Islamic Banker
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<strong>Islamic</strong> <strong>Banker</strong> March 2013 final _IB_JanFeb 2010.qxd 17/04/2013 16:12 Page 4<br />
Sukuk<br />
NEWS<br />
IN FOCUS<br />
bank asya issues debut Us$250m sukuk<br />
bANK ASyA<br />
US$250M FIxED RATE<br />
RESETTAbLE TIER 2 SUKUK<br />
saLient FeatURes at 28 maRch 2013<br />
ISSUER AND TRUSTEE asya sUKUK comPany Limited,<br />
RegisteRed in the cayman<br />
isLands<br />
ObLIGOR banK asya<br />
DATE OF ISSUE 28 maRch 2013<br />
SIZE OF ISSUE Us$250m FiXed Rate<br />
ResettabLe tieR 2<br />
ceRtiFicates<br />
ISSUE TyPE hybRid iJaRah-cUmmURabaha<br />
sUKUK - asset<br />
PooL comPRises 51% tangi-<br />
bLes and 49% mURabaha<br />
ReceivabLes<br />
TENOR 10 yeaRs<br />
PROFIT FREqUENCy semi-annUaL<br />
ANNUAL DIVIDEND 7.5% PeR annUm<br />
COUPON RATE<br />
ISSUE PRICE 100%<br />
PROFIT PAyMENT semi-annUaL<br />
FREqUENCy<br />
USE OF PROCEEDS the PRoceeds oF the issUe<br />
oF the ceRtiFicates WiLL be<br />
Paid by the tRUstee on the<br />
cLosing date to the seLLeR<br />
as the PURchase PRice FoR<br />
the asset PoRtFoLio and to<br />
the ReLevant commodity<br />
bRoKeR as the PURchase<br />
PRice FoR the commodities.<br />
GOVERNING LAW LaWs oF cayman isLands,<br />
tURKey<br />
jOINT LEAD MANAGERS nationaL banK oF abU dhabi<br />
PJsc; hsbc banK PLc; meRRiLL<br />
Lynch inteRnationaL;<br />
emiRates nbd caPitaL Limited<br />
RATING ba3 - moody’s deUtschLand<br />
gmbh<br />
CLEARING AGENTS cLeaRstReam, eURocLeaR<br />
LISTING iRish stocK eXchange<br />
(oFFiciaL List)<br />
SOURCE: banK asya maRch 2013<br />
bank asya has become the second<br />
turkish participation bank to raise<br />
funds from the international market<br />
through a debut 10-year Us$250m<br />
sukuk issuance in march 2013.<br />
the Us$250m Fixed Rate<br />
Resettable tier 2 certificates, according<br />
to bank asya, were issued by asya<br />
sukuk company Limited, a whollyowned<br />
special purpose vehicle registered<br />
in the cayman islands and sold<br />
to qualified investors residing outside<br />
of turkey. bank asya has the option of<br />
not paying the principal for at least five<br />
years. the annual dividend coupon<br />
rate is set at 7.5 per cent.<br />
the issuance, according to bank<br />
asya, attracted strong investor demand<br />
with some 52 per cent subscribed by<br />
investors in europe, 35 per cent in the<br />
middle east and 13 percent in asia.<br />
bank asya will use the proceeds partly<br />
to boost its tier ii capital and as such its<br />
capital adequacy ratio from 13 per cent<br />
to 16 per cent.<br />
the net proceeds of the issue of the<br />
certificates were applied by the issuer<br />
and the trustee on the closing date as<br />
follows: (a) not less than 51 per cent<br />
towards the purchase from bank asya<br />
of the tangible asset Portfolio comprising<br />
certain non-real estate assets<br />
(including related ijarah (lease) contracts and all rights under such contracts) and<br />
sukuk certificates; and (b) not more than 49 per cent. towards the purchase from a<br />
commodity broker of the shariah-compliant commodities (which shall be metals<br />
other than silver and gold traded on the over the counter market and may include<br />
metals traded on the London metal exchange) at spot price, which will be immediately<br />
sold to bank asya on immediate delivery but deferred payment terms at the<br />
deferred Payment Price, pursuant to the commodity murabaha agreement.<br />
the sukuk, which comprises effectively a hybrid sukuk al-ijarah and sukuk al<br />
murabaha and was jointly lead managed by national bank of abu dhabi PJsc,<br />
hsbc bank plc, merrill Lynch international and emirates nbd capital Limited, was<br />
assigned a ba3 rating by moody’s deutschaland gmbh and is listed on the irish<br />
stock exchange.<br />
this debut international sukuk follows the domestic turkish lira sukuk issued by<br />
bank asya in February 2013 - a tL125m 1-year sukuk issued through its whollyowned<br />
subsidiary, asya varlık Kiralama a.s. (asset Leasing company). the bank<br />
initially informed the turkish capital markets board that it intended to issue a 1-year<br />
sukuk totalling tL75m in nominal value, but if demand was strong it would raise the<br />
issuance amount to tL125m.<br />
another bank, Kuveyt turk Participation bank, according to ceo Ufuk Uyan, is<br />
also in the process of issuing its debut turkish lira sukuk.<br />
206 4 <strong>Islamic</strong> banker march 2013 Rabi al-thani - Jumada awwal 1434<br />
b A N K I N G<br />
I N b R I E F<br />
IDb US$446m Finance for Rabat<br />
the islamic development bank (idb)<br />
has extended development financing<br />
totaling Us$446m to morocco. the<br />
funding includes a Us$150m facility to<br />
finance the development of the Jorf<br />
Lasfar Port, south west of casablanca,<br />
on morocco’s atlantic coast, which will<br />
serve as the country’s main phosphate<br />
derivatives and fertilizers export transport<br />
outlet. the facility was extended to<br />
office chérifien des Phosphates<br />
(ocP), the world's largest exporter of<br />
phosphate rocks and derivative products.<br />
the idb has also extended a<br />
Us$200m financing facility towards the<br />
Upper sebou River Region power project<br />
which is expected to provide 170<br />
extra megawatts of power in the north<br />
of the country and meet the 42 per cent<br />
rise in electricity demand by the year<br />
2020. the project is part of morocco’s<br />
comprehensive development programme<br />
which also envisages increasing<br />
the volume of harnessing surface<br />
water for irrigation purposes and protecting<br />
the regions below the river at the<br />
time of seasonal floods. the multilateral<br />
also provided Us$84.8m for drinking<br />
water projects in eight regions of the<br />
country which is expected to further<br />
increase public access to drinking<br />
water; and contributed Us$11 million<br />
towards developing the rural roads network<br />
and helping eradicate poverty in<br />
those regions. since its inception in<br />
1975, the idb group has approved<br />
Us$5.35bn of development financing<br />
for morocco in various sectors. in addition,<br />
the idb group has also financed<br />
numerous foreign trade operations in<br />
line with its efforts to promote intra-trade<br />
amongst member countries.<br />
bLME UK Realty Tops UK£240m<br />
bank of London and middle east<br />
(bLme) has arranged a 2-year UK£12m<br />
islamic financing for curzon asset<br />
management for the development of<br />
nine apartments in the London borough<br />
of Kensington. this latest transaction<br />
takes bLme’s current property financing<br />
portfolio in the UK to over UK£240m.