Middle East Bonds

It has hit more than a few bumps along the way but the International Islamic Liquidity Management Corp’s plans to issue sukuk commercial paper — the first of its kind in the Islamic market — finally look to be coming good. The company said on Thursday that it will issue a $490m debut this month, after more than 2-1/2 years of work on the project.

It has hit more than a few bumps along the way but the International Islamic Liquidity Management Corp’s plans to issue sukuk commercial paper — the first of its kind in the Islamic market — finally look to be coming good. The company said on Thursday that it will issue a $490m debut this month, after more than 2-1/2 years of work on the project.

The International Islamic Liquidity Management Corp will this month issue $490m of sukuk commercial paper — the first of its kind in the Islamic market — after more than 2-1/2 years of work on the project.

Saudi Arabian dairy company Almarai is looking to raise capital and has asked its shareholders to approve plans to issue one or more sukuk.

Dubai government owned Dubai Multi Commodities Centre (DMCC) is thinking of issuing sukuk to fund what it says will be “the world’s tallest commercial tower”.

Bahrain built an impressive $7.75bn orderbook for its new 10 year bond, allowing it to double its originally targeted deal size and ratchet in guidance. Syndicate officials off the bond questioned the high starting spread, but the bookrunners said the result was ample proof that their strategy had been a resounding success.

Bahrain brought a new 10 year dollar bond to market on Wednesday morning, surprising syndicate bankers away from the deal with a new issue premium they said was unheard of for an investment grade credit.

Omani oil and gas offshore fleet contractor Renaissance has completed the second and final phase of its OR200.5m ($521.3m) refinancing programme.

The International Islamic Liquidity Management Corp has attracted criticism for delays in getting its programme of short dated sukuk underway. But IILM’s project must not be rushed if it is to achieve the success the Islamic market badly needs.

The Central Bank of Bahrain’s BD18m monthly sukuk al-salam issue has been oversubscribed by 304%.

Turkey remains on course to meet debt maturities over the coming year, say analysts and investors, despite the country facing a range of problems that are dragging on its economy.

Islamic finance has just begun to gain ground in Jordan. Its government passed a sukuk law last year but has yet to issue a sovereign deal, although it has signed several financing agreements with the Islamic Development Bank. EuroWeek’s sister publication Islamic Finance Information Service spoke to Bassem Awadallah, former finance minister of Jordan and a board member of Al Baraka Bank, about the development of Islamic finance and its wider economic impact.