Bahrain sukuk attracts $4 billion
Bahrain’s $750 million sovereign sukuk issue attracted an order book of about $4 billion with strong demand from the Middle East, a lead manager said, giving a promising sign to cash-stripped corporates to tap markets.
Bahrain, the first sovereign to issue a sukuk in the Arab region this year and only the second globally.
The initial size of the sukuk offering was $500 million, but the issue was oversubscribed by almost eight times. As a result, the value of the sukuk was raised to $750 million, a Central Bank of Bahrain statement said.
“One of the major reasons behind this issue was to establish a yield curve benchmark for longer-term Islamic securities,” said Shaikh Salman bin Isa Al Khalifa, executive director, banking operations, CBB.
“This is a testament to Bahrain’s strong credit and the confidence which International markets place on the kingdom’s financial sector,” added Shaikh Salman.
The sukuk was priced at the low end of expectations at 340 basis points over US Treasuries.
Islamic bonds, or sukuk, are underpinned by physical assets whose returns are used to pay bond-holders, to account for Islam’s prohibition of interest.
Some 55 percent of the issue went to Middle Eastern investors, with Europe accounting for 26 percent and Asia for 15 percent of the investor base of almost 200 accounts, Dawood said.
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Categories: Bahrain · Sukuk
Tagged: Islamic Banking, Islamic finance, Sukuk
Kuwait Finance House appoints ITS to provide integrated ‘Ethical Banking’ solution
Kuwait Finance House – Bahrain (KFH-Bahrain) announced today that it has appointed the computer group International Turnkey Systems (ITS) to provide an integrated ‘Ethical Banking’ solution to support the Bank’s expansion plans.
The one year contract includes upgrading the Bank’s core banking system, integrating the branch automation system, trade finance, Islamic finance, internet banking, in addition to services related to human resources and treasury. The combined solutions will benefit the customer by providing greatly enhanced services from the Bank.
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Categories: Bahrain · Information Technology
Tagged: Islamic Banking, Islamic finance
Bahrain Islamic Bank launches household Islamic financing scheme
In line with their innovative offerings, Bahrain Islamic Bank (BisB), the flagship of Islamic banking in the kingdom of Bahrain, announced the introduction of their all-new household financing programme, “Ezy Buy”.
The Ezy Buy scheme has been introduced to provide customers the convenient option of purchasing their desired household items such as electronics, furniture and much more through affordable installments based on the customer’s budget.
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Categories: Bahrain · Products
Tagged: Islamic Banking, Islamic finance
Islamic fund eyes private buyouts
Global Investment House, Millennium Capital and Dubai Islamic Bank have received approval from the Central Bank of Bahrain for a US $500 million Islamic buyout fund.
The fund will provide investors access to Shariah compliant private equity investments, which the partners see as a largely untapped asset class across the region.
As seed investors, Global, DIB and Millennium Capital will be contributing 13% of the fund’s capital. Global will be the investment manager to the Fund, while Millennium Capital will act as investment advisor.
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Categories: Africa · Bahrain · Islamic Investments · Islamic Mutual Funds · Middle East
Islamic Finance: First energy bank is born
Central Bank of Bahrain grants license to bank devoted entirely to the energy sector.
First Energy Bank (FEB), which claims to be the world’s first investment bank focused exclusively on the energy sector, has received a wholesale banking license from Central Bank of Bahrain.
At its first shareholders meeting, held at the end of June, the bank appointed its Sharia Supervisory Board, KPMG as external auditor and its initial board of directors.
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Categories: Bahrain · Islamic Investments
