The Saudi Investment Bank (SAIB) has completed a private placement of Saudi Riyals denominated Tier 1 Sukuk worth SAR 2 billion (USD 533 million), to meet its financial demands, as per a filing to the Saudi Stock Exchange (Tadawul). Why it Matters? The Sukuk has a perpetual maturity and a 6% return rate that will be paid from the date of issue until the 29th of June 2027, at which point it will reset. The offering included 2,000 total Sukuk at an SAR 1,000,000 par value. Details  The lead manager and bookrunner for the offering was Alistithmar Capital.  From...

Malaysia-based Tomei Consolidated Berhad (Tomei) has announced its intentions to launch an Islamic Medium-Term Notes Programme with a nominal value of up to MYR 150 million (USD 34 million). Why it Matters?  The programme, based on the principle of Murabahah through a Tawarruq arrangement, will allow Tomei the freedom to occasionally issue secured or unsecured Sukuk Murabahah and will have a duration of 25 years from the date of the first issuance. Details  The appointed principal adviser, lead arranger, and lead manager for the programme is Public Invest...

In the absence of solid environmental, social, and governance (ESG) data, investors will be looking for other types of ‘low-cost mechanisms’ that include Shariah screens so they can narrow their investment options and find companies that are likely to have lower financial and ESG risks. Unsophisticated application of ESG screening that excludes entire countries or applies developed market ESG standards to emerging & frontier markets may constrain the new funding needed to achieve the Sustainable Development GoalsAlternative investment screening methods, including some that...

Dubai-based Dar Al Takaful (DAT) and Abu Dhabi-based Watania have fulfilled another prerequisite in the two entities’ merger process with the expiration of the 45-day policyholders' notice period and no objections received.  Why it Matters? On the 27th of April 2022, a notice was issued by DAT and Watania to creditors and policyholders in respect of the merger, in compliance with the Federal Decree Law on Commercial Companies and in accordance with the Federal Law on the Establishment of Insurance Authority and Regulation of the Insurance Business. Opinions and feedbac...

The takaful sector in the Sultanate of Oman (Oman) has witnessed a 9.1% jump in 2021 as total direct contributions amounted to OMR 70.78 million (USD 183 million) of the country’s insurance sector, from OMR 64.85 million (USD 168 million) in 2020, according to the Statistical Yearbook of Insurance Sector Indicators for the year 2021 issued by the Capital Market Authority (CMA). Why it Matters? In 2017, the insurance industry made up 1.45% of the country’s gross domestic product (GDP), while Islamic insurance business accounted for 15% of total direct premium...

The Saudi Investment Bank (SAIB) has begun the offering of its SAR-denominated Tier 1 Sukuk, with a SAR 1 million (USD 266,499) par value. Why it Matters? The offering is set to take place from the 21st to the 28th of June 2022. The number and value of the offered notes is yet to be determined by the bank pending the evaluation of market conditions. Details  The lead manager and bookrunner for the offering is Alistithmar for Financial Securities and Brokerage Company (Alistithmar Capital). In March 2021, SAIB announced its plans to launch a Sukuk progra...

Bahrain-based International Islamic Financial Market’s (IIFM) Board of Directors has announced its intention to develop new standards for Shariah-compliant syndicated financing and new Islamic liquidity management instruments, during its 46th meeting held on the 21st of June 2022. Why it Matters? After evaluating the rising need for developing an additional Islamic liquidity management tool, the Board gave its approval for the formation of a global working group and for organising an industry consultation meeting in the third quarter of 2022 (3Q 2022) for work to start base...

Saudi Arabia’s National Debt Management Center (NDMC) has announced the closure of an SAR 5.44 billion (USD 1.5 billion) SAR-denominated Sukuk issuance, under the Saudi Arabian Government SAR-denominated Sukuk Programme on the 21st of June 2022. Why it Matters? The issuance was offered in two tranches sized at SAR 2.86 billion (USD 762 million) and SAR 2.58 billion (USD 688 million) and set to mature in 2030 and 2034, respectively. Details  In May 2022, the NDMC closed an SAR 14.95 billion (USD 398 million) issuance, offered in three tranches under the Saudi...

The Federal Cabinet of the Islamic Republic of Pakistan (Pakistan) has given its approval on the 21st of June 2022 for the issuance of Sukuk Ijara in both the domestic and foreign markets to strengthen the government's fiscal condition and advance the Islamic banking sector in the country. Why it Matters? Following this approval, the country is set to issue the Sukuk. The State Bank of Pakistan (SBP) will be given custody of the underlying asset supporting the offering. More details regarding the assets and other programme-specifics will be made public soon. Details Pakista...