The shareholders of International Islamic (QIIB) yesterday gave approval to the bank to raise up to QR3bn (about $824m) through a capital-boosting Sukuk which will not be convertible into ordinary shares.
The bank may use the capital to finance its new projects and expansion plans as it announced to open six new branches across the country.
Britain is stepping up its commitment to expanding its role in the booming global industry for Islamic finance. U.K. Export Finance, the government’s export-credit body that is backing a proposed sale of Shariah-compliant bonds by Emirates airline, plans to extend guarantees to other industries, according to Hugo Swire, minister of state at the U.K.’s Foreign and Commonwealth Office. Emirates is planning to raise about $1 billion from its first sale of so-called sukuk in two years, two people with knowledge of the matter said Feb. 19.
The upside for sovereign sukuk issuance in GCC countries is limited in 2015, according to Standard & Poor's (S&P) Ratings Services.
Although S&P expects lower oil prices to lead to fiscal deficits in some countries in the GCC, most governments' net asset positions will likely remain strong enough to enable their financing.
Malaysia's $40 billion sovereignwealth fund Khazanah Nasional plans to issue a sukukworth up to one billion ringgit ($279.17 million) to help fundschools, its managing director said on Thursday. Speaking to Reuters on the sidelines of an Islamic financeevent in London, the fund's head Azman Mokhtar said the planned"social impact sukuk" is awaiting regulatory approval fromMalaysian financial regulators.
When the first sukuk in Turkey was issued by KuveytTürkKatilimBankasi A.Ş. in 2010 through a Cayman Islands special purpose vehicle, the legal and tax infrastructure in Turkey was almost non-existent. Over the last four years, laws and regulations pre-approving certain Islamic structures and providing for the incorporation of asset leasing companies (Turkish special purpose vehicles) (ALC) have come into force and the tax treatment of certain Islamic structures has been addressed favourably.
After a quiet start to 2015, Sukuk market activity picked up this week a short-term issuance from Bahrain and the IILM.
The International Islamic Liquidity Management (IILM) has successfully reissued USD990 million benchmark size short-term Sukuk.
Niger's government will establish an Islamic bond programme worth 150 billion CFA francs ($260 million), permitting its first issue of sukuk, with assistance from the private sector arm of the Islamic Development Bank , the Jeddah-based body said.
African markets are gradually opening to Islamic finance, encouraged by governments' debut sales of sovereign sukuk and legislative efforts to make the sector more attractive for companies across the region.
The Indonesian government plans to broaden the underlying assets used for its Islamic debt papers (sukuk) as it seeks improve liquidity in the sharia-compliant bonds market in the world’s most Muslim-populated nation.
The government is studying using state-owned goods and services as underlying assets for sukuk issuances, which have normally used infrastructure projects as collateral, says Robert Pakpahan, the head of the Finance Ministry’s financing and risk management office (DJPR).
Australia is set to become the newest entrant to the Islamic debt market this year as a solar-power joint venture seeks to sell a debut sukuk in Malaysia’s offshore tax haven of Labuan.
SGI-Mitabu, run by The Solar Guys International and Mitabu Australia Pty, has revived a plan to offer A$150 million (RM415 million) of the securities in the third quarter to finance the building of a plant in Indonesia, M. Rusydi, Mitabu’s director, said by phone from Brisbane on February 10. The company is coming to Malaysia because Australia still hasn’t approved laws allowing for the sale of sukuk since first proposing a plan in 2010.