BANKING - UPDATE: Bahrain's Al Baraka Banking Group Plans To Sell $200M Sukuk By End 2010 -CEO

DUBAI (Zawya Dow Jones)--Bahrain-based Al Baraka Banking Group (BARKA.BH) plans to sell a $200 million Islamic bond before the end of this year, the group's chief executive told Zawya Dow Jones late Sunday."This will be the bank's first sukuk ever," said Adnan Ahmed Yousif. Al Baraka has received offers to lead arrange the bond from three banks, a German, a British and an Arabic lender, he said.

Al Baraka Banking Group's first half net profit rose 3%, to $95 million, compared to the same period last year. Total assets grew by 3%, finance and investments by 2% and deposits and unrestricted investment accounts by 4%.

Yousif, who is also the group's president, said the bank plans to tap the bond market to "put Al Baraka's name in the international market." The bond will only be $200 million so as "not to put burden on our balance sheet."

Al Baraka Turk Bank is also in the process of raising a $250 million Murabaha facility, Yousif said. "We hope to sign a $250 million Murabaha facility on Sept. 1, 2010 for our Turkish operations," he said. Lead arrangers for this loan are Nour Islamic Bank, Standard Chartered and ABC Islamic Bank. "Funds will be raised to fund bank expansion of operations in Turkey," Yousif said, noting that Al Baraka Turk Bank, which has total assets of $5 billion, will grow its branches from the current 110 to 120 branches in Turkey by the end of 2010.

"We also plan to enter the Iraqi market. The board approved opening a branch for Al Baraka bank in Iraq," Yousif said.

-By Mirna Sleiman, Dow Jones Newswires; 97143644966; mirna.sleiman@dowjones.com

Source : http://online.wsj.com/article/BT-CO-20100822-704262.html - Aug 22, 2010