New Products Spreading Shariah Finance
On March 28, 2015 · In Islamic Bonds, Islamic Finance, Sharia Compliant, Sharia Products, Shariah Bonds, Shariah Finance, SUKUK
Just a year or two ago, the rise of Shariah bonds (sukuk) created the main tool by which Shariah was spread, particularly in the West. Today, new, short-term instruments are broadening and deepening the Shariah market even more, thus facilitating the spread of Shariah through the financial back door… Islamic equivalents to conventional financial instruments […]
Bank of England Shills for Shariah and Bitcoin
On February 27, 2015 · In Bitcoin, Britain, Islamic Banking, Islamic Bonds, Islamic Finance, Shariah Banking, Shariah Bonds, Shariah Finance, SUKUK, United Kingdom
What do Bitcoin and Sharia have in common? The Bank of England. Concerted efforts to embrace new areas of finance such as these are uncommon, and the move regarding digital currencies is seemingly being taken in tandem with other schemes. The UK under-secretary of state for foreign and commonwealth affairs, Tobias Ellwood, said at the […]
Tunisia will delay its planned issue of $500 million in Shariah bonds until the third quarter of the year… http://www.zawya.com/story/Tunisia_to_delay_USD500m_sukuk_issue_until_Q3_2015__minister-TR20150112nL6N0UR1V9X2/
The financial jihadists continue to aggressively promote Shariah finance outside of the Islamic world… Dubai Islamic Bank mandated HSBC and Standard Chartered Bank as Joint Structuring Banks and Al Hilal Bank, Dubai Islamic Bank, Emirates NBD Capital, HSBC, National Bank of Abu Dhabi, Noor Bank, Sharjah Islamic Bank and Standard Chartered Bank as Joint Lead […]
Back in 2009, the market for Shariah bonds (sukuk) nearly collapsed under the weight of a series of defaults. In more recent years, Sukuk have become the favored instrument of choice by the Shariah finance industry. With the collapse in the price of oil, don’t be surprised to see the return of defaults though. Here’s […]
Just as we predicted, the collapse in the price of oil is making itself felt in the market for Shariah finance’s favorite instrument: sukuk, also known as Islamic bonds or Shariah bonds. This happened before in 2008-2009. The sukuk bubble may be bursting… Tumbling oil prices are battering Bahrain’s Shariah-compliant bonds. The Gulf nation’s dollar-denominated […]
Faced with Crisis, Russian Banks Jump To Shariah
On December 30, 2014 · In Creeping Shariah, Islamic Banking, Islamic Bonds, Islamic Finance, Islamization, Russia, Shariah Banking, Shariah Bonds, Shariah Finance, SUKUK
Russian lenders are stepping up efforts to tap Islamic finance as international sanctions and a slump in oil prices push the world’s biggest energy exporter to the brink of a recession. Vnesheconombank, Russia’s state development bank, is seeking advice from lenders in the Middle East on how to sell its first Islamic bonds, the RIA Novosti state-news service reported […]
BNY Mellon Joins the Financial Jihad
On December 16, 2014 · In DIFC, Islamic Bonds, Islamic Finance, Shariah Bonds, Shariah Finance, SUKUK
BNY Mellon has been appointed delegate, principal paying agent, registrar and transfer agent for a Sukuk launched by DIFC Investments LLC. A Sukuk is a Shariah-compliant bond. The joint lead managers on the issuance are Dubai Islamic Bank PJSC, Emirates NBD Capital, Noor Bank P.J.S.C. and Standard Chartered Bank. The Sukuk was assigned a BBB- credit […]
Luxembourg is poised to test demand for Shariah-compliant bonds (sukuk) as the issuer of the lowest-yielding sovereign sukuk on record plans to become a regular borrower. Luxembourg, one of the smallest economies in the 28-member European Union, sold 200 million euros ($254 million) of five-year Islamic bonds in September priced two basis points below midswaps. That […]
Shariah Gaining Foothold in Africa Through Shariah Bond Offerings
On October 15, 2014 · In Africa, Gambia, Islamic Bonds, Kenya, Nigeria, Senegal, Shariah Bonds, South Africa, SUKUK, Tunisia
African markets are starting to open to Shariah finance, primarily through governments’ debut sales of sovereign sukuk (Shariah bonds). Regimes across Africa are using Shariah bonds as a way to attract cash-rich Islamic investors, with South Africa making a $500 million issue in September and Senegal raising 100 billion CFA francs ($208 million) in June. The Tunisian government could […]
Just as pro-democracy demonstrators take to the streets of Hong Kong, the communist masters who hold sway over that city have embraced a different form of totalitarianism: Shariah, through the financial trap door. Hong Kong is expected to see more Shariah bond (sukuk) issuances in the near future, following the launch of its first such bond this […]
The sukuk was issued through ZAR Sovereign Capital Fund Proprietary Limited, as trustee of The RSA Sukuk No. 1 Trust (each established in the Republic of South Africa). The sukuk was offered within the United States to “qualified institutional buyers” (who are also “qualified purchasers” under the Investment Company Act 1940) in reliance on Rule […]
Luxembourg issued a €200 million sukuk, the first from a Eurozone country and a euro-denominated sovereign Shariah-compliant bond. http://gulfnews.com/business/markets/luxembourg-s-200m-sukuk-oversubscribed-two-times-1.1393542
Sabana Shariah-Compliant Industrial REIT is the sole entity in Singapore to have sold sukuk this year in a setback to the republic’s ambitions to become a Shariah finance hub. While the city introduced rules allowing for Shariah-compliant bond sales in 2006, offerings have been limited. And the best news: “Based on current circumstances, there does not […]
Shariah bond programs from a trio of big conventional banks are set to expand the boundaries of Shariah finance, helping open the market to first-time issuers while testing the banks’ ability to win over industry purists. Since June, France’s Societe Generale, Bank of Tokyo-Mitsubishi UFJ (BTMU) and Goldman Sachs have set up such sukuk programs, aiming to […]
Standard & Poor’s Ratings Services said corporate and infrastructure sukuk issuance is likely to rise over the next few years, despite a dip in issues over the past eight months compared to the same period of 2013. Issuance has trended downward this year in the Gulf Cooperation Council (GCC) and Malaysia, dropping 33 per cent […]
In what is a clear case of prostitution to attract Islamic petrodollars, Hong Kong is issuing another Sukuk… Hong Kong SAR has set final price guidance at US Treasuries plus 25bp area (plus or minus 2bp) for a US dollar five-year sukuk, according to a lead manager. The new price compares with initial guidance of […]
Check out the spin at work here to explain a sukuk auction in Indonesia that fell short of goals… The bids were robust during a biweekly sukuk auction on Tuesday but the Finance Ministry decided not to absorb too many funds as investors demanded high yields, which could eventually increase the government’s borrowing costs. http://www.thejakartapost.com/news/2014/09/10/sukuk-auction-misses-target-investors-expect-high-yields.html […]
It’s been some time since we posted an article focusing on Shariah-compliant bonds, also known as Sukuk. Long-time readers may recall that sukuk have become the financial vehicle of choice for insinuating Shariah across the world through the financial community. These types of instruments are expressly designed to put the West at ease with Shariah. […]
Malta could be considering issuing a sovereign Sukuk – the asset-backed, tradable bond that is structured in accordance with Shariah law. Prime Minister Joseph Muscat is said to be considering issuing a small Sukuk “to see what the reaction of the markets would be and to give a political message that this is the sort of instrument […]
Dubai Investments PJSC, whose Shariah bond is rated BB+ by S&P, sold off a ton of assets in the last quarter and is now claiming its bonds will be re-rated BBB soon, or just in the range of investment grade… http://www.bloomberg.com/news/2014-08-04/dubai-investments-bullish-on-ending-junk-status-islamic-finance.html
Global Sukuk issuance in 2013 fell 8.9 per cent from the previous year, totalling $119.7 billion. With demand for Shari’ah-compliant instruments so high, it’s the lack of effective liquidity management that’s holding back the growth of the global Islamic market. One of the key obstacles to investing in Islamic products is a lack of standardisation […]
UK ignores British Shariah banks in debut sukuk
On June 19, 2014 · In Britain, Islamic Banking, Islamic Bonds, Shariah Banking, Shariah Bonds, SUKUK, United Kingdom
Last week, Britain mandated five banks to arrange a $336 million Shariah bond (sukuk) issue. But the choice was notable for excluding all of Britain’s six Shariah banks; none was included in the mandate.That could reduce the impact of the issue in developing expertise and depth in Britain’s Shariah banking sector. http://www.qatar-tribune.com/viewnews.aspx?n=395BB46C-3D84-4920-8C8E-90DD96BE4265&d=20140618
The Islamization of the financial world is taking hold in Japan. Bank of Tokyo-Mitsubishi UFJ is planning a debut sukuk in Malaysia. The bank is also considering offering the world’s first yen-denominated sukuk. While Japan has no Islamic banking rules of its own, the government amended legislation in 2008 to allow subsidiaries of the country’s lenders […]
Saudi Arabia’s Cautious Sovereign Wealth Fund
On May 30, 2014 · In Debt Bonds, Islamic Bonds, Saudi Arabia, Shariah Bonds, Sovereign Wealth Funds, SUKUK
The Economist provides a bit of insight into the Kingdom of Saudi Arabia’s sovereign wealth fund in the article linked below. Note that the article mentions that the fund invests in bonds. It does not specify sukuk, or Shariah-compliant bonds. It simply says that the fund invests in bonds, which would be decidedly haram… http://www.economist.com/news/finance-and-economics/21602731-kingdom-does-not-splash-cash-other-gulf-states-oil-fuelled-caution […]
The Philippine government is planning to issue Shariah-compliant bonds, or sukuk, for the first time in the predominantly Catholic nation in order to finance a number of infrastructure programs and generally raise investment from the oil-rich Middle East. For example, Qatar and the Philippines in 2012 agreed to set up a $1bn investment fund that would focus […]
Bahrain-based Al Baraka Banking Group said it is considering issuing subordinated Shariah-compliant bonds through its South African and Pakistani units. The South African issue is obviously more significant from a geopolitical standpoint since Pakistan is already an Islamic nation with a mature system of Shariah finance. South Africa, on the other hand, is not an Islamic nation, […]
National Australia Bank is considering selling up to $US500 million ($482m) in Islamic bonds in what would be the country’s first issuance of sharia-compliant debt securities. http://sheikyermami.com/nab-set-to-join-rush-for-islamic-cash/comment-page-1/
Luxembourg on the Brink of Shariah-Compliance
On March 14, 2014 · In Creeping Shariah, Islamic Bonds, Islamic Finance, Islamization, Luxembourg, Shariah Bonds, Shariah Finance, SUKUK
The quest for petrodollar capital is prompting Luxembourg to issue a Shariah bond. There is still hope that Luxembourg might be brought back from the brink, however. The transaction is being scrutinized by the Council of State, a body which advises the national legislature and they’re exhibiting appropriate skepticism… “First, in the world of finance, […]
One of the chief concerns about Shariah-Compliant Finance is the lack of liquidity born of the ban on interest. The industry has sought to address this problem with convoluted instruments which are largely unproven. And they won’t be proven until they endure a financial crisis of some sort. In the last financial crisis the instrument […]
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