turk has chosen Barwa Bank, Dubai Islamic Bank, Emirates NBD, Nomura, Noor Bank, Standard Chartered and QInvest to arrange the sukuk issue. The bank, a unit of Bahrain-based Al Baraka Banking Group , didn't immediately respond to a request for comment.