UAE’s ADIB launches $5 bln sukuk issuance program

July 15, 2010 By Leave a Comment

July 14 (Reuters) – Abu Dhabi Islamic Bank ADIB.AD plans to raise as much as $5 billion through the sale of Islamic bonds, or sukuk, under a trust certificate issuance program detailed in a July 8 prospectus.

The second-largest lender in the United Arab Emirates posted the prospectus on the London Stock Exchange on Tuesday, listing HSBC (HSBA.L) as the lead arranger on the Islamic bond program.

State-controlled ADIB did not provide a reason for the sukuk issuance program, but the bank, like many other UAE financial institutions, has been forced to take provisions against bad loans amid the global financial crisis and turmoil over Dubai World’s [DBWLD.UL] restructuring.

In addition, ADIB’s chief executive said in April that the bank is planning to expand in retail banking, with a target of 70 branches across the UAE by the end of the year compared with 55 at the end of the first quarter.

ADIB said in a separate statement on Wednesday that it has postponed its board of directors meeting to approve second quarter earnings. The meeting, originally scheduled for later Wednesday will now take place on Sunday. (Reporting by Shaheen Pasha; Editing by Andrew Callus)

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Nakheel chair sees lender deal by next week – paper

July 7, 2010 By Leave a Comment

DUBAI, July 6 (Reuters) – Nakheel, the property arm of troubled state conglomerate Dubai World, may reach a deal with lenders by next week, the company’s chairman said in a newspaper report on Tuesday.

Nakheel [NAKHD.UL] plans to meet with bank lenders on July 14, its chairman Ali Rashid Lootah told the Gulf-based English daily Khaleej Times.

“We are meeting with bankers on July 14 and hopefully they will sign the contract,” he said.

Under a restructuring proposal issued by its parent Dubai World [DBWLD.UL] in March, Nakheel creditors would receive repayment through a mix of 40 percent cash and 60 percent tradeable security, in the form of an Islamic bond.

The company said it began cash payments to trade creditors in a statement issued on June 30. The 40 percent is equivalent to 4 billion dirhams ($1.09 billion), a company spokesman told Reuters.

The rest of the payments, in the form of a bond, would be made in coming months, the company said in June. [ID:nLDE65T0FS]

The developer secured in principal 75 percent agreement from trade creditors for the 40 percent cash payment and expected to reach the remainder in a few weeks, a company spokesman told Reuters on June 30.

(Reporting by Shaheen Pasha; Editing by Thomas Atkins)

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QIB invests $343 million in government-issued sukuk

June 21, 2010 By Leave a Comment

June 20 (Reuters) – Qatar Islamic Bank (QISB.QA) (QIB) invested 1.25 billion riyals ($343.6 million) in an Islamic bond, or sukuk, issued by the Qatar central bank on behalf of the government to boost the domestic bond market.

Financials

QIB, the Gulf state’s second biggest lender by market value, said in a statement issued on Sunday that the investment is governed by an 8-year lease that runs until June 1, 2018.

“The government’s participation in this investment initiative will directly enhance the local economy,” said Sala Jaidah, chief executive of QIB.

Qatar issued 10 billion riyals ($2.75 billion) worth of eight-year conventional Islamic bonds with a coupon of 6.5 percent to local banks earlier in June in an effort to develop the domestic bond market, and provide a new vehicle to pool the excess liquidity in the Gulf state’s banking sector. [ID:nLDE6500W4]

“The issuance of the lease sukuk investment in domestic currency aims to diversify the financing industry, consolidating local sukuks and supports the dynamic participation of Islamic financial institutions in funding the governmental sector,” Jaidah said in the statement. (Reporting by Shaheen Pasha; Editing by Dinesh Nair)

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Emirates may surpass $1 bln profit in 2010 – papers

June 9, 2010 By Leave a Comment

June 8 (Reuters) – Dubai-based Emirates Airline expects to earn more than $1 billion in profit in 2010 and is close to finalizing a deal to sell its stake in Sri Lankan Airlines, according to a media report.

Industrials

Speaking on the sidelines of a conference in Berlin, the company’s president Tim Clark said the airline’s profits will surpass its 2009 earnings, which were just shy of $1 billion.

“We will exceed it. We are well ahead (of our forecasts) already,” Clark told reporters.

In May, the Dubai government-owned operator said it hoped to earn close to 4.5 billion dirhams ($1.16 billion) this year.

Clark added that the $55 million offer quoted from the Sri Lankan government for its stake is “not far off,” The National reported.

Clark said that Emirates Airline is hoping the Sri Lankan government will sign off on the deal by the end of the week.

(Reporting by Shaheen Pasha; Editing by Thomas Atkins)

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