CAPITAL MARKETS - Al Baraka revives debut sukuk on record-low yields

www.gulfnews.com -Dubai: Nine months after cancelling its debut sale of Islamic bonds because yields were too high, Al Baraka Banking Group’s Turkish unit is back approaching investors as borrowing costs tumble to record lows.

Al Baraka Turk Katilim Bankasi AS will offer as much as $250 million (Dh917 million) of seven-year dollar-denominated sukuks this year, the group’s Chief Executive Officer Adnan Yousuf said by phone on August 27 from Alexandria, Egypt. The average sukuk yield globally has fallen 91 basis points this year to an all-time low of 3.09 per cent, according to the HSBC/NASDAQ Dubai US Dollar Sukuk Index. The premium to own Islamic debt rather than US Treasuries has narrowed 81 basis points to 204. (source)

BANKING - Albaraka Turk Plans to Raise as Much as $750 Million in 2012

www.bloomberg.com - Albaraka Turk Katilim Bankasi AS (ALBRK), the Turkish unit of Bahrain’s AlBaraka Banking Group (BARKA), plans to raise as much as $750 million through syndicated financing and an Islamic bond sale this year, the group chief executive said.
The bank may raise between $400 million and $500 million from a so-called syndicated murabaha facility next week, CEO Adnan Yousif said in a telephone interview late yesterday from Alexandria, Egypt. The financing will mostly be in dollars, with some in euros, he said. The bank also plans to raise as much as $250 million from the sale of 7-year Islamic bonds this year. (source)

BANKING - Albaraka Turk Gains After Dunya Report of Gulf, Balkan Expansion

www.businessweek.com - Albaraka Turk Katilim Bankasi AS (ALBRK), a Turkish Islamic bank, climbed after Dunya reported it would expand into the Middle East and Balkans, citing Chief Executive Officer Fahrettin Yahsi.

The shares added 1.6 percent to 1.96 liras at 11:25 a.m. in Istanbul, heading for their highest on a closing basis in three weeks. Shares on the overall banking index fell 0.3 percent to 116,770.2.  (source)

BANKING - Albaraka Turk's share sale will Kigili Abdullah

www.finansglobal.com - (Finansglobal) - Abdullah Kigili, Albaraka Turk, 372 thousand 584 shares owned by Central Registry Agency has registered to sell stock.
According to today's closing value of the shares subject to sale prices at the level of 700 thousand TL. Level of only 0.07 percent of the shares in the bank's capital ratio. (source)

ARTICLES - Forbidden fruit: Turkey’s tempting Islamic banking sector

IFN.COM - Cover Story - 29-Aug-2011 - Volume8.Issue34

Forbidden fruit: Turkey’s tempting Islamic banking sector economic powerhouse

Turkey has been one of the few economic success stories emerging from the recession, with the highest economic growth rate in the world (11%) in Q1 2011. Despite a dip in 2008 with GDP contracting 14.6%, the economy rapidly returned to growth and GDP grew by 8% in 2010 with a 5% expansion predicted for 2011. Turkish banks were largely unaffected by the global financial crisis, with limited exposure to toxic securities and high retail deposit levels providing a liquidity buffer. The regulator maintains firm control with a focus on preventing excessive credit growth and a ban on foreign currency retail lending, meaning that banks have experienced little funding stress.  Fitch Ratings recently changed Turkey’s ‘BB+’ sovereign rating outlook from stable to positive suggesting that a future upgrade could be on the cards, which will only enhance Turkey’s attractiveness to foreign investors. (source)

CAPITAL MARKETS - Albaraka Group, Turkey Unit to Sell $500 Million Sukuk in 2011

Businessweek.com - Sept. 24 (Bloomberg) -- Albaraka Banking Group BSC and its unit in Turkey may raise a total of $500 million in Islamic bonds this year, Chief Executive Officer Adnan Ahmed Yousif said.

Albaraka Turk Katilim Bankasi AS, the Shariah-compliant Turkish unit of the bank, may sell about $200 million in sukuk by November, while the Bahrain-based parent may raise about $300 million from a similar sale by the end of the year, Yousif said in an interview in Washington today.  (source)

FINANCE - Albaraka Turk closes $350m loan facility

Bahrain-based Albaraka Banking Group (ABG) said its Turkish unit Albaraka Türk Katılım Bankas has successfully closed a $350 million dual-currency syndicated murabaha financing facility.

Several major banks including ABC Islamic, Emirates NBD, Noor Islamic and Standard Chartered acted as the initial mandated lead arrangers and the bookrunners for the transaction. (source)

BANKING - ABG Al Baraka’s H1 income surges 15pc to $353m - expansion Albaraka Turk

Bahrain-based Al Baraka Banking Group (ABG), a leading Islamic bank, has posted a rise of 15 per cent in its operating income which reached $353 million in the first six months of the year.

After deducting all operating expenses, net operating income was up 13 per cent to $170m. (source)

CAPITAL MARKETS - Market Review Albaraka Turk

Albaraka Banking Group (BARKA) BSC: The Turkish unit of Bahrain’s biggest publicly traded Islamic lender, Albaraka Turk Katilim Bankasi AS (ALBRK), plans to raise $240 million from a syndicated Murabahah facility this quarter to be used for expansion. The shares dropped 1.7 percent to $1.15, when they last traded on Aug. 8. (source)

BANKING - ABG shows resilience to regional political turmoil - ambitious growth for Albaraka Turk

MANAMA: Bahrain-based international Islamic banking major, Al-Baraka Banking Group (ABG), has been resilient to the political turmoil from early this year in the countries in which it operates, according to Standard & Poor's Ratings Services.

"We believe that political and economic tensions are easing in countries where Al-Baraka Banking Group operates, and that the group has shown resilience in the impaired operating environment caused by the tensions," an S&P statement said.(source)

BANKING - Turkish Bank to Open Branch in Irbil in August (Albaraka Turk)

A Turkish participation bank will open a branch in the northern Iraqi city of Irbil in August, a bank statement said on Wednesday.
Participation bank Albaraka's branch will begin serving Irbil people in August.
It will be Albaraka's first branch in a foreign country.
"Irbil branch will contribute to bilateral relations between Iraq and Turkey," Albaraka's director general Fahrettin Yahsi said.  (source)

BANKING - Turkey Equity Movers: Anel Elektrik, Albaraka Turk, Arcelik, Koc

Albaraka Turk Katilim Bankasi AS (ALBRK TI): The Turkish unit of Manama-based Albaraka Banking Group BSC plans to hire banks by the end of next week to raise $200 million with a murabaha Islamic syndicated loan, according the bank's group Chief Executive Officer, Adnan Ahmed Yousif. The shares were unchanged at 2.26 liras. (source)

BANKING - Turkish banking boom inviting for Arab banks, Albaraka executive says

Star - Banking institutions in Arab countries impressed by Turkey’s solid financial system and highly profitable banking industry consider opening branches in the country, according to Albaraka Turk CEO Adnan Ahmed Yusuf Abdukmalik. “A number of Arab banks are in line to take part in Turkey’s booming banking sector,” said Abdulmalik at the opening of its new head office in Istanbul. Citing the growth of the Turkish banking sector, Albaraka Turk chief said he believes that cooperation between the Turkish and Arab banking industries would bring about even greater development. Arab banking industry is estimated to be around USD 3.2 trillion in size and 2010 profits amount to USD 36 billion.

A member of the Saudi-based Albaraka Financial Services Group, Albaraka Turk has been in operation in Turkey as a participation bank for 30 years and has 120 branches throughout the country .(source)

BANKING - Al Baraka eyes $300 mln sukuk, further expansion - Albaraka Turk set for $250 mln sukuk

Sees $300 mln sukuk by Sept, no plans for sukuk programme; CEO says reviewing Oman Islamic banking prospects; Nomura Bank mandated as advisor for Islamic megabank

Bahrain's Al Baraka Bank expects to sell $300 million worth of Islamic bonds by September as it looks to secure long-term financing to fund its expansion plans, its chief executive said on Wednesday.

Previous plans to issue Islamic bonds, or sukuk, were thwarted by the onset of the financial crisis and, more recently, the regional unrest, said Adnan Ahmed Yousif in an interview with Reuters.

The Islamic lender had previously announced plans for a $500 million sukuk programme but had shelved that, he said. (full story)

CAPITAL MARKETS - Turkish Islamic banks plan to sell bonds

Türkiye Finans, led by Yunus Nacar, plans to sell at least $300 million in Islamic bonds this year. 
 

Turkey’s Islamic banks are planning sukuk sales to take advantage of both the lowest borrowing costs in more than five years and the rising demand for the country’s securities.

Türkiye Finans, Kuveyt Türk and Albaraka Türk, all at least part-owned by Persian Gulf lenders, said they plan to offer Islamic bonds this year. (full story)

CAPITAL MARKETS - Turkish Parliament passes tax neutrality law for Sukuk Al-Ijara

Almost unnoticed, the Turkish National Assembly in Ankara passed the Finance Bill 2011 in February 2011 which includes tax neutrality measures for Sukuk Al-Ijara (leasing certificates) thus paving the way for a spate of corporate Sukuk issuances in the country.

Murat Haholu, head of the Surveillance Group, Corporate Finance Department, Capital Markets Board of Turkey, confirmed that the tax neutrality measures for the Sukuk Al-Ijara were published in the Official Gazette at the end of February 2011, which he stressed is an important development in the participation banking sector in the country. (source)

BANKING - Net Income of Al Baraka Banking Group Jumped by 15% to US$ 193 Million and Assets by 21% to US$ 16 Billion in 2010

The Bahrain based leading Islamic banking group, Al Baraka Banking Group B.S.C (ABG) announced that it has achieved a net income of US$ 193 million in 2010, an increase of 15% on the income achieved in 2009. Similarly, balance sheet items witnessed notable increasesed Total assets increased by 21%, total finance and investments by 21%, deposits including unrestricted investment accounts by 23% while total equity increased by 5% as at the end of December 2010 in comparison with the end of December 2009. The Group's results in year 2010 reflect the ability of the Group to maintain its financial performance in a steady state of growth over the past few years, even during the global economic crisis that crippled many financial institutions. This in turn proves the soundness and robustness of the business strategies that the Group follows and which are based on unwavering commitment to the values of Islamic banking, supported by extensive experience in the markets in which the Group operates, high quality of the products and services it offers and extensive network of branches, as well as strong capital resources that enabled it to continue invest in opportunities generated by the current conditions. (source)

RATNGS - Fitch Downgrades Albaraka Turk to 'B+'

Fitch Ratings has downgraded Turkey-based Albaraka Turk Katilim Bankasi A.S.'s (Albaraka Turk) ratings as follows:

BANKING - ABG- Biggest Islamic bank to be launched soon

JEDDAH: Sheikh Saleh Kamel, chairman of Al Baraka Banking Group, is set to launch the world’s biggest Islamic bank before the end of the year, with an initial public offering of $3 billion, a top official has said.

Adnan Yousuf, CEO of Al Baraka Banking Group, who is also the chairman of the Union of Arab Banks, said: “We have already completed the necessary research for launching the Islamic bank and there are currently discussions between Sheikh Saleh Kamel and investors to prepare for the public offering.”

BANKING - Al-Baraka plans up to $500 million sukuk in Q1 2011 - Indonesia first priority now

BEIRUT: Bahraini Islamic lender Al-Baraka will issue up to $500 million in Islamic bonds in the first quarter of 2011, its chief executive said Thursday.

“We will issue sukuk in 2011 for the group in Bahrain between $200 and $500 million,” Adnan Yousif told Reuters on the sidelines of a banking conference in Beirut.

“It is a medium-term sukuk for five years and it will help financial institutions to attract new clients to take part in these sukuk,” he added.