Pakistani government to auction Sukuk worth US$427.26 million early May

	28 days to go
Monday 28th April 2014
Pakistani government to auction Sukuk worth US$427.26 million early May Daily Cover PAKISTAN: The Pakistani federal government is reportedly planning to launch a Sukuk program of between PKR42-45 billion (US$427.26-457.79 million) in the first week of May. Backed by the M3 motorway, the issuance is aimed at meeting the country’s escalating financial needs while providing investment opportunities to the Islamic banking industry, according to a local daily. The M3 route is a 53km-highway linking Pindi Bhattian to Faisalabad and is expected to become an important motorway connecting southern Pakistan with the north. Islamic financial institutions in Pakistan are currently searching for Shariah compliant products and investment avenues in fear of surplus liquidity. Currently, Islamic banking institutions in the country are said to have approximately PKR150 billion (US$1.52 billion) in surplus liquidity and are facing difficulties in stabilizing their profitability due to limited investment opportunities. The three-year Sukuk Ijarah is expected to afford the Islamic industry an opportunity for placement of its excess liquidity. Industry observers have indicated that the Islamic banking sector in Pakistan witnessed a decline in investments from PKR445 billion (US$4.52 billion) at the end of September 2013 to PKR394 billion (US$4 billion) at the end of December the same year. It was suggested that the drop was mainly attributed to the non-issuance of the government’s Sukuk Ijarah which was expected within the last three quarters of 2013; as it has been generally the preferred investment option for the Islamic banking sector. The government was unable to make its issuance reportedly due to technical reasons and should this issuance materialize, it will be the country’s first Sukuk deal this year. According to Ashraf Wathra, State Bank of Pakistan’s governor, the Islamic banking industry will be able to capture a 20% market share by 2020. Wathra also said that the industry has registered an annual growth rate of at least 30% over the last five years and its market share has exceeded 10% with a network of over 1,300 branches in 87 districts nationwide. Today’s IFN Alerts GLOBAL: Sudanese Egyptian Bank to be bought by the Islamic Solidarity Bank of Sudan for US$22 million SAUDI ARABIA: Al Rajhi arranges five-year US$266.59 million Murabahah facility for Arab Petroleum Investments Corporation UAE: Securities and Commodities Authority of the UAE reduces minimum Sukuk size eligible for listing to US$2.72 million in a bid to encourage trading UAE: Al Hilal Bank expands Shariah compliant fund offerings with newly-launched Global Balanced Fund which invests in global equities and Sukuk MALAYSIA: Special Power Vehicle’s Class A Islamic medium-term notes due and payable on the 19th May MALAYSIA: Sentral 384 semi-annual payment to shareholders due on its US$61.55 million Sukuk GLOBAL: Murabahah in stocks among topics discussed during inaugural meeting between Bahrain Bourse and Tadawul UAE: UAE Islamic banks will double market share by 2020 according to Emirates Islamic Bank BANGLADESH: Bangladeshi central bank to launch Shariah refinancing scheme for SMEs UAE: Industry sources believe Mubadala to be the financier of Etisalat’s US$5.81 billion purchase in Maroc Telecom KYRGYZSTAN: Kyrgyz Republic signs agreement to develop draft regulations for the introduction and development of Islamic securities and Takaful EGYPT: Arab Orient Takaful Company shareholders agree to increase company’s capital to US$10.96 million UK: Lloyds Bank accused of discrimination over the absence of overdraft charges for its Islamic accounts GLOBAL: Money laundering and financial crime a worry for Middle Eastern banks, according to report EGYPT: Rebrand sees Al-Watany Bank of Egypt become NBK-Egypt UGANDA: Uganda engages the IDB and Islamic Chamber of Commerce and Agriculture to amend legislation to allow Islamic finance KUWAIT: Al Madina for Finance & Investment aiming to strengthen financial position in deal with creditors NIGERIA: IDB partners with Kaduna State government to further infrastructure development AZERBAIJAN: Kovsarbank resumes banking activities after three-year suspension UAE: Dubai Investments approves raising foreign ownership cap to 35% in light of impending MSCI upgrade UAE: Ajman Bank provides customers with trading services via alliance with Al Ramz Capital SAUDI ARABIA: Industry participants expects robust IPO pipeline for Saudi Arabia this year QATAR: Shares distributed to Doha Insurance Company shareholders following capital increase MALAYSIA: Moody’s affirms ratings for Standard Chartered Bank Malaysia Latest Supplements March 2014 March 2014 Deals of the Year Handbook   Nigeria   Events IFN Asia Forum 2014 26th- 27th May 2014 by REDmoney events IFN Iran Forum 2014 10th June 2014 by REDmoney events IFN Europe Forum 2014 26th June 2014 by REDmoney events IFN Global Forum 2014 15th - 16th September 2014 by REDmoney events IFN Kuwait Forum 2014 29th September 2014 by REDmoney events IFN Sri Lanka Forum 2014 13th October 2014 by REDmoney events IFN Bangladesh Forum 2014 20th October 2014 by REDmoney events IFN Africa Forum 2014 4th October 2014 by REDmoney events IFN Turkey Forum 2014 6th November 2014 by REDmoney events IFN Saudi Arabia Forum 2014 17th November 2014 by REDmoney events IFN Egypt Forum 2014 1st December 2014 by REDmoney events Training Advanced Sukuk & Islamic Securitization 4th - 6th May 2014 (Riyadh) by Islamic Finance training Risk Management Framework and Principles for Islamic Finance 8th - 9th May 2014 (Kuala Lumpur) by Islamic Finance training Risk Management Framework and Principles for Islamic Finance 8th - 9th May 2014 (Kuala Lumpur) by Islamic Finance training Shariah Audit & Compliance for Islamic Banking 20th - 22nd May 2014 (Dubai) by Islamic Finance training Impact of IFSA on the Islamic banking industry in Malaysia 28th May 2014 (Kuala Lumpur) by Islamic Finance training Shariah Audit & Compliance for Takaful Products 12th - 13th June 2014 (Kuala Lumpur) by Islamic Finance training Latest Issues in Shariah Screening Methodology 16th June 2014 (Kuala Lumpur) by Islamic Finance training Latest Developments in Sukuk Structuring 17th June 2014 (Kuala Lumpur) by Islamic Finance training Structuring Islamic Legal Documentation 23rd - 25th June 2014 (Abu Dhabi) by Islamic Finance training Islamic Finance Qualification 23rd - 25th June 2014 (Kuala Lumpur) by Islamic Finance training Risk Management and Capital Adequacy for Islamic Banks 26th June 2014 (Kuala Lumpur) by Islamic Finance training Advanced Sukuk & Islamic Securitization 19th - 21st August 2014 (Istanbul) by Islamic Finance training Structuring Islamic Retail Banking Products 25th - 27th August 2014 (Muscat) by Islamic Finance training Structuring Corporate Banking Solutions 8th - 10th September 2014 (Dubai) by Islamic Finance training Islamic Treasury and Risk Management Products 22nd - 24th September 2014 (Kuala Lumpur) by Islamic Finance training Islamic Fund and Asset Management 25th - 26th September 2014 (Kuala Lumpur) by Islamic Finance training Advanced Sukuk & Islamic Securitization 10th - 12th November 2014 (Kuala Lumpur) by Islamic Finance training Advanced Sukuk & Islamic Securitization 8th - 10th December 2014 (Dubai) by Islamic Finance training