(Corrects to show Bahrain isn’t a member of the International Islamic Liquidity Management Corp. in fourth paragraph.)
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 $21.8 billion in 2011, from $14.3 billion a year earlier, according to data compiled by Bloomberg.
MAJID AL FUTTAIM HOLDING LLC: The Dubai-based operator of Carrefour SA stores in the Middle East plans to raise about $500 million from the sale of five-year Shariah-compliant bonds to boost cash reserves, Daniele Vecchi, its treasury manager, said in a telephone interview. A decision on when to proceed with an offering depends on market conditions, with U.K.-based banks HSBC Holdings Plc and Standard Chartered Plc arranging the sale, he said.
PLUS Malaysia Bhd: The toll-road operator plans to sell as much as 33 billion ringgit ($10.4 billion) of Islamic bonds to fund the buyout of the nation’s biggest highway operator, Izzaddin Idris, chief executive officer of UEM Group Bhd., told reporters. State-owned UEM Group and the Employees Provident Fund, the Southeast Asian country’s largest pension fund, are the shareholders of PLUS.
(Added: Nov. 16. PLUS MK )
INTERNATIONAL ISLAMIC LIQUIDITY MANAGEMENT CORP.: The global institution set up by central banks from countries including Malaysia and Qatar postponed the industry’s first global issuance of Shariah-compliant dollar bills to next year as the multilateral agency awaits a credit rating. “It has been a long process to get a rating, to get quality underlying assets and to obtain all the parameters for the issuance,” Malaysia’s central bank Governor Zeti Akhtar Aziz, who is also chairman of the body, told reporters in Kuala Lumpur. “We expect the first issuance to be in the next six months.”
AL HILAL BANK: The state-owned lender in the United Arab Emirates hired HSBC Holdings Plc, Standard Chartered Plc and National Bank of Abu Dhabi to arrange a sale of Islamic bonds, a person familiar with the deal said. The offering is likely to happen in the first quarter of next year, the person said, declining to be identified because the details of the transaction are confidential.
DANA GAS PJSC (DANA): The Sharjah, U.A.E.-based company said it’s working with lenders on refinancing Islamic debt. “Dana Gas is collaborating with a number of international banks for collective advice on financial strategy, capital structure, refinancing the company’s $1 billion sukuk, and for developing further the group’s plans to list its upstream business on the London Stock Exchange,” it said in a statement to the Abu Dhabi bourse.
(Added Nov. 14. News: DANA UH )
IRAN: The central bank approved the sale of about $5 billion in Islamic bonds by the Oil Ministry to help finance the development of the South Pars gas field, according to a report on the ministry’s news website. The ministry will issue the sukuk in Iranian rials by the end of the current Iranian calendar, which ends on March 19, 2012, the Shana website reported, citing the National Iranian Oil Co.‘s Managing Director Ahmad Qalebani.
SCOMI GROUP BHD. (SGB): The Malaysian engineering group plans to raise $100 million selling Islamic bonds next month to revamp its debt, Chief Executive Officer Shah Hakim Zain said.
(Added Nov. 13. News: SGB MK )
KOREA DEVELOPMENT BANK: South Korea’s state-owned policy bank started a program to sell as much as 3.5 billion ringgit of Islamic and non-Shariah-compliant bonds in Malaysia, RAM Rating Services said in a report on Nov. 4.
DRB-Hicom Bhd. (DRB): The Malaysian auto, construction and property group plans to sell as much as 1.8 billion ringgit of Islamic medium-term notes, it said in a statement to the Kuala Lumpur stock exchange. The company has hired Maybank Investment Bank Bhd. as lead manager for the 15-year sukuk program, it said. The money raised will be used to fund working capital and refinance debt, it said.
POH KONG HOLDINGS BHD. (PKH): The Malaysian jewelry maker said it has been given approval by the Securities Commission to sell 150 million ringgit 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.
ANIH BHD: The toll-road concessionaire has hired CIMB Investment Bank Bhd. and Maybank Investment Bank 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 concessions owned by MTD Prime Bhd. and Metramac Corp., according to an e-mailed memorandum.
LANDASAN RIA SDN: The 51-percent owned company of the Malaysian Armed Forces Fund Board is planning to sell 545 million ringgit 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, Hong Leong Investment Bank Bhd. and Affin Investment Bank Bhd. to help arrange the sale, said the person.
SAUDI ARABIA: The Persian Gulf country may finance Jeddah’s King Abdulaziz International Airport expansion project by selling sukuk, Al Eqtisadiah reported, citing Finance Minister Ibrahim al-Assaf.
ALBARAKA TURK KATILIM BANKASI AS (ALBRK): 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.
ASYA KATILIM BANKASI AS (ASYAB): 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.
GOLDMAN SACHS GROUP INC. (GS) 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 )
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 )
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.
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. The notes will be backed by state bond-guarantee agency Danajamin and have been rated AAA, RAM said.
BARWA BANK: The unit of Barwa Real Estate Co. (BRES), Qatar’s biggest property developer by assets, plans to sell Islamic bonds in 2013 after it gets a credit rating, Chief Executive Officer Steve Troop said.
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 and France’s Total SA.
ISLAMIC BANK OF THAILAND: The state-owned lender plans to raise 5 billion baht ($163 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.
ABU DHABI NATIONAL ENERGY CO. (TAQA): 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.
TAMWEEL PJSC (TAMWEEL): 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.
QATAR INTERNATIONAL ISLAMIC BANK (QIIK): 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.
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.
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.
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 ($89 million) of local-currency Islamic bonds in 2012, Hendiarto said.
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.
AL BARAKA BANK EGYPT ESC: The Cairo-based Islamic unit of Albaraka Banking Group (BARKA) BSC expects to raise 1 billion Egyptian pounds ($167 million) from the sale of 10-year Islamic bonds, Manama-based CEO Adnan Ahmed Yousif said in an interview.
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.
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.
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.
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.
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.
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.
SAUDI ELECTRICITY CO. (SECO): 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.
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.
MASRAF AL RAYAN (MARK): 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.
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.
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.
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.
To contact the reporters on this story: Elffie Chew in Kuala Lumpur at
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