continued... - Islamic Finance News

DECEMBER news briefs (continued...)
Emirates Aluminium Company planned to sell up to US$2 billion of
bonds in 2008 to help fi nance construction. The bonds, a mixture of
long and short sale, will most likely be Islamic to boost local investor
demand. Citigroup, Goldman Sachs and National Bank of Abu Dhabi
were mandated as managers for the sale.
The Dubai International Financial Exchange listed its fi rst non-dollar
security in the form of Jebel Ali Free Zone’s AED7.5 billion (US$2.04
billion) local currency Sukuk. This was in line with the bourse’s
attempt to broaden the range of choices for investors.
Shamil Bank launched its US$90 million Shamil Bosphorus
Mudarabah, investing in Shariah compliant real estate developments
in Turkey. The bank will subscribed up to 10% of the commitment as
a vote of confi dence.
Meezan Bank and Eden Builders signed a PKR2.5 billion (US$40.82
million) Islamic fi nancing facility mandate with a tenure of 5.5
years.
Barclays launched the UK’s fi rst Shariah compliant exchange-traded
fund. The bank also formed a panel of Islamic scholars to supervise
its Islamic products.
The Bank of London and The Middle East provided US$24 million
in Islamic fi nancing for two operating lease transactions, both with
US Fortune 500 companies. BLME’s fi nancing aimed to fund energy
exploration and surface mining equipment on lease terms of fi ve and
seven years.
State Bank of Pakistan governor Dr Shamshad Akhtar affi rmed that
the prospects for growth in Islamic fi nance were promising but rested
on building an effective system for the industry.
Bahrain-based Unicorn Investment Bank received the nod on to
convert its Kuala Lumpur offi ce into a full-fl edged Islamic bank.
Central Bank of Bahrain granted an investment fi rm category 2
license to the International Investment Bank to establish Investcorp
Gulf Investments. The new fi rm was established to manage
Investcorp’s Gulf-focused funds.
AB Bank signed a contract with Millennium Information Solution
for the implementation of its Shariah-based online Islamic banking
solution, “Ababil”.
The Islamic debt fi nancing of US$205 million for the Hajj Terminal
at the King Abdulaziz International Airport in Jeddah, Saudi Arabia
was concluded.
Dubai Islamic Bank, Standard Chartered Bank and WestLB arranged
a US$263 million, 10-year Islamic project fi nance facility to fi nance
DP World’s 30-year new container port concession at Doraleh,
Djibouti. The World Bank’s Multilateral Investment Guarantee
Agency provided a tranche of political risk insurance.
Emirates Islamic Bank clarifi ed that it was not the mandated lead
arranger for government-owned company Limitless’ US$1.2 billion
two-year syndication.
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Islamic Finance news Guide 2008
Sui Southern Gas Company signed an agreement with BankIslami
Pakistan and Pak Brunei Investment Company to fund its capital
expenditure program budgeted at PKR10 billion (US$163.58 million)
for 2007-08.
Norton Rose secured an alliance with Saudi Arabian practice
Abdulaziz Al-Assaf in a move set to boost the law fi rm’s profi le in the
Middle East.
The Singapore government released a mandate allowing foreign
fi rms to practice Singaporean law, following recommendations made
by a review committee of its local legal market.
Tradewinds Plantation group inked an agreement with OCBC Bank
(Malaysia) to issue its fi rst Islamic securities of up to RM400 million
(US$120.72 million).
Barwa Real Estate revealed that it was seeking a credit rating and
looking to sell at least US$800 million in Sukuk and global depository
receipts in 2008 to fund expansion.
Indian corporations had expressed great interest to raise funds in
Malaysia, Bank Negara Malaysia’s assistant governor Muhammad
Ibrahim affi rmed.
The Chartered Institute of Management Accountants launched the
fi rst global Islamic fi nance qualifi cation to be offered by a professional
accountancy body.
Industry observers cited the lack of scholars as a hindrance to British
efforts to become an Islamic banking hub.
The Center for Islamic Banking, Finance and Management, under
the purview of Universiti Brunei Darussalam, held a three-day
workshop on Shariah issues in Islamic fi nance.
The Ras Al Khaimah Investment Authority listed a US$325 million
Sukuk on the Dubai International Financial Exchange, taking the
exchange’s total listed value of Sukuk to US$14.11 billion — the
largest value of any exchange in the world.
Dutch mayor Job Cohen revealed that there has been collective
sentiment to urge fi nance minister Wouter Bos to allow banks to
offer Islamic mortgages.
DP World revealed investment commitments exceeding US$4 billion.
The company, however, had not decided on a public sale of shares
to support growth.
Mawarid Finance signed a partnership agreement with real estate
developer ETA Star, to provide fi nancing to purchasers of units in the
Centrium project.
The Qatar Investment Authority increased its share by almost 24%,
in the London Stock Exchange, resulting in a controlling stake of
nearly 52% by the Gulf state and Dubai.
Standard & Poor’s announced the extension of its fund management
ratings service to the Gulf.
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