Al Baraka to raise $200m with sukuk
Manama, May 16, 2013
Al Baraka Islamic Bank yesterday announced that it was raising $200 million through trust certificates in a Sukuk Al Wakala issue which will mature in 2015.
The 18-month sukuk is aimed at raising cash to help increase the bank's exposure to Sharia-compliant trade finance which accounted for some $5 billion of business for the bank last year, reported the Gulf Daily News, our sister publication.
The issue is being promoted through a private placement with participants able to invest a minimum of $100,000.
The purchase price for the certificates is 100 per cent of their face amount, plus an amount equal to 2 per cent of the face amount of the certificates for an agency.
"The proceeds from the certificates will be used to invest, through the use of a wakala structure, in a Sharia-compliant trade finance arrangement or arrangements," a spokesman for the bank said.
"Given the nature of the investments that will be made with the proceeds from the certificates, they will not be listed or admitted to trading on any stock exchanges or markets," he added.
The bank expects a profit return on the certificates of 6 per cent over the 18- month period. – TradeArabia News Service
More Finance & Capital Market Stories
- ABG units win top Islamic finance award
- Finance House approves 25pc cash dividends
- Qatar 'most expensive country in Gulf'
- Egypt regulator sets rules for index
- Dubai Islamic eyes Kenya, Indonesia for expansion
- ADCB to buy back 3pc of its shares
- GCC insurance growth outpaces developed markets
- Bahrain 'faces budget deficit, inflation challenges'
- Global Payment Services wins key certification
- BBK unveils big India expansion plans
- Kuwait GDP growth to hit 3.5pc in 2014
- Gulf shares tumble over EM exposure cut
- GCC bonds to gain from macro-economic climate
- French Business Council Dubai members up 18pc
- Egypt economy growth seen less strong than thought
- Sharjah approves $4.2bn budget for 2014
- Saudi non-oil sector posts solid growth in Feb
- Seera total income rises to $34m
- NBAD approves 40pc cash dividends
- NBAD sees 8-10pc loan growth
- Al Basel Group launches investment arm
- Union Insurance posts $18m profit
- Oman warns banks on conflicts of interest
- Japan to lend Tunisia $480m
- 400 to join anti-laundering seminar in Riyadh
- Lebanese insurer to head Prague Club
- UAE's first REIT plans $135m IPO
- Bahrain banking industry outlook 'positive'
- New India Assurance opens Bahrain branch
- Qatar sets up mixed business incubator