#Sukuk Pipeline* Issue plans around the world

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(Thurs 04/09/14 20:45:53)

DUBAI (Sept 04): The following are major Islamic bond issues in the global pipeline.

The Thomson Reuters Global Sukuk Index is at 114.95557 points, up from 114.88023 at the end of last month and 109.78969 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 112.73348 points, against 112.59309 at end-August and 107.28036 at the end of 2013.

Goldman Sachs: Goldman Sachs will meet investors in Qatar on Sept. 10 and the United Arab Emirates on the following day to discuss its plan to issue at least $500 million worth of Islamic bonds, a document from lead managers showed.

Oman: The government of Oman is expected to issue 200 million rials ($520 million) of sukuk early next year, its first issue of Islamic bonds, Jamil Al Jaroudi, chief executive of Bank Nizwa, told Reuters.

Pakistan: Pakistan's Ministry of Finance selected Citigroup, Deutsche Bank, Dubai Islamic Bank and Standard Chartered as bookrunners for a U.S. dollar sukuk issue, a ministry official said; the tenor of the bond and the format would be decided as soon as the week of Sept. 8.

Sharjah: The emirate of Sharjah will arrange investor meetings in the weeks of Sept. 1 and 8 in Asia, the Middle East and Europe ahead of a potential debut issue of sovereign sukuk, the director of its debt management office told Reuters.

South Africa: South Africa will begin marketing its debut sovereign sukuk on Sept. 8, bankers said; the roadshow will cover London, Dubai, Abu Dhabi, Riyadh and Qatar. The issue is expected to be at least $500 million and the tenor, probably five years.

Hong Kong: Hong Kong's government will hold investor meetings in the week starting Sept. 1 for its maiden Islamic bond issue, a spokeswoman for the Hong Kong Monetary Authority said. Officials previously said issuance size was expected to be about US$500 million to US$1 billion.

Dogus Group: Turkish conglomerate Dogus Group has received regulatory approval to raise $370 million by issuing the country's first corporate sukuk, the Capital Markets Board said in late August. No time frame was given.

CIMB Islamic: CIMB Islamic, the sharia-compliant unit of Malaysia's second largest bank, is preparing an Islamic bond programme to raise up to 5 billion ringgit ($1.58 billion), ratings agency MARC said in late August.

Sunway: Malaysian property developer Sunway will raise up to 2 billion ringgit ($633 million) by issuing sukuk mudharaba, it said in August; short-term commercial paper under the programme will have maturities of between a month and a year, while medium-term notes will have maturities of one to seven years. Sunway will make its first issuance within two years.

Malaysia Airports: Malaysia Airports Holdings hired four banks for a subordinated perpetual sukuk musharaka to raise 1 billion ringgit; investor meetings would be held on Aug. 25.

DIFC Investments: DIFC Investments, the investment arm of the firm running Dubai's financial free zone, is planning to issue sukuk, bankers said; it has appointed banks and could come to market as early as September.

Ras al-Khaimah: The emirate of Ras al-Khaimah, part of the UAE, invited banks to pitch for arranger roles on a potential dollar-denominated sukuk, sources said in early June. However, bankers said in August that Ras al-Khaimah had sent out requests for proposals for a syndicated loan, casting doubt on whether the planned sukuk issue would now go ahead.

Gulf Finance House: Bahrain-based Gulf Finance House said in mid-August it planned a $200 million sukuk issue to repay outstanding debt and for acquisitions. The deal would take place in coming months.

Luxembourg: Luxembourg appointed HSBC and BNP Paribas as co-lead arrangers of its first issue of sovereign Islamic bonds, and is organising a roadshow for investors at the end of September, the finance ministry said. The country is expected to issue 200 million euros ($268 million) of sukuk.

Turkey: Turkey's Treasury said it plans to issue lira-denominated sukuk worth 1.5 billion lira ($705 million) in October.

Adira Dinamika: Indonesia's PT Adira Dinamika Multi Finance plans to raise at least 500 billion rupiah ($42 million) with ringgit-denominated sukuk in Malaysia by the end of the year, bankers said.

K-Electric: Karachi-based utility K-Electric plans to raise as much as 22 billion rupees ($223 million) through sukuk to refinance existing debt, the company said in late June.

Libya: Libya's central bank is proposing to issue Islamic bonds to help fund the country's budget and offset a loss of oil revenues that could create a deficit of $25 billion this year, a bank official said in June.

Kenya: Kenya plans to issue another international bond and may consider a debut sukuk issue, the finance minister said in late June, after a successful debut $2 billion eurobond closed.

Bank Muamalat: Malaysia's Bank Muamalat, a unit of sovereign fund Khazanah and auto-to-property conglomerate DRB-Hicom Bhd, will raise up to 2 billion ringgit with Islamic bonds, credit agency Malaysian Rating Corp said in late June.

Bahri: National Shipping Co of Saudi Arabia (Bahri) plans to arrange long-term sharia-compliant financing in the next year to replace a bridge loan backing its $1.3 billion acquisition of Saudi Aramco's marine unit, Bahri said in June. Banking sources prebiously told Reuters Bahri was looking at a potential debut sukuk issue to replace the bridge loan.

Societe Generale: Societe Generale completed the roadshow for the first issue in its 1 billion ringgit multi-currency sukuk programme in Malaysia, and would decide on the size in days, the bank said on June 18. In early July, banking sources said Societe Generale was still seeking a window to launch.

IFC: The International Finance Corp, the World Bank's lender to the private sector, is considering a return to the Islamic bond market, an IFC official said. A sukuk issue is still in the early stages of discussion but would likely be in the fiscal year starting in July 2014.

Jordan: Jordan's government is studying a proposal to issue its first Islamic bond as early as next year, possibly raising over $1 billion in multiple currencies, but a preference for concessionary loans from aid donor countries could hinder the plan, government sources said.

Malaysian Resources Corp: Malaysian Resources Corp, a local construction firm, said on June 12 it would issue Islamic bonds to raise up to 680 million ringgit for land acquisitions and working capital.

Aktif Bank: A special purpose vehicle of Turkish lender Aktif Yatirim Bankasi [CALIKB.UL} said on June 6 it would issue up to 200 million lira ($96 million) of sukuk. It did not give details.

BOTM: Bank of Tokyo-Mitsubishi UFJ said on June 5 it was seeking to raise as much as $500 million through a multi-currency Islamic bond programme in Malaysia, becoming the first Japanese bank to use sukuk for fund-raising.

Bangladesh: The central bank is seeking to amend rules on its existing sukuk programme to broaden its use and allow for sovereign issuance by the government, a central bank spokesman said in June.

Bank Islam: Malaysia's Bank Islam plans to raise 1 billion ringgit by selling Islamic bonds to fund organic growth as well as a potential acquisition in Indonesia, two people involved told Reuters in early June. A 300 million ringgit Basel-III compliant Tier 2 sukuk is awaiting approval from the central bank and the Securities Commission for issue in July.

Al Othaim: Saudi Arabia's Al Othaim Real Estate and Investment Co, owner of five shopping malls in the kingdom, plans to issue its debut local currency sukuk as early as in June, sources aware of the matter said at the start of the month. The transaction is likely to be worth between 500 million and 1 billion riyals ($133-267 million), one of the sources added.

Al Baraka: Bahrain-based Al Baraka Banking Group said in mid-May that it was considering issuing subordinated Islamic bonds through its South African and Pakistani units to boost their regulatory capital.

Tunisia: Tunisia will sell its first sovereign Islamic bond in September after months of delays, raising $140 million, its finance minister said in mid-May. The ministry had previously planned a $500 million sukuk and gave no reason for the reduction in size.

IDB: The Islamic Development Bank plans to issue a benchmark-sized sukuk around May next year, close in size to a $1.5 billion, five-year sukuk which it issued in February this year, president Ahmad Mohamed Ali said.

In February, a senior executive said the IDB also aimed to issue its first short-term sukuk this year.

Jeddah Economic Co: Saudi Arabia's Jeddah Economic Co said in mid-May it was in talks with local banks to raise funds for the 14 billion riyal first phase of its Kingdom City project. For part of the money, "we are looking at the bonds and sukuk market but this will need a structure in place, which we are working on," chief executive Mounib Hammoud said.

IOI Properties: Kuala Lumpur-listed IOI Properties is considering an offer of Islamic bonds; it is looking to raise up to 750 million ringgit off a 1.5 billion ringgit sukuk programme, the company said in early May.

Bank Muscat: Bank Muscat plans a dual-currency U.S. dollar and rial sukuk issue worth around $300 million that would be the first sukuk sale by an Omani bank. The issue, which could carry tenors of three to five years, would be part of a 500 million rial ($1.3 billion) sukuk programme which shareholders approved in March, Sulaiman Al Harthy, group general manager of Meethaq, Bank Muscat's Islamic operation, told Reuters in early May.

Pelaburan MARA: Malaysia's Pelaburan MARA, the investment arm of Majlis Amanah Rakyat, plans to issue sukuk worth up to 1 billion ringgit this year or next to finance its investments in the oil and gas and technology sectors, group chief executive Nazim Rahman was quoted as saying in April by The Edge Financial Daily.

Hua Yang: Malaysian property development firm Hua Yang Bhd said on April 29 it had won approval from the securities commission to raise up to 250 million ringgit with an Islamic bond programme.

First Gulf Bank: Abu Dhabi's First Gulf Bank, the third-largest bank by assets in the United Arab Emirates, plans to raise up to 3.5 billion ringgit with Islamic bonds in Malaysia, RAM Ratings said in March.

Kiler REIT: Turkish real estate investment trust Kiler GYO plans to issue a five-year sukuk worth at least $100 million in the second half of this year, parent company Kiler Holding's chief financial Officer Kaan Aytogu said in February.

ACWA: Last December, Saudi Arabia-based water and power project developer ACWA Power said it had raised a 1.77 billion riyal Islamic loan from four local banks to help finance investments including acquisitions and act as a bridge to a sukuk issue in 2014.

ADB: The Asian Development Bank said in December that it was considering an Islamic bond issue as early as in 2014.