GFH forayed into international debt markets with its USD 300 million Sukuk issuance on the Nasdaq Dubai on February 25th, 2020. The issue was oversubscribed by two-and-a-half times.  The investors split was 53% regional and 47% international. In addition, 61% of the investor base were fund managers, with the remainder being financial institutions. GFH further plans to finance its next phase of growth through capital raised from the Sukuk issuance.  Jassim Alseddiqi, the Chairman of GFH, stated that the oversubscription was an indication of investors...

Since the adoption of the United Nations’ SDGs globally, governments have been taking steps towards achieving these targets. However, the level of change required is not something that governments can achieve without the help of corporates.Sustainable financing provides a way for companies to transition their activities towards a more environmentally friendly and sustainable future. In particular, Green Sukuk (in which proceeds can only be used for climate-friendly investments) is gaining popularity.Standard & Poor’s Global estimates an increase in the Green Sukuk market in...

Islamic Fintech is the term used to describe Shariah-compliant fintech start-ups. Data from the Indonesia Shariah Fintech Association indicates that this market remains extremely small, accounting for Shariah-compliant loan disbursements of IDR 1 trillion in 2019 (four times higher than 2018 levels).Given that Indonesia’s Islamic banking industry accounts for just 6% of the country’s USD 580 billion banking assets, there is significant potential for growth.Half of Indonesia’s 270 million Muslim population (who are the majority) do not have bank accounts, but have access to mobile phones, creat...

Fawaz Abdulaziz Alhokair Company has taken on an Islamic finance facility with a syndicate of banks, including: Al Rajhi Banking and Investment Corporation, the National Commercial Bank, Samba Financial Group, Arab National Bank, Mashreqbank and Abu Dhabi Islamic Bank.The new facility comprises a USD 650 million, seven-year Murabaha facility, as well as a USD150 million revolving standby credit facility, with a tenure of three years.The Murabaha facility will particularly be used to refinance existing group debt, while the revolving standby credit facility will be used to finance the company...

Egyptian conglomerate Talaat Moustafa Group (TMG) is preparing to issue its first Sukuk in the country during March 2020, valued at EGP 2 billion.CIAF Leasing, an aircraft leasing company in Egypt, also plans to issue a USD 50 million Sukuk. However, the company has rescheduled its plans to mid-2020 citing uncertainty caused by the coronavirus.These two transactions will see Sukuk issuances at approximately EGP 2.8 billion by mid-2020. In addition, the Financial Supervisory Authority, Egypt has disclosed that two other companies have also requested to issue Sukuk, one being a firm in the servi...

An industry source emphasised on the importance of having greater clarity in regulations for the evolving Shariah-compliant finance sector in Nigeria. The country’s capital market regulators have been supportive in general, as reflected in the two Federal Government of Nigeria (FGN) Sukuk issuances between 2017 and 2018.The FGN has planned for a third Sukuk issuance in 2020. More sub-national Sukuk issuances are anticipated through 2020, as many states in Nigeria seek non-interest sources of funding for infrastructure development.Sukuk finance calls for greater accountability and fac...

Since 2017, the government of Indonesia has been issuing sovereign Sukuk in the first quarter of each year and is said to be in the process of preparing the same for 2020.While the amount of the Sukuk has not yet been disclosed, it is expected to be issued within the first week of March 2020 and will be arranged by a consortium of international banks, including Dubai Islamic Bank, HSBC and Standard Chartered Bank.The government’s last Sukuk issuance was in February 2019, when it sold a USD 750 million green Sukuk (3.9% profit rate) with a five-and-a-half-year duration and a USD 1.25...

Global Sukuk issuances were at USD 4 billion in the first quarter of 2020, led by major issuers: Qatar Islamic Bank, National Bank of Kuwait and Federation of Malaysia.In comparison, global Sukuk issuances in the first quarter of 2019 was much higher, exceeded USD 18 billion.Sukuk issuances across the Gulf Cooperation Council (GCC) surpassed USD 2.8 billion in the first quarter of 2020, compared to over USD 5.2 billion issues in the quarter ended March 2019.Investors were attracted to comparatively high returns offered by the GCC region in 2019, as central banks globally cut rates to man...

The Financial Strength Ratings (B) and the Long-term Issuer Credit Ratings (BB) of Noor Takaful General PJCS (NTG) and Noor Takaful Family PJSC (NTF), have been placed under review following the acquisition announcement by the UAE’s Dar Al Takaful, on February 18th, 2020.AM Best has stated that it needs to assess the impact that a potential change in ownership of NTG and NTF will have on the companies’ credit fundamentals, as well as the likely impact of the consolidated financial strength and leverage of the new parent on the subsidiaries.The potential acquisition is pending r...

Dubai Islamic Bank has postponed the issuance of its estimated USD 750 million Sukuk, given increased market volatility following the coronavirus outbreak. A consortium of banks in the United Arab Emirates, including Emirates NBD Capital, First Abu Dhabi Bank, HSBC, and Standard Chartered Bank had been hired to arrange the issuance of the Sukuk, which was initially set for February 26th, 2020.The potential issuance had received an extremely positive response during its marketing phase. However, the bank decided to wait for market conditions to improve, as the impact of the coronavirus would...