From the potential closing of the Dana Gas controversy to the reopening of investigations into the 1MDB financial scandal, here are the top news you need to know for this week:
Corporate Sukuk boom
This week, the Middle East dominated the Sukuk market. In the UAE, Virgin Mobile Middle East and Africa floated a senior secured US$30 million pre-IPO exchangeable Sukuk facility, whereas Iran's Saba Naft Engineering and Construction Company was due to float its four-year Sukuk Ijarah facility over three consecutive days of this week. QIIB's CEO, Dr Abdulbasit Ahmed Al Shaibei, said that the bank is waiting for the "right time" to float its US$500 million five-year Sukuk, according to Peninsula Qatar. A number of short-term papers also hit the Malaysian Sukuk market.
Indonesia and Niger state progress with respective Islamic papers
Indonesia has privately placed a new series of Sukuk, PBS-014, with a nominal value of IDR1 trillion (US$71.12 million). The issuance followed the Ministry of Finance's weekly auction of Shariah securities, which raised IDR4.06 trillion (US$288.76 million).
In Nigeria, the Niger state government is negotiating a 17% yield with a seven-year repayment plan for its planned NGN21.5 billion (US$59.38 million) Sukuk, Daily Trust reported citing Alhaji Zakari Abubakar, the commissioner of finance.
Malaysia declassifies 1MDB report
The 1Malaysia Development (1MDB) financial scandal, dubbed one of the largest in the world involving a number of nations, saw a fresh turn this week as the Auditor-General's Office declassified a report detailing the income and expenditure of the company. The report indicated that, among others, the money raised through a number of sources, including via Islamic papers, was not entirely channeled to the intended development of the Tun Razak Exchange and Bandar Malaysia projects. Meanwhile, a number of nations are ready to cooperate with Malaysia to reopen investigations into the scandal, according to Bloomberg.
Dana Gas reaches agreement with Sukukholders
After more than a year since it started and countless court proceedings in both the UAE and the UK, Dana Gas is finally inching to a resolution with an agreement which includes an opportunity for Sukukholders to tender their claims at 90.5 US cents per US$1 of the face value of their holdings, among others. Dana Gas also proposed a new three-year Sukuk Wakalah facility for holders opting for a partial paydown and exchange into the new instrument. The deal is conditional upon approval from Dana Gas's shareholders and existing Sukukholders.
Mergers and acquisitions of Islamic banks underway
Saudi's effort to create the third-largest lender by asset size saw progress this week with Saudi British Bank (SABB) announcing that its merger discussions with the Royal Bank of Scotland Group-backed Alawwal Bank have reached an advanced stage, with the boards of both parties reaching a preliminary, non-binding agreement on the share exchange ratio, subject to a number of important steps (including the completion of confirmatory due diligence, finalization of the merger agreement and agreement on a number of other commercial issues). Despite that, a binding agreement is yet to be entered into between SABB and Alawwal.
The UAE's Emirates NBD's talks with Russia-based Sberbank to acquire Turkish Denizbank are still ongoing and are expected to be concluded this month, Reuters reported citing Denizbank CEO Hakan Ates.
Noor Financial Investment announced that it has entered into discussions with foreign institutional investors to divest a 9.59% of its stake in Meezan Bank, a Pakistani Islamic bank. Noor Financial owns 49.11% of Meezan Bank.
Blossom Finance launches microfinance fund
In Indonesia, Blossom Finance debuted its Islamic microfinance fund, which is now open for enrollment. The fund provides opportunities to investors to invest in a range of cryptocurrency options including bitcoin, bitcoin cash and Ethereum via Blossom's US Delaware-based fund.
Kenya proposes same tax on Islamic finance products
Kenya is looking to further accommodate Islamic finance with the Islamic Finance Project Management Office (PMO) proposing same tax on Islamic finance products with conventional offerings to boost the attractiveness of Shariah compliant products, according to the Business Daily Africa. The PMO also laid out other measures, including the development of Islamic liquidity management solutions for Shariah governance.
BRISyariah listed on IDX
Following an IPO of 2.65 billion shares, representing 27% of the issued and paid-up capital of the bank, Bank Rakyat Indonesia Syariah (BRISyariah) was listed on the main board of the Indonesia Stock Exchange (IDX). |
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