Al Baraka Turkish unit to issue $200m sukuk


24/01/2012 21:58 AST

Bahraini lender Al Baraka Bank's Turkish subsidiary will go ahead with a $200 million Islamic bond issue in the first quarter, after delaying a sale last month due to pricing concerns, the bank's chief executive said.

'We will launch the sukuk in the first quarter of this year,' Adnan Ahmed Yousif said in an interview on the sidelines of an Islamic finance and banking conference in Oman.

Albaraka Turk Participation Bank is Al Baraka's largest unit and the first bank in Turkey to operate on Islamic principles. It said in December it had postponed the planned issue because the yields investors expected were too high.

Strong demand for a $350 million sukuk issued by Turkish bank Kuveyt Turk in October has underlined how Turkey may become a major source of Islamic bonds for Gulf investors keen to diversify geographically.

The Islamic banking group posted a net income of $166 million in the first nine months of 2011, an increase of 13 percent over the same period in 2010.

'2012 will be better than 2011, we anticipate to improve our balance sheet by 15 percent over last year,' Yousif said.

In October, he said Al Baraka Bank was keen on expanding into Libya following the change in government, and to expedite its previously filed Islamic banking license in the country.

'We are planning another 50 branches in 2012, in countries such as Turkey, Pakistan, Algeria, Egypt and Tunisia,' he said.

He also reiterated that the creation of a long-touted $3 billion Islamic megabank would still go ahead, and the project was now placed in the hands of the Islamic Development Bank (IDB).

Reuters
Albaraka Banking Group - BARKA
2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | News Archive
Most Viewed Companies
Ticker Price Volume
SAGRINSURANCE 30.83 576,307
SABIC 95.58 5,846,819
SPIMACO 43.7 519,635
ALKHODARI 28.55 245,935
JULPHAR 2.54
RIBL 16.05 1,146,263
ACIG 28.47 367,871
Recent News

Kuwait preparing Islamic bond legislation to help finance budget-min
Kuwait is preparing legislation to facilitate issues of Islamic bonds by the government as it assesses options to finance a big budget deficit caused by low oil prices, Finance Minister Anas al-Saleh

Gold fails to react to weaker dollar, market awaits FOMC
The gold price once again failed to benefit from the relatively weaker dollar, with the market now awaiting the outcome of the Federal Reserve’s last meeting before the summer break.

Spot

Gold Prices Steady; Some Safe-Haven Buying
Gold prices steadied on the London spot market Tuesday, as another tumultuous day on the Chinese stock market worried investors and fuelled some safe-haven buying.

The London spot gold pri

Islamic Finance Must Adapt to the New Dynamics
The 19th Annual World Islamic Banking Conference (WIBC 2012) set to gather more than 1200 industry leaders from over 50 countries to chart new growth map The global Islamic finance industry has witn

Takaful: going hand in hand
Insurance enables households and corporations to live and operate in a stable environment. It facilitates economic transactions by providing risk transfer and indemnification. It also promotes financ

GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend

Poll

Which of the following do you think is the best long-term investment?