IslamicFinance.de

Paramount Corporation Bhd (PCB) signed two private bond programmes worth RM550 million today with Hong Leong Investment Bank Bhd, OCBC Bank and RHB Investment Bank. The deals consist of RM200 million Private Debt Securities programme, which allows PCB to issue RM200 million perpetual bonds, and a RM350 million Sukuk Ijarah Programme for PCB's unit, KDU University College Sdn Bhd. Group Chief Executive Officer Chan Say Yeong said the perpetual bonds provide PCB with access to capital to fund its growth plans, while the Sukuk will finance the building of the new KDU UC campus at Ultrapolis in Glenmarie, Shah Alam.

Paramount Corporation will raise RM550 million via a RM200 million perpetual bond sale and a RM350 million sukuk programme, which was put together by Paramount in cooperation with Hong Leong Investment Bank, OCBC Al-Amin Bank and RHB Investment Bank. The money will be used for capital expenditure and working capital, to buy land as well as to fund a new campus. Paramount will become the first private company to issue perpetual bonds which will be issued to institutional investors.

Indonesia raised 1.5 trillion rupiah ($155.11 million) at its first sukuk auction of the year on Feb. 5. 6-month Shariah T-bills, as well as project-based 5- and 24-year sukuk were sold to finance the country's budget deficit. According to the Finance Ministry's debt office, the targeted amount was reached.

Islamic 'Sukuk' could be an alternative source of financing for constructing Padma Bridge. A day-long international conference on Islamic finance, titled 'Islamic Finance news Roadshow' held Tuesday in the city discussed on the issue. Moreover, key issues pertinent to the country's Islamic financial market and its challenges and opportunities were addressed. The growth potential for Bangladesh's Islamic finance industry is high, and coupled with a steadily growing economy and financial reforms.

Paramount Corporation Bhd (PCB) agreed two private bond programmes worth RM550 million with Hong Leong Investment Bank Bhd, OCBC Bank and RHB Investment Bank. The deals consist of RM200 million private debt securities programme, which allows PCB to issue RM200 million perpetual bonds, and a RM350 million Sukuk Ijarah Programme for PCB’s unit, KDU University College Sdn Bhd (KDU UC). According to group CEO Chan Say Yeong, the fund arising from the bonds would be used for PCB’s future expenditure, increase landbank for development, investment in the education business and for working capital purposes.

SGI-Mitabu, a venture between The Solar Guys International and Mitabu Australia will finance its entire Indonesian solar power project using sharia-compliant financing. The first 50 megawatt (MW) of the 250 MW solar power project will be financed through the issuance of a seven-year A$100 million ($104 million) sukuk in Labuan, Malaysia's offshore financial centre. This will be followed by two more tranches which will be structured as either sukuk or Islamic syndicated loans.

The Paramount Corporation, a wholly-owned subsidiary of KDU University College, plans to issue Islamic medium-term notes (sukuk ijarah) of up to RM350 million in nominal value. Hong Leong Investment Bank, OCBC Al-Amin Bank and RHB Investment Bank are the joint principal advisers, arrangers and lead managers for the sukuk programme. The Securities Commission Malaysia had approved the issuance of the proposed sukuk programme via a letter on January 31.

Dubai aims to become a top global centre for Islamic bonds by introducing more detailed standards about issuance and trading. The emirate hopes the new standards will reduce disputes between scholars, issuers and investors over what types of debt structures are permissible and attract more business to its market. Last month, Dubai Financial Market (DFB) published a draft of its proposals, which the industry can comment. DFB plans to issue the final version of the standards in March.

Jordan Islamic Bank (JIB) and Ministry of Religious Endowments / Hajj fund have signed the agreement of issuance Hajj Sukuk for citizens who are interested in participating in the fund through Jordan Islamic Bank. Citizens can subscribe in Hajj Sukuk as a tool for saving and investment that complies with Sharia principles. Underwriting can be done through all JIB's branches and offices.

Islamic bonds trailed emerging-market debt for a second year, a trend that is expected to continue this year. Compared with a 18.5 per cent yield for developing-nation securities, Global Sharia-compliant notes gained 9.6 per cent last year.
Falling yields have helped to push worldwide sales of debt that comply with Islam's ban on interest, and sales may increase this year as new countries including Oman, Tunisia and Egypt tap the Sharia-compliant capital market for the first time.

TH Heavy Engineering plans to issue non-rated sukuk under the Sukuk Murabahah programme with MIDF Amanah Investment as the principal adviser. The Sukuk Murabahah is unrated, non-transferable and non-tradable. The Securities Commission (SC) reportedly authorised the proposed programme. The tenure of the Sukuk Murabahah programme is up to six years from the date of the first issuance, which will be made within one year from the date of the SC’s authorisation.

Tamweel today announced that it had repaid in full a $300 million five-year Sukuk, which was issued in early 2008 and matured in January 2013. The proceeds were used for general Islamic financing and corporate purposes. The timely repayment of the Sukuk demonstrates the financial strength of Tamweel and its majority shareholder Dubai Islamic Bank (DIB).

The Egyptian Finance Ministry will start its Sukuk issuance project in the last quarter of the current fiscal year. The project for financing economic and social projects will help to curb budget deficit. For Sukuk issuance, a central Sharia panel of seven members will be formed. The premier will be responsible for the appointment of the panel members.

After advising Goldman Sachs on a controversial 2$ billion sukkuk programme, Dar Al Istithmar has closed down.
Sources say that most of the staff moved to Khalij Islamic, with offices in London and Dubai. Clients have moved to Khalij Islamic as well.

In order to finance its budget deficit, Indonesia will hold a sukuk auction on February 5. The country aims to raise 1.5 trillion rupiah (RM477 million). According to the plans, 6-month sharia T-bills and project-based sukuk maturing in 5-, 9-, 14- and 24-year will be sold at the auction.

Nakheel may look to refinance its sukuk borrowings this year due to a reported growing of its 2012 profits. However, an analyst warned of wrong rating and pricing.

Ali Rashid Lootah, the chairman of Dubai government-owned developer Nakheel, assured that his company is in a good financial position and has about $600 million of cash on its balance sheet. The comments followed a recent report from analysts at boutique investment bank Exotix that estimated Nakheel may have difficulties repaying a $1.1 billion Islamic bond and about $2 billion of bank debt due in 2016 with its own resources. Nakheel issued the Islamic bond, or sukuk, as part of its restructuring settlement. According to Mr. Lootah further sukuk shares will be issued.

The Egyptian cabinet last week approved a draft law that would allow the government to issue Islamic bonds. The bill divides government assets into “publicly owned by the state" and "privately owned by the state". Only the first type of asset is allowed for sukuk. However, the bill does not describe the two types, a fact that is already causing controversy. The bill is still to be reviewed by the upper house of parliament and religious scholars at the Al-Azhar university.

Website of the Egyptian Regulator presenting the draft regulation for Sukuk:

"As EFSA is keer on engaging all the market’s parties and professional associations participate in the process of making rules related to new financial tools in different non –banking activities and markets ,

And following the principle of "consultation to reach the best results " this page shall include the draft laws and regulatory decisions , and EFSA receive all the participants comments through a form that has been prepared by EFSA for this matter"

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Gatehouse Bank has issued its first real estate-backed Sukuk that comprises shares in a company which owns a property leased to Fujitsu Services Limited. Rental payments will be applied to fund payments to the Sukuk holders and investors have the option to redeem their investment on a quarterly basis. Therefore, this asset constitutes a short term cash instrument with an annual yield of three per cent.