Wednesday, 11 January 2012

Sukuk’s risk-off bonanza | beyondbrics – FT.com

The Gulf is seeing a sukuk bonanza this week as several entities announced debut and follow-up Islamic bond sales in an attempt to tap liquidity in the Middle East and Asia.

In Saudi Arabia, the General Authority of Civil Aviation announced a debut sukuk programme, offering a juicy and rarely-spotted government-backed Islamic bond. Equally juicy but for other (high-yield) reasons, Tamweel, the troubled Dubai-based mortgage lender, also revived a $300m sukuk plan.

Those announcements come hot on the deals of a sale by Emirates Islamic Bank, a unit of Emirates NBD, and another sale this week by Abu Dhabi-based First Gulf Bank. Whether high-yield or government-backed, it’s a sukuk investor’s dream as companies try to get deals done before the window closes and it’s too late. (Or slip them in ahead of their earnings announcements).

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