GLOBAL: The market saw a
spate of Sukuk issuance this week including from the largest bank in Saudi
Arabia – National Commercial Bank – as well as Riyad Bank and Maxis
Communications among others; and the Islamic bond pipeline is looking
robust with several new offerings announced including Kuveyt Turk’s TRY200
million (US$74.76 million) facility which bookrunner Halk Invest confirms
with IFN will be issued through public offerings.
Sukuk aside, there were also landmark financing deals concluded this week
including the largest Shariah compliant aviation Ijarah transaction for
Saudi’s national carrier involving 50 Airbus aircraft. The Islamic
Corporation for the Development of the Private Sector on the 22nd
June secured its biggest financing to date – a US$300 million Murabahah
facility, part of its US$1.2 billion 2015 global resource mobilization
program. What is also significant about this transaction is that
Japan-based Mizuho Bank’s Malaysian and Dutch units were among the deal’s
lead arrangers, reflecting the increasingly active participation by
Japanese entities in Islamic finance evident also by the impending Sukuk
sale by both Toyota Capital and AEON Credit announced earlier. The
heightened Japanese involvement follows the passing of Islamic finance
reforms in Japan – an encouraging sign and much-needed impetus for the
country to begin adopting Islamic instrumen ts.
It is hoped that the Japanese experience would also be replicated in
Uganda, which this week committed itself to Islamic banking by approving amendments
to its Financial Institutions Act allowing for Shariah banking transactions
to take place in the domestic markets. According to local media, the bill
will be presented to parliament for debate and enactment.
In the Takaful segment: while Oman’s Al Madina Takaful is looking towards
expanding its operations by acquiring Vision Insurance Company in its
entirety, Malaysia’s MAA Group is on the other hand considering disposing
its holding in MAA Takaful, a joint venture with Bahrain-based Solidarity Company.
The Malaysian central bank has allowed the group to commence negotiations
for the proposed disposal which could see MAA Group offloading its entire
75% interest.
It has also been confirmed that veteran banker Hassan Ameen Jarrar,
previously CEO of Standard Chartered Bahrain, will be taking over the reins
of Bahrain Islamic Bank as CEO beginning the 1st July.
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