Newswrap (May 2023) - Islamic Finance
Marble Capital launches N3bn Halal Commodities Fund; IsDB Bank signs 77 deals worth $1.4bn for projects in member countries; UAE's Aldar to issue 10-year $500mln green sukuk Wednesday; Majid Al Futtaim sets a new standard in sustainable financing with its fourth green capital markets issuance; UAE’s debut Islamic treasury bonds attracts bids worth Dhs8.3bn; Gilded achieves Shariah compliance certification for its physical gold products.
Company News - Nigeria
Marble Capital launches N3bn Halal Commodities Fund. (May 10, 2023)
Marble Halal Commodities Fund (MHCF), the first approved commodities fund by Nigeria's Securities and Exchange Commission (SEC), has been launched in Lagos. The N3 billion fund, focused on the agro-economic and extractive sectors, aims to impact the Nigerian financial market and agriculture industry. (Business Day)
Company News – Pakistan
Another day, another bank wants to transition to Islamic Banking. (May 10, 2023)
Zarai Taraqiati Bank Limited (ZTBL), a Pakistani agricultural lender, is planning to convert its banking system from conventional to Islamic banking. This move comes after the government's directive to phase out the interest-based banking system within the next five years. (Pakistan Today)
Company News - Pakistan
Abhi becomes Menap’s first fintech to issue Islamic bonds. (May 14, 2023)
Abhi, an emerging embedded finance platform in the Menap region, has achieved a historic milestone by issuing $7.1 million worth of Islamic bonds. This achievement is significant for Abhi and the region, as no other fintech in the area has accomplished this before. The bond issuance follows Abhi's qualification for the International Selection Panel (ISP) and its selection by Hub71 in Abu Dhabi, UAE, to expand into the Middle East. (Zawya)
Company News – Bahrain
Ila Bank launches ‘alburaq' Islamic banking experience in Bahrain. (May 16, 2023)
Bahrain's ila Bank, the retail arm of Bank ABC, has launched 'alburaq,' an exclusively digital, Shari'a-compliant banking offering. The mobile app-based banking experience provides customers with intuitive Islamic banking products and services. ila Bank aims to merge the Islamic finance expertise of Bank ABC Islamic with its digital capabilities to offer a personalized digital Islamic banking experience. (Zawya)
Company News – Saudi Arabia
Gilded achieves Shariah compliance certification for its physical gold products. (May 16, 2023)
Gilded, a leading fintech company specializing in functional gold, has received Shariah compliance certification for its gold product from Amanie Advisors Shariah Board. This certification solidifies Gilded's reputation as a trusted provider of safe and Shariah-compliant gold investment opportunities, expanding its reach to a wider audience in the MENA region and beyond. (Zawya)
Investment – UAE
UAE’s debut Islamic treasury bonds attracts bids worth Dhs8.3bn. (May 11, 2023)
The UAE's first auction of dirham-denominated Islamic treasury sukuk (T-Sukuk) received overwhelming demand, with bids totaling $2.26 billion (Dhs8.3 billion) and oversubscription of 7.6 times. Both the two-year and three-year tranches saw strong interest, resulting in a final allocation of Dhs550 million for each tranche and a total issuance of Dhs1.1 billion. (Gulf Business)
Investment – Saudi Arabia
Islamic Development Bank signs 77 deals worth $1.4bn for projects in member countries. (May 14, 2023)
The Islamic Development Bank Group concluded its annual meeting in Jeddah by signing 77 financing agreements worth $1.44 billion with 24 member countries. The agreements aim to support sectors such as health, agriculture, food security, transportation, energy, small and medium-sized businesses, education, and humanitarian relief. (Arab News)
Investment – UAE
UAE's Aldar to issue 10-year $500mln green sukuk Wednesday. (May 17, 2023)
Abu Dhabi's Aldar Investment Properties has launched a debut $500 million green Islamic bond, or sukuk, with a ten-year maturity. The proceeds from the issuance will be used to finance or invest in eligible projects under Aldar's Green Framework. The sukuk was launched with a spread of 150 basis points over US Treasuries, tightening from earlier guidance, as order books reached $2.2 billion. (Zawya)
Investment – Saudi Arabia
Saudi Arabia’s NDMC closes May sukuk issuance at $1.15bn. (May 23, 2023)
Saudi Arabia's National Debt Management Center (NDMC) has successfully closed a sukuk issuance worth SR4.33 billion ($1.15 billion) in May. The issuance consisted of two tranches, with one maturing in 2033 and the other in 2037. (Arab News)
Investment – Saudi Arabia
Banque Saudi Fransi completes dollar-denominated sukuk issuance of $900m. (May 24, 2023)
Banque Saudi Fransi has successfully concluded the sale of a $900 million dollar-denominated sukuk with an annual return of 4.75 percent. The sukuk, issued under the Trust Certificates Issuance Program, has a five-year tenure and was offered to qualified Saudi and international investors through a special-purpose entity. (Arab News)
Trade Developments - Bahrain
AAOIFI, Refinitiv and iSecurities Hub inked an MoU. (May 10, 2023)
The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), Refinitiv, and iSecurities Hub have signed a Memorandum of Understanding (MOU) to collaborate on the development of Shari'ah-compliant treasury solutions and a Sukuk platform. (Zawya)
ESG Developments – UAE
Majid Al Futtaim sets a new standard in sustainable financing with its fourth Green capital markets issuance. (May 25, 2023)
Dubai-based Majid Al Futtaim, a leading shopping mall and leisure pioneer, has raised $500 million through a green sukuk issuance to refinance part of its existing $800 million bond due in May 2024. This marks the company's fourth capital markets issuance focused on environmental, social, and governance (ESG) goals. (Zawya)
