Turkiye Finans taps into the Malaysian debt capital market with landmark Sukuk program

55 days to go Tuesday 22nd July 2014 Turkiye Finans taps into the Malaysian debt capital market with landmark Sukuk program Daily Cover GLOBAL: Following an announcement made last month, Turkish participation bank Türkiye Finans Katilim Bankasi has successfully auctioned the first tranche of its RM3 billion (US$945.02 million) Sukuk program in the Malaysian debt capital market. Raising RM800 million (US$252 million), the bank’s landmark issuance marks the first Malaysian ringgit Sukuk program to be established by a Turkish issuer and the first issuance by a Turkish issuer of Malaysian ringgit-denominated Sukuk in the Malaysian debt capital market to date. Carrying a tenor of five years, the Sukuk is issued by TF Varlik Kiralama, Turkiye Finans’ wholly-owned asset leasing company. Proceeds therefrom will be used by Turkiye Finans primarily for general corporate and funding purposes and working capital requirements that are Shariah compliant. The Sukuk was structured based on the Murabahah principle (via a Tawarruq arrangement) and was engineered by HSBC Amanah Malaysia and Standard Chartered Saadiq as the joint principal advisers, joint lead arrangers, joint lead managers and joint Shariah advisers of the Sukuk program. “We are honored to lead the inaugural Malaysian ringgit Sukuk issuance by Turkiye Finans which claims many significant achievements such as the first ringgit-denominated Sukuk issue by a foreign fully-fledged Shariah compliant bank, the first Malaysian ringgit Sukuk issue from a Turkish issuer and the largest senior single tranche issuance by a foreign issuer in the MYR market to date. Following this debut issuance, we hope to see more cross-border Sukuk issuances by Turkish issuers in Malaysia giving the Malaysian investor community an opportunity to diversify their investments,” expounded Wasim Akhtar Saifi, CEO of Standard Chartered Saadiq. Echoing similar sentiments, Rafe Haneef, CEO of HSBC Amanah Malaysia, pointed out: “This milestone follows the successful debut issuance from the Kingdom of Saudi Arabia last year and the Republic of Kazakhstan in 2012. As the largest senior single tranche issuance by any foreign financial institution and the largest issuance from the European and Middle East region in the Malaysian debt market to date, this issuance further enhances Malaysia’s position as a global Islamic finance hub and is testament to Malaysia’s mature Sukuk market and legal framework.” Turkiye Finans and the Sukuk program has been assigned ‘AA3(s)/P1’ and ‘AA3(s)’ by RAM, respectively; reflecting the bank’s credit strength as it is the obligor of the Sukuk program. Turkiye Finans is mainly involved in financing SMEs and corporates, and is majority-owned by National Commercial Bank, Saudi Arabia’s first and largest bank which is in turn majority-owned by the government of Saudi Arabia. Today’s IFN Alerts KUWAIT: Commercial Bank of Kuwait's upcoming Basel III-compliant conventional bond may put a dent on its plan to convert into an Islamic bank BAHRAIN: Central Bank of Bahrain's monthly Sukuk Salam issue oversubscribed by 306% MALAYSIA: Merger for Islamic megabank will not go ahead if there are unfavorable risks, says CIMB Group head MALAYSIA: Highway concessionaire LEKAS seeks junior Sukukholders' approval to amend provisions in project documents pursuant to letter from government PAKISTAN: Interest-free micro loans provider Akhuwat makes foray into Shariah compliant agricultural financing space with Mudarabah company UAE: Islamic finance being held back by lack of effective liquidity management and Shariah compliance standardization, according to industry player GLOBAL: Islamic funds manage US$75.1 billion globally in the first half, according to report SAUDI ARABIA: Saudi Arabia leads GCC IPO tally for the first half of 2014 UAE: Abu Dhabi Islamic Bank promotes smart money management with personal finance payment holiday for Ramadan SAUDI ARABIA: Al-Ahlia Insurance Company reports net loss of SAR466,000 (US$124,232) SAUDI ARABIA: Al Ahli Takaful Company announces 309.2% leap in second quarter net profit SAUDI ARABIA: Allied Cooperative Group reports SAR2.88 million (US$767,785) in net profit for the second quarter, a gain of 89.11% SAUDI ARABIA: Dar Al Arkan Real Estate Development Company sees six month net profit of SAR369.2 million (US$98.42 million) KUWAIT: Kuwait Finance House announces 6.4% increase in net profits for the second quarter of the year UAE: Emirates REIT signs new corporate Ijarah facility worth US$29.13 million with Emirates Islamic Bank SAUDI ARABIA: Saudi Arabian Cooperative Insurance Company continues profit growth with 43.11% quarter-on-quarter increase SAUDI ARABIA: Saudi banks see 11.1% rise in accumulated profit for the second quarter, reaching SAR11.1 billion (US$2.95 billion) BAHRAIN: BBK concludes second quarter with 8.6% growth in net profit UAE: Sharjah Islamic Bank realizes 50% jump in second quarter net profit QATAR: Ten percent growth in half yearly net profit for Qatar International Islamic Bank ZAMBIA: Phoenix of Zambia Assurance Company to launch Takaful product next month SAUDI ARABIA: Tadawul suspends trading of Arabia Insurance Cooperative Company as the operator suffers 73.64% in losses against its capital MALAYSIA: Takaful Malaysia targets RM20 million (US$6.3 million) 2015 profit boosted by new SME product to be launched in December SAUDI ARABIA: Saudi stock exchange suspends shares of Saudi Indian Company for Cooperative Insurance Company MALAYSIA: CIMB Group Holdings receives ratings advice from Moody's and MARC following announcement of proposed merger with RHB Capital and Malaysia Building Society OMAN: Fitch affirms ratings for five banks in Oman MALAYSIA: MARC withdraws 'AAIS' rating on Alloy Properties' RM240 million (US$75.6 million) Sukuk Musharakah program following early redemption and cancellation KOREA: RAM maintains 'AAA' rating on Industrial Bank of Korea's conventional and/or Islamic medium-term notes program Latest Roundtables June 2014 May 2014 Dubai Islamic Economic Roundtable Series 2014-2 Dubai Islamic Economic Roundtable Series 2014-1 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 Africa Forum 2014 4th November 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 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 © Copyright policy: No part of IslamicFinancenews.com may be reproduced in any form by any means, electronic or mechanical (including photocopying, recording or information storage and retrieval) without permission in writing from the publisher. 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