Bloomberg News

Bahrain, Poh Kong, Majid Al Futtaim, Anih: Islamic Bond Alert

October 31, 2011

Nov. 1 (Bloomberg) -- The following borrowers are expected to sell Islamic bonds, which use asset returns to pay investors to comply with the religion’s ban on interest. Global sales of sukuk climbed to $18.9 billion in 2011, from $13.5 billion a year earlier, according to data compiled by Bloomberg.

BAHRAIN: The country is still “on track” to sell $1 billion of Shariah-compliant debt, Sheikh Salman bin Isa Al Khalifa, executive director of banking operations at Bahrain’s Central Bank, said in an e-mail. Central bank Governor Rasheed al-Maraj said in an interview in September that Citigroup Inc., BNP Paribas SA and Standard Chartered Plc have been hired to advise on the sale. He said the maturity of the sukuk may be between seven and 10 years.

(Added Oct. 31. News: TNI BAHRAIN NEWBON <GO>)

POH KONG HOLDINGS BHD.: The Malaysian jewelry maker said it has been given approval by the Securities Commission to sell 150 million ringgit ($48.4 million) of Islamic debt, which will be backed by Danajamin Nasional Bhd., a state bond-guarantee agency, the company said in a Kuala Lumpur exchange filing.

(Added Oct. 31. News: PKH MK <Equity> CN <GO>)

MAJID AL FUTTAIM HOLDING LLC: The Dubai-based operator of Carrefour SA stores in the Middle East has hired HSBC Holdings Plc and Standard Chartered Plc to arrange a sukuk program, a person familiar with the transaction said. The company plans to issue Islamic bonds in “a few weeks” barring a further decline in global market conditions, Iyad Malas, the chief executive officer, said in an interview in Jordan on Oct 23.

(Added: Oct. 31. 924669Z UH <Equity> CN <GO>)

ANIH BHD: The toll road concessionaire has hired CIMB Investment Bank Re Bhd. and Maybank Investment Bank Bhd. to help arrange a 2.5 billion ringgit sale of Islamic bonds and a 620 million ringgit sale of subordinated notes, according to a person familiar with the matter. Proceeds from the sale will be used to buy toll road Lo concessions owned by MTD Prime Bhd. and Metramac Corp. Bhd., according to an e-mailed information memorandum.

(Added: Oct. 25. TNI MALAY ISLAMFIN <GO>)

LANDASAN RIA SDN: The 51-percent owned company of the Malaysian Armed Forces Fund Board is planning to sell 545 million ringgit ($174 million) of Islamic bonds to finance the purchase of eight aircraft, according to a person with knowledge of the matter. The company has hired Maybank Investment Bank Bhd., Hong Leong Investment Bank Bhd. and Affin Investment Bank Bhd. to help arrange the sale, said the person said.

(Added: Oct. 25. TNI MALAY ISLAMFIN <GO>)

SAUDI ARABIA: The Persian Gulf country may finance Jeddah’s King Abdulaziz International Airport expansion project by selling Sukuk, or Islamic bonds, Al Eqtisadiah reported, citing Finance Minister Ibrahim al-Assaf.

(Added: Oct. 25. TNI SAUDI ISLAMFIN <GO>)

ALBARAKA TURK KATILIM BANKASI AS: The Turkish Islamic bank owned by Bahrain-based Albaraka Banking Group BSC hired Deutsche Bank AG, Emirates NBD, QInvest Llc and Noor Islamic Bank to manage a sale of as much as $200 million of five-year Islamic bonds, it said in a statement to the Istanbul Stock Exchange on Oct. 21. Albaraka Banking and its unit in Turkey may raise a total of $500 million from sukuk this year, Chief Executive Officer Adnan Ahmed Yousif said in an interview in Washington on Sept. 24.

(Added Oct. 21. News: BARKA DU <Equity> CN <GO>)

ASYA KATILIM BANKASI AS: The Turkish Islamic bank will offer as much as $300 million of five-year sukuk. Bank Asya, as the lender is known, hired Citigroup Inc. and UBS AG for the sale and has started talks with investors, the bank said in a filing with the Istanbul Stock Exchange.

(Added Oct. 20. News: ASYAB TI <Equity> CN <GO>)

GOLDMAN SACHS GROUP INC. The New York-based bank’s filing of a prospectus for a $2 billion Islamic bond program for listing on the Irish Stock Exchange has been approved by the Central Bank of Ireland. Goldman Sachs International unit set up Global Sukuk Company Ltd., which is incorporated in the Cayman Islands, as trustee and seller of so-called murabaha trust certificates, according to the prospectus, published on the Dublin-based central bank’s website.

(Added Oct. 19. News: GS US <Equity> CN <GO>)

PAKISTAN: The government plans to sell 180 billion rupees ($2.1 billion) of Shariah-compliant debt in the fiscal year that ends on June 30, Assad Amin, a spokesman at the finance ministry, said in an interview. The total will include 70 billion rupees of Ijara sukuk which will be sold in the quarter ending Dec. 31, Amin said.

(Added Oct. 17. News: TNI PAKISTAN NEWBON <GO>)

ALMARAI CO.: Saudi Arabia’s largest food producer by market value may set up its first Shariah-compliant bond program by early 2012, Chief Financial Officer Paul-Louis Gay said in an e- mailed response to questions. The riyal sukuk would be available only to the local market and would help finance an “ambitious capital expenditure development plan and working capital needs,” he said.

(Added Oct. 17. News: ALMARAI AB <Equity> CN <GO>)

INDONESIA: The government may sell $500 million of sukuk this year in its second global offering, Dwi Irianti Hadiningdyah, deputy director of Islamic finance at the debt management office, told reporters. “We may upsize the offering depending on demand,” she said.

(Added Oct. 17. News: TNI INDONESIA NEWBON <GO>)

MYDIN MOHAMED HOLDINGS BHD.: A Malaysian operator of hypermarkets and convenience stores plans to sell 350 million ringgit of Islamic bonds, according to RAM Rating Services Bhd. The notes will be backed by state bond-guarantee agency Danajamin and have been rated AAA, RAM said.

(Added Oct. 13. News: 236027Z MK <Equity> CN <GO>)

BARWA BANK: The unit of Qatar’s biggest property developer by assets Barwa Real Estate Co., plans to sell Islamic bonds in 2013 after it gets a credit rating, Chief Executive Officer Steve Troop said.

(Added Oct. 10. News: BRES QD <Equity> CN <GO>)

SAUDI ARAMCO TOTAL REFINING & PETROCHEMICAL CO: The company, also known as Satorp, may sell a second Islamic bond after the sale of the company’s first sukuk was oversubscribed, Jamal Al- Rammah, chief of corporate finance for Saudi Arabian Oil Co., the Saudi partner, said at a news conference in Dammam. Satcorp is a joint venture between Saudi Arabian Oil Co. and France’s Total SA.

(Added Oct. 9. News:131861Z AB <Equity> CN <GO>)

ISLAMIC BANK OF THAILAND: The state-owned lender plans to raise 5 billion baht ($162 million) in the country’s first domestic sale of sukuk this year, Dheerasak Suwannayos, president of the Bangkok-based bank, said in an interview. The bank is awaiting clarification from government regulators on tax breaks for Shariah-compliant bonds before proceeding with the issue. It will sell $150 million of Islamic bonds overseas once the local-currency offering is completed, Dheerasak said.

(Added: Oct. 5. News: TNI THAI ISLAMFIN BN <GO>)

ABU DHABI NATIONAL ENERGY CO.: The state-owned utility, also known as Taqa, plans to sell as much as 3.5 billion ringgit of Islamic bonds in Malaysia, according to a statement to the Abu Dhabi bourse.

(Added Oct. 2. News: TAQA UH <Equity> CN <GO>)

TAMWEEL PJSC: The mortgage company majority-owned by Dubai Islamic Bank PJSC, plans to raise $300 million to $500 million from the sale of Islamic bonds in the fourth quarter, its first debt sale since 2008, acting Chief Executive Officer Varun Sood said in Dubai. The offering will be denominated in dollars or ringgit, he said.

(Added on Sept. 27. News: TAMWEEL UH <Equity> CN <GO>)

QATAR INTERNATIONAL ISLAMIC BANK: The Persian Gulf country’s biggest Shariah-compliant lender plans to sell a five- year, benchmark-size dollar sukuk “when market conditions permit,” Chief Financial Officer Edward Wong said in a telephone interview from Doha.

(Added Sept. 12. News: QIIK QD <Equity> CN <GO>)

PALESTINE MONETARY AUTHORITY: The central bank plans to issue $50 million of Islamic debt this year, Jihad Al Wazir, governor of the Palestine Monetary Authority, said in an interview.

(Added Sept. 12. News: TNI PALESTINE NEWBON <GO>)

AL HILAL BANK: The state-owned lender in the United Arab Emirates plans to raise $500 million from the sale of Islamic bonds in the fourth quarter, Mohamed Berro, the chief executive officer, said in an interview. The offering is part of a $2.5 billion sukuk program set up by the Abu Dhabi government- controlled Islamic bank, he said.

(Added Aug. 28. News: 1023350Z <Equity> CN BN <GO>)

EMERY OLEOCHEMICALS GROUP: The producer of plastic additives is proceeding with plans to sell 480 million ringgit of Islamic bonds in the fourth quarter, CEO Kongkrapan Intarajang said. Emery is a joint venture between PTT Chemical International Private Ltd., a unit of PTT Chemical Pcl, and Sime Darby Plantation Sdn., owned by Malaysia’s Sime Darby Bhd.

(Added Aug. 19. News: TNI MALAY ISLAMFIN <GO>)

PT BANK MUAMALAT INDONESIA: Indonesia’s second-largest Islamic bank will sell $50 million of dollar-denominated sukuk with a maturity of not more than five years in 2011, Hendiarto, chief financial officer at the bank, told reporters on July 21. The lender is also planning to sell 800 billion rupiah ($90 million) of local-currency Islamic bonds in 2012, Hendiarto said.

(Added: July 21. News: 49287Z IJ <Equity> CN <GO>)

INTERNATIONAL ISLAMIC LIQUIDITY MANAGEMENT CORP.: The global institution set up by central banks from countries including Malaysia and Bahrain plans to sell $200 million to $300 million of short-term Islamic bills before the end of 2011, Chief Executive Officer Mahmoud AbuShamma said in an interview. The first issuance will likely have a maturity of three months and will be denominated in dollars, he said. IILM will also sell Shariah-compliant bonds maturing in more than five years, AbuShamma said, declining to give a timeframe.

(Added July 18. News: NSE “ISLAMIC LIQUIDITY” <GO>)

ACWA POWER INTERNATIONAL: The Saudi Arabia-based developer of electricity and water projects may sell $300 million of Islamic debt next year, CEO Paddy Padmanathan said in Dubai. The company is seeking funds for utility investments.

(Added July 7. News: 3486180Z AB <Equity> CN <GO>)

AL BARAKA BANK EGYPT ESC: The Cairo-based Islamic unit of Albaraka Banking Group BSC expects to raise 1 billion Egyptian pounds ($168 million) from the sale of 10-year Islamic bonds, Manama-based CEO Adnan Ahmed Yousif said in an interview.

(Added July 5. News: ESFB EY <Equity> CN <GO>)

JORDAN: Jordan’s government plans to sell as much as $750 million of Shariah-compliant debt to finance its budget deficit and fund infrastructure projects, said Finance Minister Mohammad Abu Hammour.

(Added June 27. News: TNI JORDAN ISLAMFIN <GO>)

NIGERIA: Nigeria wants to sell its first Shariah-compliant bonds within 18 months as sub-Saharan Africa’s second-largest economy aims to become a “hub of Islamic finance” in the region, central bank Governor Lamido Sanusi said.

(Added June 20. News: TNI NIGERIA NEWBON <GO>)

SENEGAL: The West African nation’s $200 million sukuk to be sold later this year will be used for budgetary support, said Finance Minister Abdoulaye Diop. “We simply want to experiment, to diversify our sources of income,” Diop said.

(Added June 15. News: TNI SENEGAL ECO <GO>)

RUSSIA: Executives from OAO Gazprombank, the lending arm of gas export monopoly OAO Gazprom, are seeking support for issuance of Islamic bonds by as many as five companies, Alexander Kazakov, director of structured and syndicated finance at the bank, said in an interview in Jakarta. Tatarstan, a Muslim-majority Russian republic, will announce a dollar- denominated sale soon, according to Kuala Lumpur-based adviser AmanahRaya Investment Bank Ltd.

(Added June 20. News: TNI RUSSIA NEWBON <GO>)

PT BANK SYARIAH BRI: The Islamic banking arm of Indonesia’s second-largest lender by assets may sell sukuk in the next one to two years to support expansion, President Director Ventje Rahardjo told reporters in Jakarta.

(Added June 15. News: TNI INDONESIA ISLFIN <GO>)

KAZAKHSTAN: The government may sell at least $500 million of Islamic bonds once parliament approves a law on Islamic finance, Finance Minister Bolat Zhamishev said in an interview in the capital Astana.

(Added May 19. News: TNI ISLAMFIN KAZAKH <GO>)

SAUDI ELECTRICITY CO.: The state-owned utility may sell as much as $1.5 billion in Islamic bonds by the end of this year or early 2012, CEO Ali Al-Barrak told reporters at a conference in Dubai.

(Added: May 18. News: SECO AB <Equity> TCNI BON <GO>)

TOURISM DEVELOPMENT & INVESTMENT CO.: The Abu Dhabi government-backed developer of hotels and museums may sell bonds with maturities of seven to 10 years in 2011 to finance projects, Director of Finance Wallace Long said. The debt may be conventional or Islamic, he said.

(Added April 14. News: 2306347Z UH <Equity> CN <GO>)

ABU DHABI ISLAMIC BANK PJSC: The United Arab Emirates’ second-biggest Shariah-compliant lender may sell Islamic bonds by the end of this year to help repay an $800 million sukuk that matures in December, CEO Tirad Mahmoud said at a news conference.

(Added April 10. News: {ADIB UH <Equity> CN BN <GO>.})

MASRAF AL RAYAN: Qatar’s second-largest Islamic bank plans to sell as much as $1 billion of sukuk in the fourth quarter after its board received shareholder approval, Chairman Hussain Ali Al-Abdalla said.

(Added March 29. News: TNI ISLAMFIN NEWBON <GO>)

UNITED ARAB EMIRATES: Abu Dhabi may sell $1.5 billion in bonds in 2011 to create a long-dated benchmark, while Dubai, its smaller neighbor, also may issue $1.5 billion to fund its budget, Standard Chartered Plc said in a March 7 report.

(Added March 8. News: TNI UAE ISLAMFIN <GO>)

SOUTH AFRICA: The biggest African economy will amend legislation to allow the government to sell Islamic bonds to finance spending, Lungisa Fuzile, head of asset and liability management at the Treasury, said in an interview in Cape Town.

(Added Feb. 23. News: TNI SAFRICA ISLAMFIN <GO>)

FRANCE: The country’s first Islamic bond may be sold in 2011 after the government introduces guidelines for sukuk offerings, said Thierry Dissaux, chief executive officer of the French Deposit Guarantee Fund. The debt may be in dollars and euros, he said.

(Added Dec. 15. News: TNI FRANCE ISLAMFIN BN <GO>)

--Editors: Simon Harvey

To contact the reporters on this story: Elffie Chew in Kuala Lumpur at echew16@bloomberg.net. To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net


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