Latest news with #sukuk
Zawya
5 days ago
- Business
- Zawya
UAE developer Arada seeks $500mln Islamic bond as construction booms
United Arab Emirates property firm Arada Developments is seeking up to $500 million from an Islamic bond, or sukuk, two sources familiar with the matter said, as it joins other property firms tapping debt markets amid a construction boom in the Gulf state. Sharjah-based Arada would join a slew of Gulf property firms to issue bonds this year, which have tapped debt markets for financing needs and to capitalise on a real estate boom as Gulf countries accelerate economic diversification strategies. Arada plans to launch the bond next week and use funds from the debt sale to acquire new land, the sources said, declining to be named because they were not authorised to speak publicly. The plan was not yet finalised, they said. A spokesperson for Arada did not respond to a Reuters request for comment. Arada last tapped debt markets in September for a $150 million tap of its $400 million sukuk due 2029 which attracted strong demand and offered a yield of more than 7%. In the Middle East and North Africa, issuers raised a record $32.2 billion through sukuk in the six months to June 30, according to LSEG data, defying tariff uncertainty, geopolitical tensions and volatile oil prices. Regional developers which have raised Islamic debt this year include Dubai's Sobha Realty and Omniyat, both raising $500 million in May. Arada was established in 2017 by Sharjah's deputy ruler, Sheikh Sultan bin Ahmed AlQasimi and Prince Khaled bin Alwaleed bin Talal AlSaud, the son of Saudi billionaire Prince Alwaleed Bin Talal. It has projects and assets in its home country, and expects to launch sales and construction in Australia by the end of 2025. The company posted total revenue of $1.1 billion last year, up around 40% from 2023, according to a company presentation. (Reporting by Hadeel Al Sayegh and Federico Maccioni; Editing by Anousha Sakoui and Rachna Uppal)
Zawya
16-07-2025
- Business
- Zawya
Saudi Arabia completes July sukuk issuance with $1.33bln allocation
RIYADH — The National Debt Management Center (NDMC) announced the completion of the July 2025 issuance under the Saudi government's riyal-denominated sukuk program, with a total allocation of SR5.020 billion. According to the NDMC, the issuance was divided into four tranches. The first tranche amounted to SR776 million, maturing in 2029. The second tranche was SR1.340 billion, set to mature in 2032. The third tranche reached SR823 million, maturing in 2036, while the fourth tranche totaled SR2.081 billion, with maturity in 2039. This issuance is part of the Kingdom's ongoing efforts to strengthen the local debt market and support fiscal sustainability. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
16-07-2025
- Business
- Zawya
Indonesia launches 5-year US dollar Islamic bond, 10-year green sukuk, term sheet shows
SINGAPORE/JAKARTA: Indonesia has launched a five-year U.S. dollar-denominated Islamic bond, or sukuk, with an initial price guidance of 4.85%, along with a 10-year green sukuk at 5.5%, according to a term sheet reviewed by Reuters on Wednesday. The document does not specify the size of the issuance, and the Indonesian government has not yet provided an official comment. The sukuk bonds are being issued by Perusahaan Penerbit SBSN Indonesia III, with the Indonesian government acting as the obligor, according to the sheet, which added that they will be listed on both the Singapore Exchange and Nasdaq Dubai. The bonds will hold credit ratings in line with the sovereign ratings of Indonesia, Southeast Asia's largest economy, at Baa2 by Moody's, BBB by S&P and BBB by Fitch. Indonesia will use the proceeds to meet part of its general financing requirements, with proceeds from the 10-year green sukuk going to finance or re-finance eligible green expenditures, according to the document. Deutsche Bank and HSBC are the joint green structuring coordinators. Bank of America, Deutsche Bank, Dubai Islamic Bank , HSBC and Mandiri Securities are the bookrunners, while BRI Danareksa Sekuritas and Trimegah Sekuritas Indonesia are the co-managers, the sheet showed. (Reporting by Yantoultra Ngui in Singapore and Stefanno Sulaiman in Jakarta; Editing by Muralikumar Anantharaman and Sherry Jacob-Phillips)
Arab News
15-07-2025
- Business
- Arab News
Saudi Arabia raises $1.34bn through July sukuk issuance
RIYADH: Saudi Arabia's National Debt Management Center raised SR5.02 billion ($1.34 billion) through its riyal-denominated sukuk issuance for July, marking a sharp 113.6 percent increase compared to the previous month. In June, the Kingdom issued sukuk worth SR2.35 billion, while May and April saw issuances of SR4.08 billion and SR3.71 billion, respectively. Sukuk are Shariah-compliant financial instruments that offer investors partial ownership in an issuer's underlying assets, making them a popular alternative to conventional bonds. According to NDMC, the July issuance was divided into four tranches. The first tranche, valued at SR776 million, will mature in 2029. The second, worth SR1.34 billion, is set to mature in 2032, followed by a third tranche of SR823 million due in 2036. The largest tranche, totaling SR2.08 billion, will mature in 2039. Saudi Arabia's debt market has witnessed robust growth in recent years, attracting strong investor interest in fixed-income instruments amid a global environment of rising interest rates. In April, Kuwait Financial Center, also known as Markaz, reported that Saudi Arabia led the Gulf Cooperation Council in primary debt issuances during the first quarter of the year. The Kingdom raised $31.01 billion from 41 offerings, accounting for over 60 percent of total issuances across the region. Credit rating agency S&P Global noted in April that Saudi Arabia's expanding non-oil sector and steady sukuk issuance volumes are likely to support the growth of the global Islamic finance industry. The agency forecasts global sukuk issuance to reach between $190 billion and $200 billion in 2025, with foreign currency-denominated offerings contributing up to $80 billion, assuming market conditions remain stable. Echoing that outlook, a report by Kamco Invest published in December said Saudi Arabia is expected to account for the largest share of bond maturities in the GCC between 2025 and 2029, with $168 billion set to mature during the period. Earlier this month, S&P Global reiterated its positive view, stating that the global sukuk market is on track to maintain its momentum in 2025, with foreign currency-denominated issuances projected to reach between $70 billion and $80 billion.
Khaleej Times
15-07-2025
- Business
- Khaleej Times
Sharjah Islamic Bank reports a net profit of Dh697.2 million for the first half of 2025
Sharjah Islamic Bank (SIB) posted a net profit after tax of Dh697.2 million during the first half of 2025, an increase of 25 per cent compared to Dh558.7 million in the first half of 2024. Income from investments in Islamic financing and sukuk grew by Dh113.6 million, or 6.4 per cent, reaching Dh1.9 billion in the first half of 2025, compared to Dh1.8 billion in the first half of 2024. Meanwhile, total distributions to depositors and sukuk holders amounted to Dh1.1 billion. Sharjah Islamic Bank continues to emphasise the diversification of its revenue base, as evidenced by a significant growth in the net fee and commission income which rose sharply by 53.5 per cent to Dh276.0 million in the first half of 2025, up from Dh179.8 million in the first half of 2024. As a result, the Bank recorded total operating income of Dh1.2 billion, an increase of Dh133.5 million, or 13.0 per cent, compared to Dh1.0 billion in the same period last year. This upward trend reflects SIB's ability to maintain stable operating income in a challenging economic environment while effectively capitalizing on opportunities across various economic sectors. Total general and administrative expenses for the first half of 2025 amounted to Dh405.4 million, an increase of 16.9 per cent compared to Dh346.9 million in the same period of 2024. Despite the increase in expenses, the Bank's net operating income before impairment provisions reached Dh757.2 million, compared to Dh682.1 million in the first half of 2024, reflecting a 11.0 per cent increase, which shows the Bank's ability to absorb cost pressures while maintaining stable profitability, reinforcing its operational efficiency and sound financial management. The bank recorded a net reversal of impairment provisions of Dh9.3 million during the first half of 2025, compared to an impairment provision of Dh67.3 million in the first half of 2024, reflecting a significant improvement in the quality of the financing portfolio as well as prudent credit risk management and successful recovery efforts. This positive development contributed significantly to the 25 per cent increase in profit after tax, which reached Dh697.2 million, compared to Dh558.7 million in the same period last year. These results confirm the effectiveness of the Bank's risk mitigation strategies and its commitment to preserving asset quality amid a changing global economic environment. On the balance sheet side, total assets increased by Dh5.5 billion, or 6.9 per cent, to reach Dh84.7 billion as of June 30, 2025 compared to Dh79.2 billion at the end of the previous year. This is backed by increase in total customer financing to Dh43.0 billion, compared to Dh38.1 billion at the end of 2024, marking a 12.9 per cent increase. Customer deposits amounted to Dh52.7 billion, compared to Dh51.8 billion at the end of the previous year. As a result, the financing to deposit ratio stood at 81.5 per cent, compared to 73.6 per cent at the end of the previous year. SIB continued to maintain a strong liquidity ratio of 21.1 per cent of total assets, amounting to Dh17.8 billion, compared to 21.6 per cent at the end of the previous year. The return on assets and return on equity also increased, reaching 1.70 per cent and 14.88 per cent, respectively, compared to 1.44 per cent and 12.76 per cent for the previous year.
