Latest news with #Sukuk
The Star
a day ago
- Business
- The Star
Somalia launches first national stock exchange
MOGADISHU, June 19 (Xinhua) -- The National Securities Exchange of Somalia (NSES) was officially launched on Thursday to spur the country's long-term economic growth and its integration into regional and global financial markets. NSES will initially operate as a private and self-regulatory organization model, working closely with relevant public institutions to oversee and ensure market integrity and transparency, the bourse said in a statement issued in Mogadishu, the capital of Somalia. Trading on the exchange is projected to begin early next year, targeting key sectors including telecoms, banking, real estate, and energy to drive national economic growth. Yasin M. Ibar has been appointed as the first chief executive officer of NSES and will also serve as the exchange's primary spokesperson. He said the launch is an important milestone, not just for Somalia's financial sector but for the entire economy. "NSES will create opportunities for companies to access capital, for investors to support Somalia's growth, and for our economy to integrate effectively into regional and global markets," he added. Ali Yassin Sheikh, deputy governor of the Central Bank of Somalia, said a properly regulated and inclusive securities exchange can be transformative for Somalia. The Central Bank stands ready to provide technical support and policy coordination to ensure a stable, credible financial market architecture that benefits all Somalis, Yassin said. It will provide a platform for issuing government-backed, Sharia-compliant Sukuk (bonds) to finance priority infrastructure and development projects across the nation, according to the statement. As part of its preparation, the NSES team will conduct investor education campaigns and international roadshows targeting Somali diaspora communities in Turkey, Kenya, Britain, Norway and the United States. As a member of the East African Stock Exchanges Association, NSES is expected to benefit from cross-listings with regional exchanges in Kenya, Rwanda, Tanzania and Uganda, enhancing Somalia's integration into the broader East African financial market.
Arabian Business
2 days ago
- Business
- Arabian Business
Saudi National Bank's $1.25bn dollar-denominated Sukuk oversubscribed
Saudi National Bank's (SNB) issuance of US$1.25 billion in dollar-denominated Tier 2 notes, at a profit rate of 6.00 per cent, has been heavily oversubscribed. Bloomberg reported that order books exceeded $2 billion, according to a person familiar with the matter, who asked not to be identified. The bank also informed Tadawul that it will redeem a SAR 4.2 billion (US$1.12 billion) Tier 1 capital sukuk at face value on June 30, five years after the date of issuance. Bloomberg added that the bond may be priced as soon as Tuesday, with proceeds set to be used in part to strengthen SNB's capital base. The bank is issuing 6,250 Sukuks at a par value of US$200,000. Maturity period of the Sukuk is 10 years, but callable after five years. The Notes will be listed on the London Stock Exchange's International Securities Market. Saudi banks have been increasing their external debts recently, but global ratings agency S&P said in a report last month that it did not translate into any 'significant vulnerabilities'. Lower oil prices and geopolitical disturbances in the region have raised concerns, but S&P said: 'While the absolute numbers may appear significant, we expect Saudi banks' net external debt position to remain at a manageable level of about 4.1 per cent of total lending by the end of 2028.' As for the redeemed bond of SAR4.2 billion, SNB informed Tadawul: 'The Sukuk was issued on 30 June 2020 for an aggregate value of SAR4,200,000,000 and in accordance with its terms and conditions, Saudi National Bank, as issuer, intends to call the Sukuk on 30 June 2025. Regulatory approval has already been obtained.' The bank stated that the redemption amount, together with any accrued but unpaid periodic distributions, will be paid on the specified day.
Business Recorder
2 days ago
- Business
- Business Recorder
KE to offer Rs3bn Sukuk through public subscription
K-Electric Limited, the country's only vertically integrated power utility, plans to offer the Sukuk through a public offering. 'PSX is pleased to inform all concerned that KE, a listed company on the Exchange, has applied for listing of its rated, unsecured, short-term Sukuk Certificates on the Exchange,' said PSX, while sharing the KE's prospectus. The total issue size is Rs 3,000 million, out of which Rs 1,000 million have been issued to Pre-IPO investors and Rs 2,000 million are being issued to the general public, inclusive of the green-shoe option of Rs 1,000 million, through a public offer. The Sukuk Certificates will be offered in denominations of Rs 10,000/- or multiples of Rs 10,000/-, with a minimum investment requirement of Rs 50,000/-, i.e. for 5 Sukuk Certificates. April FCA: KE seeks Rs4.69/unit negative adjustment K-Electric is principally engaged in the generation, transmission and distribution of electric energy under the Electricity Act, 1910 and the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (XL of 1997) read with the NEPRA. KE shared that the primary purpose of utilisation of the Sukuk Issue proceeds is to fund routine working capital requirements of the company that primarily arise due to timing differences between outflows and the requisite inflows. 'Working capital requirements include fuel payments and power purchases, which will be partially funded by the proceeds from this financial instrument,' read the prospectus. The company shared that it has prepared a network investment plan of $2 billion for the period FY24 to FY30, focused on expanding grid infrastructure, reducing technical losses, and boosting renewable energy's share to 30%. It is currently developing over 600 MW in solar and hybrid projects, with support from the Government of Sindh and private partners. Additionally, the company has secured new power purchase and subsidy agreements with the Government of Pakistan, aimed at streamlining power offtake and improving cash flows.
Zawya
4 days ago
- Business
- Zawya
Oman: ahlibank successfully leads $259mln Sovereign Sukuk Issuance with 2.6 times oversubscription
Muscat: Demonstrating its growing leadership in Oman's capital markets, ahlibank, together with its Islamic window ahli islamic, has successfully led the issuance of an OMR100 million Sovereign Sukuk for the Government of Oman, in collaboration with other local institutions. The transaction, which closed on 4 June 2025, was significantly oversubscribed by 2.6 times, with the final orderbook reaching OMR260 million. Through a well-executed investor engagement strategy, ahlibank was able to tighten the average yield to 4.625%, lower than the initially set profit rate of 4.65%, thereby securing optimal pricing and outcomes for the Ministry of Finance. This transaction marks a major milestone for ahlibank as it represents the bank's first sovereign Sukuk issuance mandate from the Ministry of Finance. Executed in under two weeks, the issuance highlights ahlibank's strong institutional relationships and its capacity to mobilise the market swiftly and efficiently. The Sukuk attracted robust demand from a diverse investor base, including retail investors, conventional and Islamic banks, insurance companies, and pension funds. The robust investor response underscores the market's strong confidence in the Government of Oman's fiscal discipline, prudent economic policies, and stable macroeconomic framework. Led by ahlibank's Corporate Finance expertise, this issuance reinforces the bank's strategic role in supporting the government's funding objectives and contributing to the ongoing development of Oman's capital markets. In a statement on the successful issuance, Hanaa Al Kharusi, Senior General Manager, Wholesale Banking at ahlibank, commented: 'We are pleased to have partnered with the Ministry of Finance on this landmark issuance, which reflects our deep market expertise and strong execution capabilities. This successful transaction further solidifies ahlibank's position as a trusted advisor in the Islamic capital markets and underscores our strategic focus on supporting national funding objectives. It also reinforces our commitment to building long-term partnerships with key government entities, paving the way for future collaborations that contribute to the continued development of Oman's financial sector.' This achievement further positions ahlibank as a dependable partner for large-scale public issuances and demonstrates its ability to deliver timely and impactful results in a dynamic market environment. © Muscat Media Group Provided by SyndiGate Media Inc. (
Zawya
4 days ago
- Business
- Zawya
UAE's Islamic finance, halal industry poised for robust growth, economic diversification
ABU DHABI: The UAE continues to cement its status as a leading global hub for Islamic finance and the halal industry, aligned with a comprehensive development vision aimed at diversifying the national economy and enhancing global competitiveness. Backed by forward-thinking government policies, a modern regulatory framework, and cutting-edge financial and industrial infrastructure, both sectors are witnessing dynamic growth. The UAE is investing heavily in a knowledge- and innovation-based economy, with Islamic finance and halal products playing key roles in this transformation. In May, the UAE launched a national strategy for Islamic finance and halal industry development. The plan sets out to create an integrated ecosystem for Islamic financial activities, including banking, Takaful (Islamic insurance), Sukuk (Islamic bonds), and non-banking financial services—aligned with international best practices and standards. According to February data from the Central Bank of the UAE, Islamic banks now account for approximately 18% of total banking assets and 22.8% of total credit within the national banking sector. The Islamic Sukuk market, in particular, has expanded significantly. Notably, the federal government launch of the dirham-denominated Islamic Treasury Sukuk (T-Sukuk) in 2023, signaling a new era for the sector. The UAE is now recognised as one of the world's largest Sukuk listing centres. As of May, Sukuk listed on Nasdaq Dubai exceeded US$95.7 billion, reinforcing the country's position as a global hub for Sharia-compliant fixed-income instruments. In the 2023, the country was ranked fourth globally in Islamic financial markets by assets, according to the 2023 Islamic Finance Development Indicator based on total assets. Jamal Saleh, Director-General of the UAE Banks Federation (UBF), noted that the strategy outlines ambitious goals to elevate the Islamic economy's role both domestically, regionally, and internationally. In statements to the Emirates News Agency (WAM), Saleh highlighted the UAE's successful development of financial systems that have empowered the Islamic banking sector as part of the nation's broader diversification agenda. He pointed to significant strides in Islamic banking, Sukuk issuance, and broader Sharia-compliant finance. Saleh also noted the sector's impressive growth trajectory. As of February 2025, total credit granted by Islamic banks reached AED503.5 billion, a 16% year-on-year increase. Private sector credit alone stood at AED350.4 billion, growing 13.2% annually. Meanwhile, deposits at Islamic banks surged to AED595.3 billion, marking an annual growth rate of 16.9%. Parallel to its financial achievements, the UAE is asserting itself as a global halal industry hub. Under the newly approved national strategy, the UAE aims to increase halal exports from AED74 billion to AED315 billion by 2031, leveraging its strategic location and world-class infrastructure. Saleh Lootah, Chairman of the UAE Food and Beverage Manufacturers Group, in statements to WAM, said that the strategy is a landmark step toward establishing the UAE as a global halal production centre. He highlighted growing local manufacturer interest in expanding into this vital sector, particularly as global demand for halal products accelerates. According to a report by Bonafide Research on the halal food and beverage market in the UAE, the market size is projected to exceed $31.27 billion by 2029. This growth reflects the increasing demand for halal-certified products, both within the country and globally, as consumers become more conscious of dietary and ethical standards. The UAE's strategic location as a global trade and tourism hub plays a key role in driving this expansion. Its position enhances the country's appeal to both local and international consumers seeking trusted halal-certified goods, reinforcing the UAE's reputation as a leading centre for halal commerce.
