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Monday, 2 February 2015

SUKUK PIPELINE - Issue plans around the world

Following are major Islamic bond issues in the global pipeline.
The Thomson Reuters Global Sukuk Index is at 117.48601 points, up from 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 115.34912 against 113.69014 at end-2014.
IVORY COAST - Ivory Coast plans to make a debut 200 billion CFA franc ($340 million) sukuk issue in 2015, the region's development planning agency UMOA-Titres said in January.
EGYPT - Egypt is exploring the idea of issuing international sukuk, but that would require regulatory change, Hanan Salem, first deputy minister for economic and financial policies at the Finance Ministry, said in January.
QATAR ISLAMIC BANK - Qatar Islamic Bank plans to raise up to 2 billion riyals ($549 million) through a capital-boosting sukuk issue, the bank said in mid-January.
PUTRAJAYA HOLDINGS - Malaysia's Putrajaya Holdings Sdn Bhd has proposed issuing 370 million ringgit ($103 million) of 15-year sukuk musharaka, Malaysian Rating Corp said in mid-January.
BANK ISLAMI - Bank Islami Pakistan, the country's second largest full-fledged Islamic bank, plans to raise 3.5 billion rupees ($34.8 million) via subordinated sukuk, a bank official said. Issuance of the first 500 million rupee tranche, which still requires regulatory approval, could be as early as this quarter.
MOBILINK - Pakistan Mobile Communications (Mobilink), the country's largest telecommunications operator, plans to raise 6.9 billion rupees via sukuk this quarter, Pakistan Credit Rating Agency said.
BANGLADESH CENTRAL BANK - At the start of January Bangladesh's central bank launched a weekly sukuk issuance programme; it introduced three-month paper, having previously only sold six-month sukuk, and will now hold auctions every Thursday.
INTERNATIONAL BANK OF AZERBAIJAN - International Bank of Azerbaijan, the country's largest and the only state-owned bank, plans to issue $200-300 million of debut sukuk this year, a senior manager said in early January.
TUNISIA - Tunisia will delay its planned debut issue of $500 million in Islamic bonds until the third quarter of the year to allow parliament time to amend a law concerning the sale, Finance Minister Hakim Ben Hamouda said in early January.
BAHRAIN - In early January Bahrain launched direct sales of local currency government sukuk and bonds through its securities exchange, to broaden the investor base for its debt as sliding oil prices put state finances under pressure. The bourse set a minimum subscription of 500 dinars ($1,326).
NINGXIA - China's AVIC Capital Co said in late December that its unit AVIC Securities had signed an agreement to advise the government of the country's Ningxia Hui Autonomous Region on the global issue of up to $1.5 billion worth of instruments such as sukuk and U.S. dollar bonds, with maturities up to five years.
INDONESIA - The government plans to issue 7.14 trillion rupiah of project-based sukuk in 2015 to finance three infrastructure programmes and develop the sukuk market, the Jakarta Post quoted Suminto, director of Islamic bonds at the debt management office, as saying in mid-December.
The finance ministry plans to sell retail sukuk worth around 20 trillion rupiah in April, an official at the debt management office said in early December.
The government plans to issue global sukuk in the first quarter of 2015 before the U.S. Federal Reserve starts increasing interest rates, Scenaider Siahaan, a director at the debt management office, told Reuters; he did not give details.
AXIS REIT - Malaysia's Axis REIT said in mid-December that it planned to expand its sukuk programme to 3.0 billion ringgit from its existing size of 300 million ringgit, and extend the programme to a perpetual programme from 15 years.
TURKIYE FINANS - Turkish Islamic lender Turkiye Finans Katilim Bankasi applied to issue 143 million lira ($60.5 million) via sukuk, the Capital Markets Board said in mid-December.
TIRSAN TREYLER - Turkiye Finans received regulatory approval for a 71 million lira sukuk issue by trailer manufacturer Tirsan Treyler Sanayi ve Ticaret, the Capital Markets Board said in mid-December.
1MDB - Malaysia's sovereign wealth fund, 1Malaysia Development Bhd , has postponed the sale of up to 8.4 billion ringgit of sukuk to 2015, two people familiar with the matter said in early December.
GULF FINANCE HOUSE - Bahrain's Gulf Finance House is in talks on buying two asset management firms for a total of up to $500 million and is planning to increase debt to finance the deals, chief executive Hisham al-Rayes told Reuters in early December. He said GFH would have a preference for using sukuk over syndicated loans.
UNITAPAH - Malaysia's UniTapah Sdn Bhd plans to issue up sukuk murabaha of up to 600 million ringgit to refinance a term loan funding construction of the new campus for Universiti Teknologi MARA in Perak, RAM Ratings said in early December.
KENYA - Kenya will issue its debut sukuk in the next financial year to June 2016, not this one as some had expected, its finance minister said at the start of December.
CAGAMAS - Malaysia's state-backed mortgage lender Cagamas will raise up to $2.5 billion with a multi-currency Islamic bond programme, credit agency RAM Ratings said at the start of December.
TURKEY - The Turkish Treasury said in late November it would issue sukuk worth 1.5 billion lira by end-February.
ICD - The Islamic Corporation for the Development of the Private Sector, the private sector arm of the Jeddah-based Islamic Development Bank, plans to tap Islamic capital markets to raise as much as $1.2 billion in long-term funds during its current financial year, which started in October, its chief executive told Reuters in late November.
POINT ZONE - Malaysia's Point Zone (M) Sdn Bhd, a subsidiary of KPJ Healthcare, received in early November authorisation from the Securities Commission to establish a sukuk programme of up to 1.5 billion ringgit.
MALAYSIA BUILDING SOCIETY - Malaysia Building Society Berhad is planning a second issuance of its structured covered sukuk commodity murabaha programme, aiming to raise up to 700 million ringgit, bankers said in mid-November.
KUVEYT TURK - Turkish Islamic bank Kuveyt Turk mandated CIMB Investment Bank, Kuwait Finance House and Maybank Investment Bank to issue up to 2 billion ringgit of sukuk in Malaysia, bankers said in mid-November.
FLEETCORP - Turkey's Fleetcorp, wholly owned by Kuwait's The International Investor, has received regulatory approval to raise up to 150 million lira via sukuk, the Capital Markets Board said in early November.
BANK MUSCAT - The Islamic unit of Bank Muscat, Oman's largest lender, plans to tap the sukuk market in the first quarter of next year, in what would be the first sukuk sale by a bank in the country, a bank official said in late October. The issue would fall under a 500 million rial ($1.3 billion) sukuk programme which shareholders approved in March this year.
TEMASEK EKSLUSIF - Temasek Ekslusif, a wholly owned unit of Malaysian property developer Gamuda Bhd, will raise up to 1 billion ringgit with Islamic bonds, ratings agency RAM Ratings said late in October.
OMAN - Oman's government will make its first issue of rial-denominated sukuk for the domestic market as soon as in the first quarter of 2015; the issue may be worth the equivalent of around $300 million or $400 million, with maturities of five or seven years, financial affairs minister Darwish al-Balushi told Reuters in late October.
KAZAKHSTAN - Kazakhstan may make its second international issue of sukuk in 2015, central bank governor Kairat Kelimbetov told Reuters in late October. The issue would probably be quasi-sovereign but plans have not been finalised yet; details are likely to be decided near the end of this year.
LUXEMBOURG - Luxembourg is open to the idea of making more sovereign sukuk issues after conducting its first such issue at the end of September, Luxembourg finance minister Pierre Gramegna told Reuters in late October.
ETISALAT - Abu Dhabi-based telecommunications firm Etisalat is planning its first sukuk issue, bankers told IFR in early October. The company will have the documents ready in coming weeks, but the deal is more likely to be launched in early 2015, they said.
BANK ISLAM - Malaysia's Bank Islam, wholly owned by BIMB Holdings, has set up a 1 billion ringgit subordinated sukuk programme to boost its regulatory capital, RAM Ratings said in early October.
BINTULU PORT - Malaysia's Bintulu Port Holdings is expected to prepare for its planned Samalaju Port project with a proposed sukuk issue, likely to be 700-800 million ringgit, The Edge daily reported in early October.
MALAYSIA MARINE - Malaysia Marine and Heavy Engineering said in late September it had received approval from the Securities Commission to establish a sukuk murabaha programme of up to 1 billion ringgit.
MAHCO MALAYSIA - Mahco Malaysia, a vehicle to issue sukuk for Mohammed Othman Al Houkail Trading & Contracting Co, a medium-sized contractor in Saudi Arabia, proposed an Islamic medium-term note programme of up to 300 million ringgit, RAM Ratings said in late September.
CENDANA SEJATI - Malaysia's Cendana Sejati, a unit of local bank Masraf Al Barakah, proposed a 360 million ringgit senior sukuk murabaha medium-term note programme, RAM Ratings said in late September.
AGAOGLU - Turkish construction-to-energy Agaoglu Group plans to raise around $300 million by issuing sukuk, Niyazi Albay, Agaoglu's chief investment officer, told Reuters in mid-September. No specific time frame was given.
AKTIF BANK - Aktif Bank, Turkey's largest privately owned investment bank, has received regulatory approval to issue 200 million lira in sukuk, the Capital Markets Board said.
DOGUS GROUP - Turkish conglomerate Dogus Group has received regulatory approval to raise $370 million by issuing the country's first U.S. dollar-denominated corporate sukuk, the Capital Markets Board said in late August. No time frame was given.
CIMB ISLAMIC - CIMB Islamic, the sharia-compliant unit of Malaysia's second largest bank, is preparing an Islamic bond programme to raise up to 5 billion ringgit, ratings agency MARC said in late August.
SUNWAY - Malaysian property developer Sunway will raise up to 2 billion ringgit by issuing sukuk mudaraba, it said in August; short-term commercial paper under the programme will have maturities of between a month and a year, while medium-term notes will have maturities of one to seven years. Sunway will make its first issuance within two years.
SOCIETE GENERALE - Societe Generale completed the roadshow for the first issue in its 1 billion ringgit multi-currency sukuk programme in Malaysia, and would decide on the size in days, the bank said on June 18. In early July, banking sources said Societe Generale was still seeking a window to launch.
IFC - The International Finance Corp, the World Bank's lender to the private sector, is considering a return to the Islamic bond market, an IFC official said. A sukuk issue was still in the early stages of discussion but would likely be in the fiscal year starting in July 2014.
JORDAN - Jordan's government is studying a proposal to issue its first Islamic bond as early as in 2015, possibly raising over $1 billion in multiple currencies, but a preference for concessionary loans from aid donor countries could hinder the plan, government sources said.
(Yahoo.News / 01 Febuary 2015)
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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

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