IDB to list US$10 billion Sukuk program on the Istanbul Stock Exchange

Monday, 10th November 2014 S&P 500 Shariah Dow Jones Islamic World MSCI World Islamic FTSE Shariah All World Russell - IdealRatings Islamic Global 1,787.91 2,872.78 1,167.33 2,047.40 1,840.21 ▲ 0.39 ( 0.02%) ▲ 5.75 ( 0.20%) ▲ (0.10%) ▲ 6.88 ( 0.34%) ▲ 6.26 ( 0.34%) IDB to list US$10 billion Sukuk program on the Istanbul Stock Exchange Daily Cover TURKEY: The IDB will be listing Sukuk of US$10 billion on the Istanbul Stock Exchange, according to İbrahim Turhan, the bourse’s chairman, speaking at a recent business association event. The announcement was made as Turhan noted the increase in the number of Sukuk and bonds being offered on the public market by private companies, and highlighted the significance of the move by the IDB for the developing Islamic finance industry, designated participatory finance, in Turkey. "[The IDB] is an investment and development bank and has a credit note of 'AAA' and our deal with them has been approved by the Capital Market Board. These non-interest bearing notes will be bought and sold at the Istanbul Stock Exchange Market. This is such an important step for our country," said Turhan. The IDB could not be reached for confirmation at the time of publication. Turkey’s participation banking sector currently holds a market share of 3.7% and boasts an average annual growth of 30% over the past decade. More recently however, the industry has indicated a desire to develop the Islamic capital markets in Turkey. Speakers at the recent IFN Turkey Forum cited the importance of broadening and strengthening the Islamic spectrum away from the dominance of retail banking, which currently accounts for 83% of banking assets. “One of the areas in which we can now expect significant further growth is the Islamic capital markets,” confirmed Murat Cetinkaya, the deputy governor of the Central Bank of Turkey, in his keynote speech. Turkiye Finans CEO Derya Gurerk confirmed that the bank already has two corporate Sukuk in the process of approval and several more in the pipeline worth hundreds of millions of dollars, as the Turkish private sector opens to a wider investor base. The IDB currently lists Sukuk on the London Stock Exchange, Bursa Malaysia and NASDAQ Dubai, with the listing of six issuances worth US$5.4 million on the latter exchange under a US$10 billion Sukuk issuance program. UAE: An IFN Correspondent Report Regulatory enhancements push UAE industry forward In the past month, a number of achievements have been announced on a regional and global level with regards to the Islamic finance industry. The nature of the progress we are witnessing in this sector, especially in the MENA region, is remarkable as governments and regulators start to actively work on enhancing the regulatory and legal framework for the Islamic finance sector. IFN Weekly Poll Four non-Muslim sovereigns from three different continents came to market in 2014. With Mexico, amongst others, now considering sovereign Sukuk, which continent will see the most issuances in 2015? As the year comes to a close and with issuers rushing to auction their Sukuk before the year-end, IFN jumps on the opportunity to gauge industry sentiments on their estimations of the Sukuk market in the upcoming year. NABILAH ANNUAR reports. This week's question: With Germany's GIZ exploring opportunities in Islamic microfinance, will we see this particular sector flourish in 2015? Today's IFN Alerts UAE: Limitless likely to pledge future revenues to restructure US$1.2 billion Islamic debt by December, according to report PAKISTAN: Pakistani finance minister expects benchmark Sukuk to be launched in the next three weeks GAMBIA: Sukuk Salam accounting larger portion of Gambia's domestic debt and seeing increasing yields amid escalating national debt, sustainability concerns raised GLOBAL: Songbird Estates rejects Canary Wharf takeover bid by Qatar Investment Authority KUWAIT: Burgan Bank plans rights issue for the 16th November, issuing 216 million new shares at KWD0.48 (US$1.64) apiece GLOBAL: Maybank expresses keen interest in establishing Islamic banking operations in Brunei UAE: UAE law passed in 1985 calling for appointment of higher authority for Shariah compliance enforcement has yet to be enacted, according to report MOROCCO: Dentons opens permanent base in Casablanca GLOBAL: Aabar Investments to wait for accident report before deciding on future funding for Virgin Galactic OMAN: Alizz Islamic Bank launches new branch in Nizwa, eyes another two branches before the end of 2014 UAE: Abu Dhabi Islamic Bank donates new mosque located in Fujairah SRI LANKA: Amana Takaful inaugurates new branch in Muthur UAE: S&P assigns 'A/A-1' ratings to emirate of Sharjah QATAR: Qatar Islamic Insurance Co selects Muhammad Ashraf Ali Siddiqui to head newly established risk management department BAHRAIN: Tadhamon Capital reveals key management appointments including new CEO SAUDI ARABIA: Sheikh Mohamed Ali Elgari to deliver keynote address at IFN Saudi Arabia Forum 2014 in November IFN Saudi Arabia Forum 2014 17th November 2014 (Riyadh) IFN Africa & Egypt Forum 2014 8th December 2014 (Cairo) IFN Awards Dubai Ceremony 2nd March 2015 (Dubai) IFN Awards Kuala Lumpur Ceremony 9th March 2015 (Kuala Lumpur) IFN Student Forum 2015 18th March 2015 (Kuala Lumpur) IFN Qatar Forum 2015 25th March 2015 (Doha) IFN Investor Forum 2015 1st April 2015 (Dubai) IFN US Investor Forum 2015 2nd April 2015 (Dubai) IFN Indonesia Forum 2015 22nd April 2015 (Jakarta) IFN Asia Forum 2015 25th-26th May 2015 (Kuala Lumpur) IFN Europe Forum 2015 10th June 2015 (Luxembourg) IFN Issuers Forum 2015 13th September 2015 (Dubai) IFN Kuwait Forum 2015 5th October 2015 (Kuwait City) IFN Africa Forum 2015 27th October 2015 (Cairo) IFN Turkey Forum 2015 17th November 2015 (Istanbul) IFN Saudi Arabia Forum 2015 30th November 2015 (Riyadh) IFN Iran Forum 2015 2015 (Tehran) Application of Islamic Principles in Shariah Fund Management 13th November 2014 (Kuala Lumpur) Islamic Treasury and Risk Management Products 17th - 19th November 2014 (Dubai) Effective Derivative Product Operations 17th - 19th November 2014 (Kuala Lumpur) Funds Transfer Pricing 1st - 3rd December 2014 (Kuala Lumpur) Personal Data Protection Act 1st - 2nd December 2014 (Kuala Lumpur) Takaful: Concepts, Products and Operation 8th - 10th December 2014 (Kuala Lumpur) Funds Transfer Pricing 15th - 17th December 2014 (Hong Kong) Advanced Sukuk & Islamic Securitization 15th - 17th December 2014 (Dubai) Shariah Audit for Islamic Investment & Capital Market Instruments 12th - 13th January 2015 (Kuala Lumpur) IFSA 2013 and Islamic Banking Deposits 22nd January 2015 (Kuala Lumpur) Managing Operational Risk in Trade Finance 26th - 27th January 2015 (Kuala Lumpur) Structuring Bank Payment Obligations 28th - 29th January 2015 (Kuala Lumpur) Ethical Banking, Sustainable & Responsible Investment (SRI) Sukuk 10th - 11th February 2015 (Kuala Lumpur) Islamic Finance Qualification 9th - 11th March 2015 (Kuala Lumpur) Fixed Income Products & Bond Markets 9th - 10th March 2015 (Kuala Lumpur) Understanding & Applying Structured Products 11th - 13th March 2015 (Kuala Lumpur) Islamic Treasury and Risk Management Products 15th - 17th March 2015 (Riyadh) Effective Sukuk Structuring 21st - 23rd April 2015 (Kuala Lumpur) Structuring Islamic Trade Finance Solutions 26th - 28th April 2015 (Riyadh) Structuring Sukuk & Islamic Capital Market Products 26th - 28th April 2015 (Muscat) Managing Counterparty Credit Risk, Basel III and Recent Regulatory Issues 7th - 8th May 2015 (Kuala Lumpur) Fixed Income Products & Bond Markets 11th - 12th June 2015 (Istanbul) Managing Counterparty Credit Risk, Basel III and Recent Regulatory Issues 9th - 10th July 2015 (Hong Kong) Islamic Finance Qualification 5th - 7th October 2015 (Kuala Lumpur)