TURKEY: Turkey to utilize Sukuk and yen bonds to raise US$1.5 billion this year

Thursday, 25th June 2015

S&P 500 Shariah Dow Jones Islamic World FTSE Shariah All World Russell - IdealRatings Islamic Global 1,847.21 2,987.03 2,095.51 1,944.60 ▼ -12.02 (-0.65%) ▼ -14.09 (-0.47%) ▲ 1.14 ▼ -11.05 (-0.57%)

HIGHLIGHTS: Turkey expects to issue Sukuk in fourth quarter – South African electricity company plans global Sukuk offering – MAA Group to dispose entire stake in Takaful subsidiary – SWIFT releases Islamic finance rulebook

This week's poll question: How does the decline in regular Sukuk issuances by central banks affect Islamic debt capital markets in their respective countries?

Airbus and Saudi Arabia in largest Islamic aviation deal Daily Cover GLOBAL: Saudi Arabia’s flagship airline carrier, Saudia, will be expanding its fleet by Shariah compliant financial means, through its largest aircraft leasing deal yet as the Kingdom anchors its footing as the world’s largest Islamic finance player and positions itself to grab a larger market share in the aviation landscape. The debt and equity financing of the 50 Airbus aircraft is set to drive the figures for Islamic aviation-related financing and further solidify Saudi Arabia’s standing as the top market for Shariah compliant deals. According to Dealogic, the Kingdom holds 43.6% of the global market share for Shariah financing, a comfortable margin ahead of the UAE (24.6%) and Malaysia (14.8%). Arranged by Dubai’s Quantum Investment Bank and Palma Capital, the transaction will see the sale of 30 Airbus A320-200 and 20 A330-300 aircraft by the French manufacturer to Alif Fund, an Islamic aircraft leasing fund of which Airbus and the IDB are anchor investors and strategic partners. Launched 12 months ago, the fund is gaining exceptional momentum, demonstrating the increasing preference for Islamic financial instruments by the aviation community. Dr Idriss Ghodbane, CEO of Quantum Investment Bank (also a placement agent for the Alif Fund), earlier this year confirmed to IFN that the fund was targeting to acquire up to 20 aircraft within a span of one year, but the latest deal – also the largest Shariah compliant aviation financing deal – clearly accelerated and exceeded the firm’s expectations. Saudia’s transaction follows a host of recent Islamic aviation deals including: Kuwait Airway’s recent aircraft procurement (also through Alif Fund), Garuda Indonesia’s US$500 million Sukuk last month (See Case Study Vol 12 Issue 25: ‘Garuda Airlines Sukuk: First unrated US dollar Sukuk from an Asia Pacific issuer’) and Emirates Airlines’s UK-backed Sukuk in March (See Case Study Vol 12 Issue 16: ‘World’s first export credit agency-guaranteed Sukuk: Emirates Airline’). Today's IFN Alerts TURKEY: Turkey to utilize Sukuk and yen bonds to raise US$1.5 billion this year SOUTH AFRICA: Eskom seeks access to international Shariah liquidity with global Sukuk SAUDI ARABIA: Riyad Bank completes issuance of SAR4 billion (US$1.07 billion) Sukuk INDONESIA: Indonesia to hold Sukuk auction on the 30th June GLOBAL: SWIFT puts focus on Shariah compliant transactions; releases Islamic finance rulebook UAE: Dubai Chamber of Commerce and Industry and Emirates Islamic join hands to provide funding facilities to Emirati entrepreneurs MALAYSIA: MAA Group to dispose entire stake in Takaful joint venture with Bahraini operator UAE: Amlak Finance may partner with Emaar Properties in land development projects GLOBAL: President of IDB conferred the title of Honorary Professor of the Russian Islamic University MALAYSIA: RAM assigns top investment grade rating to AEON Credit Service’s proposed Islamic facility MALAYSIA: RAM maintains stable ratings on Al-‘Aqar Healthcare REIT’s Islamic papers GLOBAL: IFN Asia Forum breaks 1,000-delegate mark yet again – dates for next year confirmed SAUDI ARABIA: Islamic Corporation for the Development of the Private Sector chief to deliver keynote address at the IFN Saudi Arabia Forum MALAYSIA: Industry leaders address Islamic finance investment opportunities at IFN Asia Investors Day Forum 2015 SAUDI ARABIA: Saudi British Bank supports IFN Saudi Forum 2015 as lead partner

IFN Issuers Forum 2015 13th September 2015 (Dubai) IFN Kuwait Forum 2015 5th October 2015 (Kuwait City) IFN Egypt Forum 2015 27th October 2015 (Cairo) IFN Turkey Forum 2015 17th November 2015 (Istanbul) IFN Saudi Arabia Forum 2015 30th November 2015 (Jeddah) Funds Transfer Pricing 6th - 8th July 2015 (Hong Kong) Managing Counterparty Credit Risk, Basel III and Recent Regulatory Issues 9th - 10th July 2015 (Hong Kong) Understanding Islamic Contracts: Structuring & Legal Issues 17th - 19th August 2015 (Dubai) Islamic Financial Services Act (IFSA) 2013 & Islamic Banking Products 18th & 25th August 2015 (Kuala Lumpur) Shariah Audit & Governance for Islamic Banking 20th - 21st August 2015 (Kuala Lumpur) Islamic Finance Qualification 23rd - 25th August 2015 (Dubai) Advanced Sukuk & Islamic Securitization 24th - 26th August 2015 (Istanbul) Undertaking Effective Litigation & Recovery in Islamic Finance Facilities 7th - 8th September 2015 (Kuala Lumpur) Sharia’a Compliance & Audit for Islamic Banks 8th - 9th September 2015 (Dubai) Funds Transfer Pricing 5th - 7th October 2015 (Kuala Lumpur) Trading Book Market Risk Management for Financial Institutions 8th - 9th October 2015 (Kuala Lumpur)