Islamic Finance >>>

    Gulf Sukuk Suffering Exposes Market Weaknesses

    Persian Gulf Islamic bond sales fell this year, compared with an increase in Asia, highlighting the reluctance of smaller businesses in the region to issue sukuk. To read more and view graph, click here.

    Sukuk Outperform During Fed-Triggered Selloff

    Islamic bonds fared better than non-Shariah compliant notes in the emerging-market debt selloff last week after the Federal Reserve signaled it may trim bond buying, prompting the widest spread in 19 months. To read more, click here. 

    Malaysian Yields at 4-Month High on Food Costs

    Malaysia’s Islamic borrowing costs increased to a four-month high on concern rising food prices will drive up the lowest inflation in Southeast Asia, as the government raises spending before next year’s elections. Yields on 10-year sukuk rose 20 basis points this month to 3.69 percent, after reaching a record low of 3.48 percent on July 26, according to [...]

    Saudi Hollandi to Pay Less Than Fransi in Sukuk Sale

    Saudi Hollandi Bank will probably be able to sell Islamic bonds more cheaply than other issuers in the largest Arab economy as a dearth in debt issuance in the past two months boosts demand for the notes. The board of the Riyadh-based bank, which is 40 percent owned by ABN Amro Holding NV, approved sukuk valued at 1.4 billion riyals ($373 [...]

    Spread Between Dubai, Malaysia Sukuk at All-Time Low

    Guggenheim Progress Cuts TDIC Yield to Record

    Improved prospects for the completion of branches of the Guggenheim and Louvre museums in Abu Dhabi have helped drive Tourism Development & Investment Co.’s Islamic bond yield to a record low as the emirate’s property market recovers. The yield on the 4.949 percent sukuk due October 2014 declined 92 basis points this year to 1.96 percent [...]

    Indonesia Sukuk Yields at 7-Month High on Rupiah

    Indonesia’s Islamic bond yields rose to a seven-month high as the biggest current account deficit since at least 1997 helped make the rupiah Asia’s worst-performing currency this quarter. The yield on the 7.13 percent rupiahdenominated notes due October 2014 climbed 33 basis points in August to 5.99 percent, the highest level since Jan. 16. In Malaysia, yields on similar-maturity sukuk dropped one basis [...]

    Saudi Electricity Gains Outpace GCC on Scarcity

    Saudi Electricity Co.’s Islamic bonds returned 67 percent more than Persian Gulf corporate sukuk, buoyed by a scarcity of Shariah-compliant securities in Saudi Arabia and demand for investmentgrade debt. The state-controlled utility’s 4.211 percent dollar-denominated notes maturing in April 2022 have gained 9.5 percent since their debut at the end of March. That compares with a 5.7 percent return on corporate sukuk from the [...]

    Dubai Sukuk Premium to Malaysia Falls to Record

    The yield premium investors demand to hold Dubai’s unrated Islamic bonds over Malaysia’s tumbled as much as 50 percent this year to a record as the emirate’s state-linked companies settle debt and economic growth accelerates. The spread on Dubai’s 6.396 percent sukuk due November 2014 over Malaysia’s investment-grade 3.928 percent notes maturing in June 2015 fell 137 basis [...]

    Persian Gulf Yield Advances Most in Six Months

    The average yield on Islamic bonds in the Persian Gulf last week jumped the most in six months as concern over Europe’s debt crisis triggered a sell-off of riskier assets and pushed oil prices lower. Sukuk yields in the region rose 15 basis points last week, the most since the week ended Nov. 18, to [...]

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