SUKUK PIPELINE – Issue plans around the world

Following are major Islamic bond issues in the global pipeline.

The Thomson Reuters Global Sukuk Index is at 117.97362 points, down from 118.24280 at the end of last month but up from 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 116.21851 points against 116.64293 at end-October and 113.69014 at end-2014.

HASCOL PETROLEUM – Pakistan’s Hascol Petroleum is proposing to issue six-year sukuk for 2 billion rupees ($19.0 million), including a greenshoe option of 500 million rupees, JCR-VIS Credit Rating Co said in early November.

AXIATA – Axiata Group, Malaysia’s biggest mobile telephone operator by market value, held investor meetings in the last week of October for a potential offer of Reg S U.S. dollar sukuk.

TUNISIA – The Tunisian government expects in the first half of 2016 to make its first sukuk issue, worth 1 billion dinars ($505 million), Finance Minister Slim Chaker told Reuters in late October.

ALBARAKA TURK – Albaraka Turk has picked seven arrangers for a potential dollar-denominated sukuk issue to bolster its supplementary capital, sources familiar with the matter told Reuters in mid-October.

SOUTH AFRICA – South Africa would like to issue more sukuk so there is enough liquidity to build an investment curve, Director-General of the Treasury Lungisa Fuzile told reporters in mid-October without giving details.

MALAYSIA BUILDING SOCIETY – Malaysia Building Society is sounding out the market on its fourth offer of structured sukuk to raise up to 900 million ringgit; lead RHB Investment Bank is gathering indications of interest on various tranches, though demand for non-benchmark tenors is heard to be weak at the moment, bankers said in early October.

AYALA LAND – Ayala Land of the Philippines is considering raising funds through sukuk for its investments in Malaysia, finance officer Jaime Ysmael was quoted as saying in early October by

COUNTRY GARDEN – Chinese property developer Country Garden Holdings will debut in Malaysia’s debt markets with its first sukuk; the maiden issue will come off a 1.5 billion ringgit Islamic medium-term note programme, on which CIMB Investment Bank is lead arranger, bankers said in early October.

PAKISTAN – The Pakistani Finance Ministry plans to issue fresh domestic sukuk on the maturity of an outstanding issue on Nov. 21, The News quoted sources as saying in early October; bankers expect the issue to be about 300 billion rupees.

Pakistan’s government plans an international sukuk issue, likely to be worth $500 million, next year, possibly in the April-June quarter, finance secretary Waqar Masood Khan told Reuters in late September.

KUVEYT TURK – Turkish Islamic bank Kuveyt Turk has picked seven banks to arrange a potential U.S. dollar-denominated sukuk issue to bolster its supplementary or Tier 2 capital, sources familiar with the matter told Reuters in late September.

INDONESIA – The Indonesian government plans to offer project-based sukuk worth 13.7 trillion rupiah ($953 million) next year, nearly double this year’s level, Antara news agency quoted the National Development Planning Agency’s deputy chief for development funding, Wismana Adi Suryabrata, as saying in mid-September.

Noor Bank said in late August it planned to help arrange a sukuk sale or private placement on behalf of the Indonesian government; officials declined to specify the amount of the sukuk but said it would be U.S. dollar- based and include other underwriters.

HNA GROUP – The financing arm of China’s HNA Group, owner of Hainan Airlines, plans to make an offshore sukuk issue of benchmark size before year-end, Andrew Kinal, managing director of Geneva-based Shariah Advisory Group, which is advising on the deal, said in early September.

EGYPT – Egypt hopes to issue its first sovereign sukuk by the first quarter of 2016, Samy Khallaf, an adviser to the finance minister, said in early September.

TIME DOTCOM – Malaysia’s TIME dotCom plans a sukuk offer off its newly established 1 billion ringgit medium-term note programme. CIMB Investment Bank and Hong Leong Islamic Bank were appointed joint lead managers, bankers said in early September.

PRASARANA – State-owned public transport operator Prasarana Malaysia said in early September it would fund Malaysia’s light rail transit three project via sukuk, with the coupon to be decided later.

TURKIYE FINANS – Turkiye Finans Katilim Bankasih has applied to raise up to 1.5 billion lira ($513 million) via sukuk through its wholly owned unit TF Varlik Kiralama, Turkey’s Capital Markets Board said in August.

SAUDI ELECTRICITY – Saudi Electricity Co received approval from its executive committee to set up a sukuk programme worth as much as $1.5 billion and negotiate for loan financing worth $2.3 billion, the Gulf’s largest utility said in late August.

TENAGA NASIONAL – Malaysia’s Tenaga Nasional Bhd said in late August it would raise up to 10 billion ringgit with sukuk to build and operate a power plant project that it took over from state fund 1MDB.

ALUMINIUM BAHRAIN – Aluminium Bahrain is seeking a credit rating ahead of talks with banks about fund-raising for its $3.5 billion Line 6 expansion, a company official told Reuters in late August. A banking source said a bond or sukuk could be issued before end-2015 or early in 2016.

ABU DHABI ISLAMIC BANK – Abu Dhabi Islamic Bank has mandated Citigroup, HSBC, JP Morgan and Morgan Stanley for an additional Tier 1 capital sukuk issue, sources told IFR in late August.

PHILIPPINES – Sukuk are a funding option for the Philippine government, National Treasurer Roberto Tan told Reuters in mid-August, adding that he hoped Congress would pass legislation to allow such issuance.

BEST LEASE – Mohamed Frad, board member at Tunis-based Best Lease, a commercial leasing firm, told Reuters in early August that the company aimed to raise up to 30 million dinars via sukuk to finance its growth after finance ministry rules covering issuance of corporate sukuk were published, which was expected within months. Tunisia’s Banque Zitouna and El Wifack Leasing were also considering sukuk issues.

KUWAIT – Kuwait is preparing legislation to facilitate issues of sukuk by the government as it assesses options to finance a big budget deficit caused by low oil prices, Finance Minister Anas al-Saleh said in late July. He did not specify when any issues might occur.

IVORY COAST – Ivory Coast will launch the first tranche of a local currency sukuk programme this year, selling 150 billion CFA francs ($252 million), a government spokesman said in late July.

BANK MUSCAT – Bank Muscat has delayed plans to launch a 500 million rial ($1.3 billion) sukuk programme after the central bank rejected the proposal, a source at the bank told Reuters in mid-July. “We will restructure the sukuk proposal and file for the approval again,” he said.

RENAISSANCE SERVICES – Shareholders of Oman’s Renaissance Services approved in early July plans for the company to buy back mandatory convertible bonds and finance that by issuing up to $200 million of perpetual bonds, either conventional or sukuk.

APICORP – Saudi Arabia-based Arab Petroleum Investments Corp could issue its first sukuk later this year as part of its recently-established $3 billion sukuk programme, the company said in early July.

ABU DHABI ISLAMIC BANK – Shareholders of Abu Dhabi Islamic Bank approved in late June authorisation for the bank to raise its Tier 1 capital to $3 billion through sukuk issuance.

TURKEY – The Republic of Turkey is seeking to raise $1.5 billion from issuance of sukuk and yen-denominated bonds this year, a Treasury official said in late June: around $400 million equivalent from the yen-denominated transaction and the rest from sukuk.

BRUNEI – Brunei’s central bank is preparing to issue long-term sukuk for the first time in the “very near future” while widening the eligible list of buyers of its issuance programme, it said in mid-June.

TOYOTA – The Malaysia unit of Toyota Motor Corp plans to set up a 2.5 billion ringgit programme to raise funds via both conventional and Islamic bonds, a regulatory filing showed in mid-June.

SINDH – Pakistan’s Sindh province plans to raise as much as $200 million through a debut issue of sukuk to help fund development and infrastructure projects, the province’s minister of finance said in mid-June.

ISLAMIC DEVELOPMENT BANK – The Islamic Development Bank increased the ceiling of its Islamic bond programme to $25 billion from $10 billion, as it aims to expand its financing across member countries, the Jeddah-based lender said in early June.

BARWA BANK – Shareholders of Qatar’s Barwa Bank approved plans for a $2 billion senior unsecured sukuk programme that could be issued in various currencies, the lender said in early June.

BAHRI – Saudi Arabia’s Capital Market Authority granted approval to National Shipping Company of Saudi Arabia (Bahri) to issue sukuk, the regulator said on June 1. Bahri plans to complete a debut Islamic bond offer worth up to 3.9 billion riyals this quarter, the company’s vice chief executive officer for finance Mohammad Alotaibi said earlier.

ADIRA DINAMIKA – Indonesian leasing company Adira Dinamika Multi Finance is expected to launch a dual-tranche bond at end-May, bankers said. It aims to sell bonds worth 2.5 trillion rupiah, split into a 2 trillion rupiah conventional portion and a 500 billion rupiah sukuk portion.

AEON CREDIT – Malaysia’s Aeon Credit Service said in mid-May it planned to raise 1 billion ringgit via sukuk murabaha for working capital, repayment of debt and financing for customers.

CIMB – CIMB Group Holdings, Malaysia’s second largest bank by assets, plans to establish a new 6 billion ringgit conventional and Islamic bond programme, a regulatory filing by RAM Ratings said in late April. A CIMB official confirmed the details.

TELEKOM MALAYSIA – Telekom Malaysia set up in late April a $750 million, multi-currency sukuk programme that may see the state-owned company return to global markets after a long absence.

BNI SYARIAH – PT Bank BNI Syariah, the Islamic subsidiary of state lender PT Bank Negara Indonesia, plans to issue sukuk mudaraba with a three-year tenor worth up to 750 billion rupiah in an offer on May 18 and 19, the Jakarta Post quoted CEO Dinno Indiano as saying in mid-April.

JORDAN – Jordan chose the Islamic Corporation for the Development of the Private Sector to support its debut sovereign issue of sukuk, the ICD said in mid-April; the dinar-denominated issue is expected this year and would be used to absorb excess liquidity held by Jordan’s Islamic banks, which is estimated to total 1.4 billion dinars ($2 billion).

AXIS REIT – Malaysia’s Axis REIT said in early April that it had expanded its sukuk programme to 3.0 billion ringgit from 300 million ringgit, and extended the length to perpetual from 15 years.

TALIWORKS – Malaysia’s Taliworks Corp announced in early April that the Securities Commission had authorised its proposed issuance of 210 million ringgit worth of sukuk murabaha, Bernama news agency reported.

KAZAKHSTAN – Kazakhstan’s Finance Ministry is expected soon to propose a draft law allowing its first sovereign sukuk issue, which will probably take place early next year, Yerlan Baidaulet, an adviser to the Investments and Development Ministry, told Reuters in early April.

SENEGAL – Senegalese President Macky Sall said in early April that he had asked the Islamic Development Bank to help his country conduct a second sovereign sukuk issue. He gave no details.

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