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Tue 10 Jun 2014 10:41 AM

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Revealed: Sukuk pipeline - Issue plans around the world

Following are major Islamic bond issues in the global pipeline.

Revealed: Sukuk pipeline - Issue plans around the world
The impact of the global recession has seen worldwide sales of sukuk decline 24 percent this year to $12bn.

Following are major Islamic bond issues in the global pipeline, as compiled by the Thomson Reuters Global Sukuk Index:

AKTIF BANK - A special purpose vehicle of Turkish lender Aktif Yatirim Bankasi said on June 6 it would issue up to 200m lira ($96m) of sukuk. It did not give details.

RAS AL KHAIMAH - The emirate of Ras Al Khaimah, part of the United Arab Emirates, has invited banks to pitch for arranger roles on a potential dollar-denominated sukuk, sources said in early June. A deal isn't expected until at least the third quarter of this year.

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

EMAAR - The malls unit of Dubai's Emaar Properties would hold meetings with fixed income investors from June 8 ahead of a potential benchmark-sized sukuk issue, Emaar said. Benchmark size is traditionally understood to be worth at least $500m.

UEM SUNRISE - Malaysian property developer UEM Sunrise has mandated CIMB and Maybank to lead a potential issuance off a 2bn ringgit ($620m) sukuk programme; bookbuilding is likely to kick off over the next couple of weeks after the borrower and its leads sound out investors, bankers said in early June.

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 1bn 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 SAR500m and SAR1bn ($133-$267m), one of the sources added.

KUVEYT TURK - Kuwait Finance House's Turkish unit Kuveyt Turk applied to Turkish regulatory authorities at end-May to issue up to $500m of sukuk to international investors.

ALHOKAIR - Saudi Arabian retailer Fawaz Abdulaziz Alhokair said it began meeting local investors on May 27 in preparation for issuing its debut, riyal-denominated sukuk; no value or tenor was given.

INDONESIA - Indonesia mandated HSBC, Standard Chartered and CIMB Group to arrange a sovereign sukuk issue of up to $1.5bn, sources aware of the matter told Reuters on May 26.

SAUDI TELECOM - Saudi Telecom Co, the Gulf's largest telecommunications operator by market value, established in late May a SAR5bn-denominated sukuk programme, which will conduct a local private placement.

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.

BANQUE SAUDI FRANSI - Banque Saudi Fransi plans to sell a capital-boosting Islamic bond worth around SAR2bn, banking sources aware of the matter said, with a deal likely to happen by end-June.

TUNISIA - Tunisia will sell its first sovereign Islamic bond in September after months of delays, raising $140m, its finance minister said in mid-May. The ministry had previously planned a $500m 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 $1.5bn, 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 SAR14bn 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 750m ringgit off a 1.5bn ringgit sukuk programme, the company said in early May.

ALBARAKA TURK - Albaraka Turk appointed BNP Paribas, Emirates NBD Capital, Standard Chartered and QInvest to manage an up to $500m, five-year sukuk issue, a company official said in early May. It aims to complete the deal over the next two months before the onset of Ramadan.

BANK MUSCAT - Bank Muscat plans a dual-currency US dollar and rial sukuk issue worth around $300m 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 500m rial ($1.3bn) 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.

PAKISTAN - The government of Pakistan will soon issue sukuk denominated in dollars, Finance Minister Ishaq Dar said at the end of April.

PELABURAN MARA - Malaysia's Pelaburan MARA, the investment arm of Majlis Amanah Rakyat, plans to issue sukuk worth up to 1bn 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 250m ringgit with an Islamic bond programme.

ENGRO CORP - Pakistani conglomerate Engro Corp, a former unit of Exxon Mobil Corp, plans to raise as much as 4bn rupees ($40.9m) through listed sukuk, Pakistan Credit Rating Agency said in late April.

HONG KONG - The Hong Kong government plans to issue between $500m and $1bn worth of Islamic bonds "after the summer holidays", a spokesperson for its central bank told Reuters; the sukuk would have a maturity of five years or below and use an ijara structure.

GULF FINANCE HOUSE - Bahrain-based Gulf Finance House said on April 15 it had obtained shareholder approval to issue sukuk or arrange new debt facilities worth up to $500m to restructure liabilities, develop projects and fund possible acquisitions; no time frame was given.

SABAH CREDIT - Malaysia's Sabah Credit Corp, a unit of the Sabah state government, will raise up to 1.5bn ringgit in musharaka sukuk, RAM Ratings said on April 7.

BUMI ARMADA - Malaysian oil field services firm Bumi Armada said in March it planned to raise up to 1.5bn ringgit in Islamic bonds under the murabaha format, after it received approval from the securities commission.

LUXEMBOURG - A proposed bill in Luxembourg would allow securitisation of three properties for a sovereign sukuk issue worth 200m euros ($275m).

OMAN - Omani central bank executive president Hamood Sangour Al Zadjali said in March that the government would probably make its first sovereign sukuk issue at the end of this year.

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 3.5bn ringgit with Islamic bonds in Malaysia, RAM Ratings said in March.

SOUTH AFRICA - The South African Treasury said in February that it was confident of issuing its first sukuk in the coming few months.

DANAINFRA- Malaysia's DanaInfra Nasional, created by the finance ministry to raise funds for the country's largest infrastructure project, may issue and list on the stock exchange this year as many as two Islamic bonds worth 100 million ringgit each, an official with the bourse said.

TURKIYE FINANS - Turkiye Finans in February received approval from Turkey's Capital Markets Board to establish a 3bn ringgit sukuk programme in Malaysia.

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

BANK ASYA - Turkish Islamic lender Bank Asya said in January that it was planning sukuk issues worth $500m and 800m lira this year.

BRITAIN - The finance ministry said in January it had appointed HSBC and law firm Linklaters as advisors to assist in its planned debut issuance of sukuk; Prime Minister David Cameron said last year that the government was working on a plan to issue around 200m pounds ($330m).

SENEGAL - The country's 2014 issuance programme includes its first $200m sovereign sukuk planned for April, officials said in January.

ACWA - Last December, Saudi Arabia-based water and power project developer ACWA Power said it had raised a 1.77bn 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.

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