MALAYSIA: Sukuk forms over 93% of independent power producer bonds in Malaysia; power sector to drive Sukuk growth moving forward

Thursday, 30th July 2015

S&P 500 Shariah Dow Jones Islamic World FTSE Shariah All World Russell - IdealRatings Islamic Global 1,836.37 2,923.12 2,022.53 1,907.73 ▲ 14.69 (0.81%) ▲ 20.68 (0.71%) ▲ 17.29 (0.86%) ▲ 31.56 (1.68%)

HIGHLIGHTS: Ivory Coast plans debut Sukuk roadshow – MBSB considering merger with Bank Muamalat – Iran passes terrorism financing prevention bill

This week's poll question: What is the most cost effective way to increase Islamic retail banking customers?

Kuveyt Turk issues Turkey’s largest lira Sukuk Daily Cover TURKEY: Kuveyt Turk Participation Bank has sold Turkey’s largest lira Sukuk to date through an IPO, against the backdrop of a healthy Turkish Sukuk pipeline. The bank raised TRY160 million (US$59.46 million) from the 189-day lease certificate issued via Kira Sertifikaları Varlık Kiralama, which is the biggest local currency issuance by the private sector in the domestic market and tops its previous offering of TRY150 million (US$55.74 million). Pioneering the Sukuk market in Turkey by selling the first-ever lease certificates (as Sukuk is colloquially known) in 2010, the latest sale brings the aggregate value of Sukuk (both domestic and international) issued by Kuveyt Turk to approximately TRY4.2 billion (US$1.56 billion). “The issuance of the lease certificates, with a gross annual yield of 10.63%, was also achieved at a cost that is lower than similar transactions realized recently,” shared Ufuk Uyan, CEO of Kuveyt Turk, in a statement. Facilitated by Halk Yatırım Menkul Değerler as consortium lead and Bizim Menkul Değerler as consortium partner, Kuveyt Turk’s entry to the market rides on other planned issuances including by the government and Turkiye Finans. Kuveyt Turk last tapped the Islamic debt capital markets in May with a RM300 million (US$78.97 million) ringgit-denominated Sukuk issued in Malaysia, as part of its RM2 billion (US$526.44 million) Malaysian Islamic bond program. And the bank will continue to raise funding via Sukuk as hinted by Uyan who said: “Going forward, we will continue to contribute to the Sukuk markets.” South Africa: An IFN Correspondent Report Entrenching Sukuk into the fabric of the South African economy The South African government has followed through on their intention of ensuring accessibility of Islamic financial arrangements to ‘other’ entities (over and above just the sovereign government itself and state-owned entities) to also allow for an alternate additional source to raise capital. Today's IFN Alerts IVORY COAST: Ivory Coast to conduct roadshow for first tranche of inaugural Sukuk program in the fourth quarter MALAYSIA: Sukuk forms over 93% of independent power producer bonds in Malaysia; power sector to drive Sukuk growth moving forward GLOBAL: IDB commits US$77 million to new development projects in both member and non-member countries MALAYSIA: Malaysia Building Society to obtain fully-fledged Islamic banking license with Bank Muamalat merger plan underway IVORY COAST: President of Cote d’Ivoire, Alassane Ouattara, to officiate the Africa Islamic Finance Forum organized by ICD MALAYSIA: Bursa Malaysia proposes new reporting framework to enhance sustainability of capital market IRAN: Iran passes terrorism financing prevention bill to build ties with international banking community MALAYSIA: Malaysian Finance Ministry’s investment arm disposes its entire stake in Bursa Malaysia to Retirement Fund UAE: Dubai Islamic Bank’s net profit surges 35% to AED1.8 billion (US$471.76 million) for the first half of 2015 MALAYSIA: Maybank Islamic maintains ‘AAA’ rating GLOBAL: AM Best appoints Gregson Carter as managing director, analytics, for EMEA markets INDONESIA: Indonesia’s finance minister to deliver keynote address at the IFN Issuers Forum taking place at the Ritz Carlton DIFC in Dubai on the 13th September UAE: Abdulla Al Awar to deliver keynote address at the IFN Issuers Forum in Dubai this September TURKEY: Turkiye Finans shows full support for IFN Turkey Forum 2015 as lead partner 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

IFN Issuers Forum 2015 13th September 2015 (Dubai) Africa Islamic Finance Forum 2015 17th & 18th September 2015 (Abidjan, Cote d’Ivoire) IFN Kuwait Forum 2015 19th October 2015 (Kuwait City) IFN Turkey Forum 2015 17th November 2015 (Istanbul) IFN Saudi Arabia Forum 2015 30th November 2015 (Jeddah) 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)