Latest news with #Sukuk
Zawya
2 days ago
- Business
- Zawya
Premia launches first Saudi Arabia government Sukuk ETF in Asia
Hong Kong – In partnership with BOCHK Asset Management Limited (BOCHKAM), Premia Partners, the leading homegrown ETF provider from Hong Kong, announces listing of Premia BOCHK Saudi Arabia Government Sukuk ETF (the ETF) on 29 May 2025 on HKEx. As Asia's first investment grade government sukuk ETF, the physical replicated ETF is designed to provide investors with direct access to government sukuk denominated in Saudi Riyal or US Dollar issued by the Saudi Arabia government or government agencies, with total expense ratio (TER) of 0.35% p.a. only. Premia BOCHK Saudi Arabia Government Sukuk ETF (Tickers: (HKD distribution class)/ (USD distribution class)) tracks the iBoxx Tadawul Government & Agencies Sukuk Index. Covering only Sukuk instruments issued by Saudi Arabian government or its agencies, with a stable A-rated sovereign issuer rating by major international agencies, the strategy reflects the robust oil reserves, low government debt level and vibrant economic development of Saudi Arabia under the Vision 2030 Strategic Plans. The ETF offers stable income and attractive yield, as well as diversification benefits given its low correlations with other bonds and major asset classes. 'The launch of this ETF is a significant milestone and cumulation of a year-long preparation in our efforts to build an efficient tool for international allocators looking for diversification from investment grade emerging markets and shariah-compliant fixed income solutions,' said Rebecca Chua, Managing Partner of Premia Partners. 'It is a particularly timely strategy in the current market environment, as allocators increasingly look to values from more diversified allocation and uncorrelated returns.' Li Tong, Deputy Chief Executive of BOCHK and Chairman of BOCHKAM, said: 'BOCHKAM is pleased to collaborate with Premia Partners to launch the Asia's first Saudi Arabic Government Sukuk ETF. This fund combines the flexibility and transparency of an ETF with the features of Islamic finance, providing investors with convenient access to Saudi Arabia's capital market. BOCHKAM will continue to foster collaboration with the Middle East and other markets by developing more globally-diversified asset allocation solutions, contributing our efforts to strengthen Hong Kong's position as a global asset management centre.' Leveraging its capabilities in both Asia and Middle East, HSBC will provide a range of trustee, global custody and fund administration services for Premia BOCHK Saudi Arabia Government Sukuk ETF in both Hong Kong and Saudi Arabia. Commenting on the launch, Faris AlGhannam, Chief Executive Officer and Board member, HSBC Saudi Arabia, said: 'ETFs have become a key tool for asset managers tapping into the emerging Middle East-Asia investment corridor. This landmark transaction reflects the sustained demand among foreign investors for access to Saudi Arabia's economic transformation and the Kingdom's debt capital markets. As the leading international bank with the deepest asset servicing capabilities in both Hong Kong and Saudi Arabia, we are proud to have enabled Premia to launch the Premia BOCHK Saudi Arabia Government Sukuk ETF.' Mr. Mohammad Al-Rumaih, CEO of the Saudi Exchange, said: "The issuance of this ETF on HKEX marks a significant milestone in our ongoing efforts to provide global investors with access to the Saudi market and enhance portfolio diversification worldwide. This ETF, tracking the iBoxx Tadawul Government & Agencies Sukuk Index (SAR Unhedged) TRI, offers global investors a unique opportunity to access highquality government-issued sukuk." 'S&P Dow Jones Indices is delighted to license the iBoxx Tadawul Government & Agencies Sukuk Index to Premia Partners for this new ETF launch. The index provides market participants with a benchmark that focuses on shariah-compliant funding obtained by the Saudi Arabia government and its key organizations through sukuk issuances. As Saudi Arabia diversifies its economic base and fosters growth within the domestic debt market, the index is designed to encompass shariah-compliant sukuk issuances to support the kingdom's Vision 2030 initiatives,' said Kangwei Yang, Director of Fixed Income Product Management at S&P Dow Jones Indices. -Ends- For enquiry enquiries@ About Premia Partners Founded in 2016, Premia Partners is a leading ETF manager from Hong Kong, dedicated to building lowcost, efficient, best practice ETFs for Asia. As of May 29th 2025, Premia Partners manages 12 equity and fixed income ETFs designed as low-cost, efficient allocation tools for Asia. For more information on Premia or Premia ETFs covering China, Emerging ASEAN, Asia Metaverse/ Innovative Technology, Vietnam, Taiwan, China high yield bonds, China government bond, Asia USD investment grade bonds, US Treasury and Saudi Arabia Government Sukuk, please visit
Zawya
2 days ago
- Business
- Zawya
Nigeria: FG's $188mln Sukuk attracts over $1.3bln in record-breaking subscription
The Series VII Sovereign Sukuk through which the Debt Management Office (DMO) offered N300 billion on behalf of the Federal Government of Nigeria (FGN), recorded an unprecedented subscription level of over N2.205 trillion. This represents an excess of 735 per cent of subscriptions. The Debt Management Office (DMO) described this as clear evidence of the huge investor appetite for the ethical instrument introduced by the DMO in 2017 as an innovative strategy to expand the nation's investor base and provide opportunities for all Nigerians to participate in the activities of the capital market. An analysis of the subscriptions showed that the subscribers cut across various segments of the public: retail, non-interest banks and financial institutions, banks, pension fund administrators, asset/fund managers and others. The DMO said like the previous series, funds realized from the Issuance will be used by the FGN to construct new roads and rehabilitate existing ones, as well as build bridges in the six geo-political zones of the country and the Federal Capital Territory (FCT). It added that the raising of funds through Sukuk to finance infrastructure projects aligns with Mr. President's Renewed Hope Agenda of which infrastructure development is a key pillar. The management stressed that the DMO remains committed to providing safe and liquid investment products to the public and supporting the FGN's development plans.
Leaders
2 days ago
- Business
- Leaders
Saudi Arabia, Hong Kong Boost Cross-Border Financial Ties
Saudi Arabia and Hong Kong may soon approve additional cross-border financial products. On Thursday, an exchange-traded fund tracking Saudi government bonds began trading in Hong Kong. This marks the first fixed-income fund in the territory to provide such exposure. Authorities from both regions announced plans to deepen financial ties amid growing trade uncertainties. The newly launched exchange-traded fund represents a significant milestone in Hong Kong's financial market. Julia Leung, CEO of Hong Kong's Securities and Futures Commission, highlighted more products in development. These include a sharia-compliant Sukuk bond and a real estate investment trust. Leung expressed confidence in the cross-listing of various financial products during the Capital Markets Forum. Hong Kong introduced Asia's first ETF tracking Saudi equities in November 2024. This initiative aims to boost capital flows as diplomatic relations between Beijing and Riyadh strengthen. Over recent years, Hong Kong has actively pursued a listing for Saudi Aramco. Such a listing would provide investors in the Asian financial hub with easier access to the Saudi state oil giant. Broadening Financial Ties Amid Global Trade Tensions Hong Kong's Financial Secretary Paul Chan emphasized opportunities beyond stocks at the forum. He noted potential for bonds, derivatives, and other financial products between Hong Kong and the Middle East. This expansion of cross-border products comes amid rising trade tensions. In April, U.S. President Donald Trump imposed sweeping tariff measures, disrupting global markets. A U.S. trade court recently blocked these tariffs from taking effect. The court ruled that the president overstepped his authority by imposing broad duties on imports. When asked about navigating trade deal uncertainties, Chan remarked that the court's move would 'at least bring President Trump to reason.' Strengthening Economic Partnerships The collaboration between Hong Kong and Saudi Arabia signifies a strategic effort to enhance financial integration. By introducing innovative financial products, both markets aim to attract diverse investment opportunities. This partnership not only strengthens bilateral economic ties but also positions both regions as key players in the global financial arena. As global trade dynamics continue to evolve, the proactive measures taken by Hong Kong and Saudi Arabia set a precedent. These initiatives demonstrate a commitment to fostering economic resilience and growth. Investors and market participants can look forward to a broader range of financial instruments. These developments will undoubtedly contribute to the overall stability and prosperity of the global financial landscape. Short link : Post Views: 16
Zawya
2 days ago
- Business
- Zawya
AlRayan Bank announces successful issuance of $500mln 5-year Senior unsecured RegS sukuk
Doha, Qatar: AlRayan Bank rated A2 by Moody's with a stable outlook has successfully issued its $500m 5-year Senior Unsecured RegS Sukuk at a final Price of 5-year US Treasuries + 80 bps (Expected Profit rate of 4.875% at an Issue price of 99.82). The successful completion of this transaction underscores the robustness of the Qatari economy and AlRayan Bank's strong credit fundamentals. This issuance reaffirms AlRayan Bank's standing as a leading financial institution in the region and marks a significant milestone in its journey to diversify its funding sources and continue to strengthen its presence in the international markets. In many ways this was a landmark transaction, including a strong return to the Capital markets after a 5-year hiatus. AlRayan Bank's first transaction since the successful completion of the merger in December 2021 and the establishment of the bank's new corporate identity 'AlRayan Bank' First Qatari bank to issue a USD benchmark Sukuk RegS offering out of the QFC Entity (MAR Finance LLC, established in Qatar Financial Centre 'QFC') Largest price tightening from IPTs in recent deals with a sizeable 40bps reduction in spread. Tightest re-offer spread over US Treasuries ever achieved by any Qatari bank at US 5Y Treasury+80bps A final orderbook of $1.5bn (covered more than 3 times) that peaked at over $1.9bn. Both investors and geographic diversification were achieved. H E Sheikh Mohamed bin Hamad Bin Qassim Al Thani, Chairman of AlRayan Bank, commented 'We are delighted with the outstanding success of this issuance." "The significant demand for our sukuk reflects the financial strength and credit worthiness of AlRayan Bank, which is backed by its asset quality, strong liquidity & robust capitalization. We extend our sincere gratitude to all those who contributed to the success of this transaction Omar Al-Emadi, Acting Group Chief Executive Officer of AlRayan Bank, commented 'AlRayan Bank is pleased with its successful return to the international capital markets and with the remarkable response of this sukuk issuance not only from Qatar institutions but also from a diverse group of regional and international investors." "This underscores the global confidence in Qatar's economic resilience and AlRayan Bank's solid financial standing within the international financial markets. We extend our deepest gratitude to the Joint Global Coordinators & JLMs, whose expertise and unwavering commitment & support played a pivotal role in the success of this transaction.' Mizuho & HSBC acted as Joint Global Coordinators while Al Rayan Investment, Dubai Islamic Bank, Dukhan Bank, The Islamic Corporation for the Development of the Private Sector, Mashreq bank, MUFG, Qatar International Islamic Bank, QNB Capital, SMBC, Standard Chartered Bank and Warba Bank acted as the Joint Lead Managers and Book runners. © Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (
The Star
2 days ago
- Business
- The Star
Hong Kong, Saudi Arabia may approve more cross-border financial products
HONG KONG/SYDNEY: Hong Kong and Saudi Arabia are considering allowing more cross-border financial products, authorities said on Thursday, as the two markets seek to deepen financial ties amid rising trade uncertainties. An exchange-traded fund tracking bonds issued by the Saudi government started trading in Hong Kong on Thursday, the first fixed-income fund listed in the territory to offer such exposure. Apart from the fund, more products - such as a sharia-compliant Sukuk bond and a real estate investment trust - are "in the pipeline" for approval to trade between Hong Kong and Riyadh, said Julia Leung, CEO of Hong Kong's Securities and Futures Commission. "We're very comfortable in the cross listing of whatever products," Leung told those attending the Capital Markets Forum organised by Saudi exchange operator Tadawul Group. Hong Kong launched Asia's first ETF tracking Saudi equities in November 2024, as the two markets look to spur capital flows as diplomatic relations warm between Beijing and Riyadh. In the last few years, Hong Kong has been seen wooing Saudi Aramco to list in the city, a deal that would allow investors in the Asian financial hub easier access to the Saudi state oil giant. Apart from stocks, there are opportunities for bonds, derivatives and other financial products between Hong Kong and the Middle East, Hong Kong's Financial Secretary Paul Chan said at the forum, when asked about the progress of a potential listing of Saudi Aramco. The expansion of cross-border products coincides with rising trade tensions after U.S. President Donald Trump unleashed sweeping tariff measures in April roiling global markets. A U.S. trade court on Wednesday blocked the tariffs from going into effect, ruling that the president overstepped his authority by imposing across-the-board duties on imports from nations that sell more to the United States than they buy. Asked how countries and companies should navigate the uncertainty of trade deals following the U.S. court block, Chan said the move would "at least bring President Trump to reason". - Reuters
