OCTOBERnews briefs - Islamic Finance News

islamicfinancenews.com

OCTOBERnews briefs - Islamic Finance News

www.islamicfinancenews.com

OCTOBER news briefs

National Commercial Bank launched the Al Ahli GCC Trading

Equity Fund, an open-ended Saudi riyal-denominated fund with

a minimum subscription of US$1,332.

UAE commercial mortgage lender RAKBank applied for a licence

to set up an Islamic finance company.

RHB Unit Trust Management declared an income distribution of

2.5 cents per unit for investors in its RHB Islamic Bond Fund.

Alliance Unit Trust Management launched its first Shariah compliant

money market fund, the Alliance Islamic Money Market

Fund.

It was revealed that Bank Islam Malaysia would report a

US$133 million loss, the first time it had gone into the red in its

22-year history. The bank was expected to announce losses at

the bank level of US$133 million and make a provision of

US$199.46 million for bad debts.

Shamil Bank of Bahrain mandated BNP Paribas, Boubyan Bank

and Gulf International Bank to lead arrange a US$100 million

five-year amortizing Murabahah syndicated facility.

Pearl Real Estate Development Company entered into an

agreement with Shamil Bank to provide Islamic home financing

to buyers in the US$252.55 million Abraj Al Lulu development.

Kuwait-based Islamic investment firm The Investment Dar

Company announced plans to acquire a 30% stake in Bahrain

Islamic Bank for US$84.12 million.

The Qatari government revealed it was considering using Islamic

debt as part of its plans to raise US$110 billion in project

financing by 2010 to fund a massive overhaul of infrastructure.

Bank Pembangunan Malaysia Group stated that it expected to

finalize the structure of a proposed bond issuance, including

Islamic loans, by year-end to raise US$2.39 billion.

ABC Islamic Bank closed the deal for The Investment Dar Company’s

Al Musharakah Sukuk. Because of significant oversubscription,

the Sukuk was increased from US$50 million to

US$100 million.

Stockbroking and financial services firm K&N Kenanga said it

hoped to arrange at least two more Islamic debt securities by

the end of the year worth between US$132.72 million and

US$212.68 million.

South Africa said that it would consider Islamic bonds in its

business expansion plan with GCC countries.

The Bahrain Monetary Agency granted a licence for the establishment

of a new Islamic full commercial bank, Al Salam Bank.

The size of Public Mutual’s Public Islamic Bond Fund was increased

from 300 million to 800 million units after it obtained

Securities Commission approval.

Bahrain’s Albaraka Banking Group prepared to list its shares

on the Bahrain Stock Exchange through an IPO.

The Islamic Institution for Investment Insurance and Exports

Credit signed a MoU for co-operation with the Malaysian Industrial

Development Commission within the framework of cooperation

between the Islamic Development Bank and Bank

Negara Malaysia.

The Saudi Arabian Monetary Agency announced it was prepared

to offer its services to India in developing Islamic banking

products.

Malaysia’s UEM World revealed plans to issue up to US$160

million Islamic CPs/MTNs to raise money to refinance the outstanding

bridging loan of US$66.48 million from CIMB.

The Dubai International Financial Exchange was launched.

TAIB Bank announced that its Shariah compliant TAIB Islamic

GCC Index Fund gave a return of more than 100% to investors

in less than one year.

Saudi British Bank and Hamad A Al-Essa & Sons Co entered

into an agreement to offer customers at Al-Essa showrooms

Amanah consumer finance products.

Bristol & West, with the Arab Banking Corporation, announced

it would offer Islamic buy-to-let mortgages. The Alburaq range

of products was also available through Lloyds TSB.

The Monetary Authority of Singapore announced that there

would be no separate banking regulatory framework for Islamic

financing in the country. The Central Bank also announced that

all banks would be allowed to offer Murabahah.

DVB Bank stated that demand for Shariah compliant private

equity funds, particularly in the shipping sector, was on the

rise.

Maybank introduced Shariah compliant share trading and margin

financing facility Maybank invest-i, which would be offered

in the form of the Islamic Cash Line facility.

Dubai Bank confirmed its acquisition of an 18.75% strategic

stake in BankIslami Pakistan, the first new bank to receive a

licence from the State Bank of Pakistan.

A special committee of the Reserve Bank of India was studying

offering Shariah compliant financial products.

State Bank of Pakistan issued a licence to the Bank of Khyber

allowing it to start Islamic banking operations in Naushehra.

RHB Islamic Bank appointed two foreign Islamic financial

experts to its Shariah Committee.

The Malaysian Government said Islamic banking was on track

to attain the target of representing 20% of the country’s financial

market by 2010.

The Turkish Government said it would propose a law to parliament

allowing the country to issue Islamic bonds.

Continued...

Page 40

Islamic Finance News Guide 2006


OCTOBER news briefs (continued…)

www.islamicfinancenews.com

Abu Dhabi Investment House launched its maiden investment

product – the US$75 million Al Arabi Private Equity Fund.

Bahrain Islamic Bank unveiled its Ijarah Muntahia Betamleek

home finance product, providing mortgage finance for up to

US$530,000 with a repayment period of up to 20 years.

Islamic investment company Tejoori revealed plans to list on

the London Stock Exchange’s Alternative Investment Market by

the end of 2005.

Dubai Islamic Bank announced it was looking to expand its

business in Libya.

Tamweel and Sharjah-based property developer Ali Moosa &

Sons Group announced their joint venture to finance properties

in Sharjah.

Bank Negara Malaysia announced Malaysia would establish an

international centre for education in Islamic finance.

Amlak Finance tied up with Abraj Property Developers to offer

home finance to customers at the Timeplace project in the

prestigious Dubai Marina.

Emirates Islamic Bank announced that its Emirates Real Estate

Fund registered a strong capital growth of 2% since its launch.

AMMB Holdings said it expected its Islamic banking subsidiary

AmIslamic Bank to be up and running by April 2006.

The final declaration of the inaugural World Islamic Economic

Forum recommended that the Islamic Development Bank set

up the Islamic Trade Finance Corporation.

UAE financial investment company Shuaa Capital launched two

new funds: the Kuwait Gateway Fund and the MAHA High Income

Fund.

Alliance Unit Trust Management launched its first Shariah compliant

money market fund, the Alliance Islamic Money Market

Fund.

Kuwait’s National Industries Company for Building Materials

announced it would issue Islamic bonds worth US$60 million to

expand its construction activities and products.

Palestine’s Arab Islamic Bank net profits soared by 228% over

2004 net profits to reach US$2.2 million.

Malaysia’s AmBank Group, which was investigating launching a

fully fledged Islamic banking service in April 2006, announced

it was aiming for regional expansion of the service.

The issue of Arcapita Bank’s five-year Murabahah-backed Sukuk

was increased from US$200 million and closed at US$210

million.

Al Safa Islamic Banking–Commercialbank revealed it would

launch its new Islamic Ijarah financing soon, following the goahead

from Al Safa’s Shariah Supervisory Board.

Qatar Islamic Bank obtained a licence to operate an Islamic

Asian finance bank.

Six investors and brokers charged with conducting bogus

trades in Dubai Islamic Bank shares on the Dubai Financial

Market began their trial.

Lebanon-based Fransabank said it would take a stake in new

Islamic investment bank Al Mal Bank in Sudan, which would

start operations early in 2006.

United Overseas Bank (Malaysia) said it was studying the possibility

of venturing into Islamic banking in Malaysia.

Al Ahlia Gulf Holding Company said it was arranging a US$100

million Musharakah Sukuk issue to finance the Lagoon City

residential and commercial real estate development project in

Kuwait.

Qatar’s first ever Islamic mutual fund, the Al-Basha’er Equity

Fund, was launched by Gulf Finance House, Kuwait Finance

and Investment Company and Qatar Islamic Bank with a targeted

capital of US$400 million.

Industrial Development Bank of Turkey’s maiden one-year syndicated

Murabahah facility closed at US$50 million.

Abu Dhabi Islamic Bank recorded a 207% increase in net profit

to US$77.2 million for the third quarter of 2005. Revenues

from Murabahah, Mudarabah, Istisnah and Ijarah transactions

constituted 93% of total revenue.

The Investment Dar Company finalized the acquisition of 305

of the shares of Bahrain Islamic Bank for US$85 million, giving

it a 30% stake in the company.

The issuance by Malaysian national mortgage corporation

Cagamas of a US$132.488 million Cagamas Bithaman Ajil

Islamic Securities was 2.14 times oversubscribed.

AMLAK Finance saw an increase in net profits of 340% to

US$35.94 million for the first nine months of 2005.

Dubai-based investment company Tejoori was launched with

hopes to raise US$100 million with a minimum launch capital

of US$65 million via private placements.

BIMB Holdings, Bank Islam Malaysia’s parent company,

received approval to start talks with Bahrain-based Unicorn

Investment Bank over sale of a 20% stake in BIMB.

Public Mutual announced it had sold over 95% of the 1 billion

units of its Public Islamic Balanced Fund in the 21-day initial

offer period and intended to apply to the Securities Commission

to increase the fund size.

Bahrain Islamic Bank launched its Ijarah Muntahia Betamleek

Islamic mortgage product, with a repayment period of up to 20

years.

Qatar International Islamic Bank recorded a 380% leap in profits

to US$93.7 million for the first nine months of 2005.

MOVES

Bahrain Islamic Bank appointed Faisal Alshowaikh as Director

of Corporate & Institutional Banking.

HSBC Bank Middle East appointed David E King as Managing

Director of Business Development.

Citigroup appointed Akbar Shah as the Head of Global Wealth

Management for the Middle East.

European Islamic Bank appointed Tony Ellingham as Finance

Director.

Islamic Finance News Guide 2006

Page 41

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