Saudi Arabia plans to issue green bonds soon

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Saudi Arabia plans to issue green bonds soon, a finance ministry official said on Monday, as the oil-producing kingdom seeks to embrace environmental, social and governance (ESG) concerns to expand its investor base and finance its transition to a greener economy.

APICORP hires banks for 5 year green bonds

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The Arab Petroleum Investments Corporation (APICORP), a multilateral development bank headquartered in Saudi Arabia, has hired a group of international banks to arrange an issuance of U.S. dollar-denominated green bonds with a five-year tenor, a bank document showed on Thursday.

Etihad raises $600m from sustainability-linked sukuk

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Etihad Airways sold $600 million in the world’s first transition sukuk and the first sustainability-linked financing in global aviation as part of its commitment to environmental sustainability.

The transaction comes after the UAE’s national carrier became the first airline to secure commercial funding conditional upon compliance with the UN sustainable development goals in December last year.

How can sukuk issuers become more relevant in global capital markets?

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Over a 10-year period between 2009 and 2019, the annual growth rate of sukuk in terms of issuance volume has outstripped conventional bonds. Global sukuk registered a 5.2 per cent compound annual growth rate, compared to 2.3 per cent for conventional bonds. Annual growth rates alone do not convey the full story, though, as the conventional bond market towers over the sukuk market in volume terms.

ICD Completes Pricing for $600 Million Sukuk Issuance

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The Islamic Corporation for the Development of the Private Sector, (ICD), a multilateral development financial institution and the private sector arm of the Islamic Development Bank Group (IsDBG), announced a successful completion of the pricing of a five-year $600 million Sukuk issuance at MS + 140bps.

Qatar’s Masraf Al Rayan markets 5-yr dollar sukuk – document

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DUBAI, Aug 26 (Reuters) – Qatari Islamic lender Masraf Al Rayan began marketing a five-year U.S. dollar-denominated sukuk on Wednesday, a document showed.

It gave an initial price guidance of 220 basis points over midswaps for the Islamic bonds, the document from one of the banks arranging the deal showed. It is expected to close later on Wednesday.

State Street opens new Saudi office

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State Street has bolstered its Middle East presence after opening its first office in Saudi Arabia.Based in Riyadh, State Street Saudi Arabia Financial Solutions will provide investment services and asset management for institutional investors in the region. It is licensed to conduct agency-based dealing, discretionary portfolio management, advising and custody activities.

Fitch On: a curated compilation of Gulf Cooperation Council in-depth research and commentary

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As a global leader in credit ratings and research, Fitch is recognized in the Middle East for in-depth research and analysis across all major sectors including Corporate, Structured, Islamic Finance, Financial Institutions, Government, Infrastructure, and Project Finance. Our analytical teams have a global perspective with local market expertise which is valued by investors in the Middle East and across the globe.

Abu Dhabi’s FAB raises Dh1.8bn through Chinese yuan formosa bond

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First Abu Dhabi Bank, the UAE’s largest lender by assets, has raised 3.6 billion Chinese yuan (Dh1.8bn) through the sale of a five-year formosa bond.

The issue is the largest denominated in Chinese yuan globally, FAB said in a statement on Tuesday. Formosa deals refer to bonds issued in Taiwan by foreign borrowers, but are denominated in currencies other than the Taiwanese dollar.

Credit FAQ: GCC Government Funding Needs Increase Sharply On Low Oil Prices And COVID-19

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Government funding needs in the Gulf Cooperation Council (GCC) have increased significantly in 2020, as low oil prices and the economic repercussions of the COVID-19 pandemic have significantly widened governments’ fiscal deficits. We expect total GCC government debt to increase by a record-high of about $100 billion in 2020 alone, with an additional $80 billion run-down in government assets to finance an aggregate GCC central government deficit of about $180 billion. Based on our macroeconomic assumptions, we expect to see GCC government balance sheets continue to deteriorate up until 2023.

Fitch Rates DP World’s Hybrids ‘BB’/Stable

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Fitch Ratings – London – 07 Jul 2020: Fitch Ratings has assigned DP World Salaam Limited’s (DPWS) USD1.5 billion hybrid Sukuk instruments final ratings of ‘BB’ with a Stable Outlook. The final rating is in line with the expected rating assigned on 22 June 2020.

APICORP Issues Benchmark USD750 Million Bond

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The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, announced the issuance of a benchmark USD750 million dollar-denominated five-year bond, as part of its USD3 billion Global Medium-Term Note (GMTN) program.

Islamic Derivatives Increasingly Necessary, but Constraints Remain

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Fitch Ratings-Dubai/London-17 June 2020: Fitch Ratings says that the recent volatility in key Islamic finance markets caused by the coronavirus pandemic, oil price fall and cuts in central banks repo rates highlights the need to use effective sharia-compliant derivatives as hedging tools (tahawwut). However, derivatives markets remain underdeveloped in most countries where Islamic finance is prevalent.

Fitch Downgrades DP World PLC to ‘BBB-‘; Outlook Stable

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Fitch Ratings – London – 16 Jun 2020: Fitch Ratings has downgraded DP World PLC’s (DPW) Long-Term Issuer Default Rating (IDR) to ‘BBB-‘ from ‘BBB’ and Short-Term IDR to ‘F3’ from ‘F2’. The Rating Watch Negative has been resolved, and the Outlooks have been revised to Stable.

Dubai Islamic Bank closes $1bn sukuk

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Dubai Islamic Bank (DIB), the largest Sharia-compliant lender in the UAE, closed a $1 billion (Dh3.67bn) 5-year sukuk with a profit rate of 2.95 per cent despite a challenging global environment due to the coronavirus pandemic.