Trade Arabia XML Feed

NBAD celebrates Earth, World Turtle Day

Sun, 29 Apr 2012 14:41:01 GMT

The National Bank of Abu Dhabi (NBAD) joined Emirates Wildlife Society in cooperation with the World Wide Fund for Nature (EWS-WWF) in celebrating Earth Day and World Turtle Day.

The bank’s support for these events is a result of its aim to promote sustainability causes and aid movements protecting planet earth, a statement from NBAD said.

“Supporting Earth Day and World Turtle Day is in line with the bank’s corporate sustainbility responsibilty objectives,” said Belinda Scott, the senior manager of CSR at NBAD. “Therefore, it supports intiatives that preserve nature, promote responsible use of valabule resources, and projects that would create greater awarness in the community regarding major environmental issues.”

NBAD has orgnised e-waste campagains for its staff which will allow them to donate their electronic waste such as mobile phone and laptop to be properly recycled without poisining landfill, in line with the aims of EWS-WWF Marine Turtle Conservation project.

“Our main objective is to create awareness among our people and provide them with the right tools and options where they can support NBAD’s strategy and contribute in the protection of the environment,” said Scott. “E-waste contains hazardous components and when it is not recycled properly it contaminates the envorionment which affects health in the long term,” Scott said.

“Although this approach may not completely stop e-waste effects, however it will help to reduce the negative impacts on the health and environment,” she added.

NBAD has become a platinum member to the EWS-WWF, a commitment for three years under which the bank will fully support all activities and events.

The bank recently joined millions globally on Eath Hour movement, which aims to highlight the significance of global warming and other environmental issues by encouraging individuals and organisations to turn off their lights for 60 minutes.

NBAD is the first bank in the UAE to publish an annual Sustainability Report, this year marking the third consecutive year of publication, due to be released with its Annual Report. – TradeArabia News Service

Dubai's approach cheers bond investors

Sun, 29 Apr 2012 14:41:01 GMT

Healthy demand for Dubai's first sovereign bond issue in nearly a year shows how pleased investors are by the emirate's strategy of scrupulously honouring its public debt obligations while playing hardball in restructuring bank loans.

Dubbed "burn the banks, bail out the bond holders" by investment bank Exotix, the strategy seems to involve doing what it takes to ensure bond maturities of government-related enterprises (GREs) are repaid on time.

In February a unit of Dubai Holding, owned by the emirate's ruler, said it was using internal cash flow to fully repay a maturing $500 million sukuk.

At the same time Dubai is becoming increasingly forceful in pressing banks to restructure syndicated loans. This month Dubai Drydocks World began using a special tribunal, created under a decree by Dubai's ruler, to force creditors to sign up to its $2.2 billion debt plan.

Making loan holders bear most of the pain of bringing Dubai's $76 billion GRE debt pile under control is good news for bond holders, and it aided the emirate's sale of $1.25 billion of sovereign sukuk this week.

The $600 million five-year tranche, yielding 4.90 percent, was priced largely in line with Dubai's existing paper, suggesting little or no new-issue premium.

The $650 million 10-year tranche, yielding 6.45 percent, did carry a premium, of about 35 basis points over Dubai's existing sovereign bond maturing in 2020. But that is not a large premium given the fact that Dubai still does not have a sovereign credit rating, adding to its perceived riskiness in the eyes of some investors.

Dubai's Department of Finance said over 260 investors placed orders for both tranches combined of over $4.5 billion. That compares with bids of $1.8 billion for Dubai's issue last year of a $500 million, 10-year conventional bond, which included a five-year put option; this year's 10-year tranche had no put option.

"We have been able to reduce our cost of funding by 0.7 percent in the five years and 1.30 percent in the 10-year maturity compared to our previous issuances for similar tenors," the Department of Finance said.

The large size of the 10-year tranche in this week's issue illustrates Dubai's drive, since its corporate debt crisis hit in 2009, to reduce the risks of another crisis by extending its maturity profile.

"It is evident that part of Dubai Inc's broader financing strategy is to extend the maturity profile of the debt, which helps the emirate achieve a better match between its assets and liabilities in terms of tenor," said Chavan Bhogaita, head of the markets strategy unit at National Bank of Abu Dhabi.

"International investors are likely to derive comfort from the fact that Dubai is taking a much more 'seasoned' approach to its funding in terms of tenor, pricing and structure, and this is reflected in the appetite that we are seeing for Dubai credit in general."

The Department of Finance said: "We continue to examine ways to optimise our funding strategy by diversifying our funding options and extending maturities."

Proceeds of this week's issue will be used to cover the budget deficit and refinance debt, a senior government official told Reuters without being more specific. Part of the success of the issue is due to strong demand for sukuk from Islamic investors in the Gulf, encouraged by the good secondary market performance of sukuk relative to conventional bonds during the global financial crisis. If Dubai had chosen a conventional bond format, it might not have been able to attract such large orders, and pricing might have been slightly more expensive for it.

Dubai's choice of a sukuk format "is to allow for wider distribution. There is a large pool of sharia-compliant investors - both within the region and outside - that is looking for yield and is relatively starved of alternatives," said Biswajit Dasgupta, head of treasury and trading at Invest AD in Abu Dhabi.

The Gulf region has issued nearly $10 billion of bonds so far this year, with just under half of total issuance in the form of sukuk. The UAE has been the biggest issuer of international Islamic bonds this year, accounting for over 70 percent of the total.

About 70 percent of Dubai's five-year tranche was distributed to accounts in the Middle East, and 60-65 percent of the 10-year tranche, according to IFR, a Thomson Reuters service. Asia took only about 7-9 percent of each tranche, apparently because of the lack of a rating.

A low level of concern about Dubai debt maturities is likely to persist for several years. The International Monetary Fund estimates debt maturities for Dubai and its GREs in 2012 at about $15 billion; this week's bond prospectus says the Dubai government faces the maturity of 6.5 billion dirhams ($1.8 billion) of "direct public notes" in 2013.

A more daunting refinancing hump lies in 2014, when over 7 billion dirhams of direct public notes will come due and $20 billion in emergency money borrowed by the government from Abu Dhabi during the 2009 crisis will also mature. -By Mala Pancholia and Rachna Uppal - Reuters

Dubai sukuk 'enough to manage budget gap'

Sun, 29 Apr 2012 14:41:00 GMT

Proceeds from Dubai's new $1.25 billion, two-tranche Islamic bond provide enough funds for the emirate to manage its budget deficits and refinancing plans, a senior government official said.

Dubai priced on Wednesday a $600 million 5-year tranche at 4.9 percent and a $650 million 10-year tranche at 6.45 per cent and the department of finance said the issues drew orders of more than $4.5 billion.

'This sukuk issuance provides us enough liquidity to manage our budget deficits and refinancing plans proactively,' Abdulrahman al-Saleh, Director General at Dubai's Department of Finance said in a statement.

'We continue to examine ways to optimize our funding strategy by diversifying our funding options and extending maturities,' he said.

Saleh noted Dubai had been able to reduce its cost of funding on the sukuk, compared to previous debt issuance of similar tenors.

The emirate is still restructuring some debt at state-linked firms, including two significant maturities in 2012 from Jebel Ali Free Zone (Jafza) and DIFC Investments, which have to repay a combined $3.25 billion this year.

Its biggest restructuring - a $26 billion debt deal at flagship conglomerate Dubai World which rattled global markets in November 2009 - was signed in 2010.

Dubai has been recovering from the depths of its 2009-2010 debt crisis helped by strong trade flows with Asia, tourism and its safe-haven status amid a wave of social unrest in the Mena region last year.

'Investors were happy with the steps taken by the government over the last three years to counter the impact of financial crisis and prudent measures to control costs and manage its budget deficit,' Saleh said.

The emirate's budget deficit narrowed sharply to Dh3.7 billion ($1 billion) last year, helped by higher oil income and lower spending on development projects, a prospectus for the latest sovereign bond showed this week.

That represents 1.2 per cent of 2010 gross domestic product, according to Reuters calculations. GDP data for 2011 has yet to be released. A shortfall of Dh1.8 billion is planned for 2012, the prospectus reiterated.

Dubai's direct government debt stood at Dh113.6 billion ($30.9 billion) at the end of March, the prospectus also showed. However, analysts polled by Reuters in March put the emirate's overall debt including government-owned firms at an estimated $118 billion, or 144 per cent of GDP.

The Gulf trade and business hub, which accounts for nearly a third of the UAE's GDP, is aiming for economic growth of 4.5 per cent this year, up from an estimated expansion of more than 3 per cent in 2011, Dubai's top official said in February.

But the worsening global financial conditions could make it more difficult to roll over some of the maturing debt of UAE government-linked entities, the International Monetary Fund said in March, with about $32 billion of sovereign and government-linked debt estimated to mature in 2012, of which $15 billion in Dubai.-Reuters

Daman opens claims database for members

Sun, 29 Apr 2012 14:41:00 GMT

The UAE National Health Insurance Company (Daman) has announced that its 2.1 million members have been given access to their insurance claims history.

Designed to promote transparency and generate member awareness on health insurance costs, the service is the first to be offered by a health insurer in the region.

The online database – accessible through the members’ online profile – will allow members to review their claim history, encouraging users to become more involved in their insurance practices.

Daman CEO Dr Michael Bitzer said: “Daman’s online claim database service is an incredibly unique offering, and we are proud to be the first health insurance provider in the region to launch such an initiative. This is an innovative concept for the insurance industry, and one that promotes transparency while working to curb insurance fraud and abuse.”

Upon accessing the claims database, members will see the number of claims made, overall cost of claims spent on their policies for the year and their share of payments, he stated.

Each year is broken down into quarters, each with its claims amount summary, and finally each quarter’s activity is presented in a report.

The report includes information on costs of treatment and medications, name of the medical service provider or pharmacy claiming on behalf of the member and the claim reference number for members to use for enquiries. Each report can be printed or downloaded as a PDF file, Dr Bitzer noted.

Online claim referencing works seamlessly with Daman’s award-winning online services, which include and advanced system for submission and tracking of claim reimbursements. The database is accessible over a secure connection to protect this sensitive information.

Commenting on the feat, Daman chief services officer Peter Bauer said, 'Offering members access to our intricate database through a website interface was a lengthy, difficult process; especially when taking online security into account.'

Up to three years of claims history are available on the website, he added.-TradeArabia News Service

CBB backs students' stock trading programme

Sun, 29 Apr 2012 14:41:00 GMT

Central Bank of Bahrain (CBB) Governor Rasheed Al Maraj has vowed to support TradeQuest and other initiatives and programmes that contribute to developing the skills of the youth and better prepare them for the job market.

He was speaking as he attended with Bahrain Bourse vice-chairperson Afnan Al Zayani the final TradeQuest Awards Ceremony at the Crowne Plaza hotel yesterday, where 46 students who took part in the simulated stock trading programme "TradeQuest Challenge" were honoured.

The ceremony was attended by students and their families, senior representatives from sponsoring organisations and guests.

TradeQuest is a simulated business-education partnership programme that focuses on investment trading in world financial markets, which operated for the first time in Bahrain in 1996 in co-operation with financial and educational institutions.

The programme is geared to give high school students close-to-life experience in the stock markets, with focus on understanding the rules and regulations, the analysis and selection of stocks, and portfolio management for equities listed on the New York Stock Exchange and Bahrain Stock Exchange.

Al Maraj emphasised the CBB's support to the programme and congratulated the students for their commitment, and hailed the efforts they have put in since its start in October 2011.

He also praised the role of Bahrain Bourse and other sponsoring organisations.

Al Zayani hailed the efforts of the students and appreciated the support and encouragement that they have received from their families and school officials.

She assured that the Bourse's ownership of the programme comes in line with one of its strategy focuses that aims to spread investment awareness.

"The TradeQuest Challenge is one of the programmes that seeks to achieve this objective," she said.

Al Maraj presented this year's trophy and overall winner award to Ibn Khuldoon National School. Al Naseem International School bagged the second prize while Al Noor International School came third.

During the ceremony, Ibn Khuldoon National School received the certificate for "Best Financial Performance" and "Highest Return" at the virtual stock exchange.

St Christopher's School received the certificate for "Lowest Volatility" at the virtual stock exchange and "Best Financial Performance" at Bahrain Bourse.

Abdul Rahman Kanoo International School received the certificate for "Highest Return" at Bahrain Bourse. Al Naseem International School won the certificate for "Lowest Volatility" at Bahrain Bourse, and "Best Presentation".-TradeArabia News Service

SEIB to participate in Project Qatar

Sun, 29 Apr 2012 14:40:59 GMT

SEIB Insurance and Reinsurance Company (SEIB) has announced its participation in the ninth edition of Project Qatar, a major engineering and construction solutions event.

“Project Qatar 2012 is the ideal platform for us to directly communicate with stakeholders and potential customers,” said Farid Chedid, SEIB’s chief executive officer of SEIB.

“In the past year, we have introduced products and services relevant to the construction and engineering sector, and we are excited to share our offerings face-to-face to the attendees. These include engineering insurance, professional indemnity insurance, inherent defects and liability insurance, workman compensation, as well as other products.”

Authorised by the Qatar Financial Center Regulatory Authority, SEIB provides tailor-made corporate and retail insurance solutions, and is especially known for handling complex risk cases, a statement said.

Project Qatar is running from April 30 to May 3 at Doha Exhibition Center. – TradeArabia News Service

Islamic finance rules set for major review

Sun, 29 Apr 2012 14:40:59 GMT

Islamic finance may face its biggest shake-up in years as a top standard-setting body seeks to reform the way the industry does business, including the role of highly paid scholars in enforcing religious principles.

Khaled Al Fakih, the new secretary-general of the Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI), outlined plans for a sweeping review of its guidelines in an interview with Reuters.

Some of AAOIFI's reforms may prove controversial by challenging entrenched interests in the fast-growing business. Islamic financial assets hit $1.3 trillion globally last year, a 150 percent rise in the past five years as the industry expanded beyond core markets in the Middle East and Malaysia, financial lobby group TheCityUK estimates.

"We would like to see insightful debate...that can help us develop standards that can benefit the industry," Fakih said by email from Bahrain, ahead of AAOIFI's annual meeting there on May 7 and 8.

His organisation plans to start consultations on reforming the operations of sharia boards, the groups of Islamic scholars which rule on whether financial institutions' activities and products are religiously acceptable, by the middle of this year.
A final draft of the reforms is not expected to be ready before the end of next year at the earliest.

AAOIFI will also work on a new framework for disclosing financial data, and will look at revising standards for takaful (Islamic insurance), investment accounts and other products.

Fakih, a Lebanese-born commercial banker who took over at AAOIFI in February, said basic elements of Islamic finance such as murabaha, mudaraba and ijara - structures designed to permit investment while obeying religious bans on paying interest and pure monetary speculation - would be reviewed next year.

For many in the industry, AAOIFI's review cannot come too soon. Although far smaller than conventional banking, which has tens of trillions of dollars of assets, Islamic finance has grown much more quickly in the last few years, so its flaws could start to affect banking systems and economies.

Much of its growth has occurred because it can count on the support of large pools of sharia-compliant funds in the booming Gulf and southeast Asia, which have not pulled back during the global financial crisis as Western funds have.

Last year's Arab Spring uprisings in the Middle East promise a fresh wave of growth; new, Islamist-led governments want to promote the industry after their authoritarian predecessors discouraged it for ideological reasons.

But the growth has exposed weaknesses in Islamic finance.
One is the lack of a clear consensus on what products and procedures are permissible; the sharia boards of individual banks and investment firms can issue conflicting rulings.

This can create big controversies. When Goldman Sachs announced last October that it planned a $2 billion sukuk issue, which would make it one of the first top Western banks to raise money in that way, its own sharia advisors approved the plan.
But some other scholars criticised it; six months later, the sukuk has not been issued and it is not clear when it might be.

The sharia board system is open to accusations of conflict of interest because scholars are paid handsomely - in some cases, with hourly fees of $1,000 or more - by the very firms whose behaviour they are supervising.

The ambiguity in regulation has let some Islamic financial institutions, such as Kuwait's Investment Dar, argue in court that contracts into which they had entered were not valid because they were not sharia-compliant in the first place.

AAOIFI plans to improve the operations of sharia boards by strengthening the certification process for scholars, Fakih said. The organisation currently offers scholars two professional credentials, but they have been criticised as not sufficiently rigorous and too easy to obtain.

In addition, AAOIFI is developing new guidance on the relationship between Islamic financial firms and their sharia boards, "similar to international best practices on terms of reference for financial institutions' board of directors".

One way to reduce conflicts of interest might be to limit the length of scholars' tenure at individual firms, to prevent them from forming excessively close relationships with their employers that might compromise their objectivity. However, Fakih did not mention this idea. Current AAOIFI standards acknowledge "engagement over a prolonged period of time may pose a threat to independence", but do not prescribe specific limits.

AAOIFI will also look at ways of fostering the rise of a new, younger generation of Islamic scholars, through steps such as training courses, Fakih said. This could remove a bottleneck to growth in the industry by loosening the dominance of about two dozen veteran scholars who have practiced for decades and hold multiple board positions.

It is not yet clear whether reformers in AAOIFI will be able to push through changes over the potential opposition of many veteran scholars and financiers who profit from the status quo.

Yasser Dalhawi, chief executive of Syariah Review Bureau, an Islamic finance advisory firm in Saudi Arabia, said change would be difficult. But he added that many people in the wider industry would support change as a way of ensuring growth and bringing Islamic finance closer to its religious principles.

A survey of customers' attitudes to sharia boards, conducted a few years ago by a Gulf financial firm, found widespread dissatisfaction which was expressed in some cases with expletives, one prominent scholar told Reuters, declining to be named because of the sensitivity of the issue.

To balance opposition to change within AAOIFI, Fakih seems to want to involve the widest possible range of industry interests in the debate; he called for "rigorous and meaningful discussions...not only among scholars but also with all participants of Islamic finance."

His plans to release a series of draft proposals for public consultation mark a change from AAOIFI's past style, which relied more on decisions made behind closed doors.

In its review, AAOIFI is also expected to discuss strengthening enforcement of its standards across the globe. They are not backed by any legal sanction, so national financial regulators decide whether to enforce them. - Reuters

GIB net income up 23pc to $31.8m

Sun, 29 Apr 2012 14:40:59 GMT

Gulf International Bank (GIB) reported a consolidated net income after tax of $31.8 million for the three months ended March 31, 2012, a $6.0 million or 23 per cent rise in the comparable prior year period.

Year-on-year increases were recorded in all income categories. Net interest income at $31.9 million for the three months was $0.6 million up on the prior year period, a statement from the bank said.

A reduction in the loan volume during the first quarter of the year was offset by an increase in loan margins as the bank re-orientates its lending activity from transactional-based long term project and structured finance to relationship-based large and mid-cap corporates.

In March, Fitch Ratings upgraded GIB’s viability rating to ‘BBB-’ from ‘BB+’ to reflect “the significant improvement to its risk profile from restructuring, de-risking and de-leveraging initiatives”.

Fee and commission income at $15.4 million was $0.8 million or 5 per cent higher than in the prior year period. As a result, fee-based income comprised almost one quarter of total income, reflecting the successful implementation of GIB’s new strategic focus on non-asset-based, relationship-orientated services and on supporting customers’ commercial and trade finance requirements.

In particular, a significant year-on-year increase was recorded in commissions on letters of credit and guarantee. Trading income at $8.1 million for the quarter was $4.1 million up compared to the prior year period.

This was due to a year-on-year increase in customer-related foreign exchange revenue as well as profits on investments in emerging market debt.

Other income of $6.4 million was $2.9 million up on the prior year. It comprised dividends on equity investments, profits realised on the sale of investment securities, and recoveries of impaired loans.

Total expenses at $30.1 million for the three months were 11 per cent up on the prior year period. The year-on-year increase in expenses reflected ongoing investment in the implementation of GIB’s new GCC-focused universal banking strategy. A net provision release of $0.5 million was recorded in the first quarter. The absence of any provisioning requirement reflected prudent and conservative provisioning actions taken in prior years.

Jammaz Al-Suhaimi, chairman, GIB, said: “We are pleased to report continued profitability growth in the first quarter of 2012 despite the initiatives we took in the past couple of years to de-risk the wholesale lending portfolio and improve the funding profile of the bank, while at the same time investing in its future through new strategic initiatives.”

Consolidated total assets at the quarter end were $18.5 billion, being $1.7 billion or 10 per cent higher than the 2011 year end level.

Cash and other liquid assets, and short term placements totalled $8.2 billion, representing a high 44 per cent of total assets, the statement said. Investment securities at March 31, which principally comprised highly rated and liquid debt securities issued by major financial institutions and regional government-related entities, amounted to $3.6 billion.

Loans and advances amounted to $6.3 billion, being $0.4 billion lower than at the 2011 year end level. There was a further improvement in the bank’s funding profile in the first quarter of 2012 with a $1.3 billion increase in customer deposits and a $0.3 billion increase in bank deposits.

The high level of liquidity was partially being maintained in preparation for the repayment of a $1.2 billion term loan in May, it said.

The Basel 2 total and tier 1 capital adequacy ratios at the end of the quarter were 22.9 per cent and 18.6 per cent respectively.

GIB is a leading bank in the Middle East with its principal focus on the GCC states. It is owned by the six governments, with the Public Investment Fund of Saudi Arabia holding a majority stake of 97.2 per cent.

In addition to its main subsidiary Gulf International Bank (UK), it has branches in London, New York, Riyadh and Jeddah, in addition to representative offices in Beirut and Abu Dhabi. – TradeArabia News Service

37pc of top Dubai SMEs pick Emirates NBD

Sun, 29 Apr 2012 14:40:59 GMT

Emirates NBD, a leading bank in the region, has announced that it was the preferred banking partner for 37 of the 100 top performing SME organisations in Dubai (Dubai SME 100).

This includes three of the top ten Dubai SME 100 companies - Mepco Gulf co, Enerplastics and Mani Foods Ind.

Emirates NBD’s Business Banking Division has also registered a 32 per cent increase in income since 2008, while its loan book size has grown by 20 per cent, according to a statement from the bank.

“Emirates NBD is honoured to be a strategic partner of Dubai SME 100, because we strongly believe that small and medium enterprises hold the key to future economic growth in the UAE,” said Vikas Thapar, head of Business Banking, Emirates NBD.

“The wide range of our SME-focused products and services, have enabled us to garner more than 30 per cent market share of SME business relationships in the UAE, and 37 per cent of the top SMEs in the country have close associations with the bank.”

A premier ranking of Dubai's 100 top-performing small and medium enterprises, Dubai SME 100 was launched in 2011 by the Mohammed Bin Rashid Establishment for SME Development (Dubai SME).

As a strategic partner of Dubai SME 100, Emirates NBD offers Dubai’s top SMEs exclusive benefits including competitive foreign exchange and telegraphic transfer (TT) rates, preferential rates on trade services, preferential rates for online transactions through smartBUSINESS, special rates on deposits and investments and the highest number of free or discounted charges on day to day transactions, said a statement. – TradeArabia News Service

Dubai Islamic posts $66.7m Q1 profit

Sun, 29 Apr 2012 14:40:58 GMT

Dubai Islamic Bank (DIB) today reported a net profit of Dh245 million ($66.7 million) for the first quarter, an increase of 11 per cent compared to Dh222 million during the same period of 2011.

The bank demonstrated sustained growth across its core operations, said a statement.

DIB reported a total revenue of Dh1.23 billion compared to Dh1.28 billion in the first quarter of 2011.

As of March 31, 2012, the bank’s total assets stood at Dh92.5 billion; customer deposits stood at Dh68.1 billion, an increase of 5 per cent compared with Dh64.7 billion as of December 31, 2011.

The bank’s core business continued to grow in the first quarter of 2012, with income from financing and investing assets and investment sukuks increasing by 2 per cent, it said.

DIB maintained a financing-to-deposit ratio of 77 per cent as of March 31, 2012, providing a clear indication of the bank’s strong liquidity position. The bank also reported a robust Basel II capital adequacy ratio of 18.2 per cent as of March 31, 2012. DIB continued to strengthen its balance sheet with additional provisions of Dh299 million during the first quarter of 2012.

“DIB’s strong start to the year is testament to the bank’s proven business model, robust liquidity position and stable funding base,” said Mohammed Ibrahim Al Shaibani, chairman. “The recent repayment in full of a $750 million five-year Sukuk further underlines the bank’s financial strength, and positions DIB to continue playing a full and active role in the on-going economic development of the UAE.”

DIB opened three new branches during the first quarter of 2012, taking its UAE-wide network to a total of 74 branches. The quarter also saw the launch of Al Islami Business Online, a portal enabling companies to access over 75 services at the click of a button.

“DIB has begun 2012 where it left off in 2011 by reporting strong and sustained growth across its core operations,” said Abdulla Al Hamli, chief executive officer of DIB. “Our continued investment in both bricks and mortar and alternative distribution channels has served to further reinforce DIB’s status as the UAE’s leading Islamic bank.” - TradeArabia News Service

Kuwait Finance House Q1 profit falls 11.5pc

Thu, 26 Apr 2012 09:02:02 GMT

Kuwait Finance House (KFH) , the country's biggest Islamic lender, reported on Thursday an 11.5 per cent decrease in first-quarter net profit, missing analysts estimates.

Net profit fell to KD20 million ($72 million) from 22.6 million dinars in the same period a year ago, the lender said in a bourse filing.

Analysts in a Reuters survey had predicted 23.48 million dinars net profit on average for the quarter to end-March.

The bank said in March it would shuffle its top management and work with advisors to sell, merge or restructure unprofitable subsidiaries.

KFH's shares closed at 740 Kuwaiti fils on the bourse on Wednesday. - Reuters

Burgan Bank Q1 profit hits $63m; up 48pc

Thu, 26 Apr 2012 09:02:01 GMT

Burgan Bank Group has reported KD17.5 million ($63.1 million) net profits for the first quarter of 2012, marking a growth of 48 per cent, compared to KD 11.8 million for the same period in 2011.

Earnings per share increased to 11.9 fils compared to 7.8 fils for the same period in 2011.

Revenues has reached to KD 42.6 million reflecting a growth of 10 per cent from KD38.8 million reported in the first quarter of 2011. Operating profit grew by 15 per cent to reach KD 26.6 million compared to KD23 million for the same period in 2011.

Customers’ deposits grew to KD 3,040 million, a 9 per cent increase from year ended on December 31, 2011, while loans grew by 7 per cent reaching KD2,406 million.

The consolidated financials include the results of the group’s operations in Kuwait as well as its subsidiaries, namely Jordan Kuwait Bank, Gulf Bank Algeria, Bank of Baghdad, Tunis International Bank, in which Burgan Bank has a majority stake. During the first quarter of 2012, the subsidiaries have demonstrated a steady growth path and maintained profitability.

Majed Essa Al-Ajeel, chairman of Burgan Bank Group said: “We are pleased with our results during the first quarter of the year. Our financial performance continues to be solid, and the Group demonstrates a consistent growth trend across its operations despite the slow economic growth in the region."

“Burgan Bank Group’s conservative strategy, prudent risk approach, and sustainable financial performance helped maintain the group’s overall position locally as well as regionally. The group announced earlier that it has entered into an agreement with Eurobank EFG to acquire a 99.26 per cent stake in Eurobank Tekfen, Turkey.”

“The final execution of the transaction is subject to regulatory approvals from Central Bank of Kuwait (“CBK”) and Turkey’s Banking Regulation and Supervision Agency (“BRSA”). The value of this transaction reflects a clear strategic approach, where Burgan Bank Group acquired an existing and leading banking platform that enjoys an extensive network of 60 branches across vibrant areas in Turkey, with a total price that equates to the cost of obtaining a license for an initial operational start-up,” added Al-Ajeel.

“On behalf of the board, I take this opportunity to thank our customers and shareholders for their confidence in our capabilities. Also to thank our executive management team for their leadership and the excellent execution of the corporate strategy, and to our staff for their continued support and commitment,” concluded Al Ajeel. – TradeArabia News Service

EFG Hermes, QInvest agree merger terms

Thu, 26 Apr 2012 09:02:00 GMT

Egypt's EFG Hermes has finalised talks to sell a 60 percent stake to Qatari QInvest, a deal aimed at merging some of the operations of the Middle East investment banks, independent Shorouk newspaper said.

The merger between the two is intended to create an investment bank covering the Arab world, Africa, Turkey and southeast Asia, the paper said.

"The negotiations began months ago and the deal will be announced in the next 10 days," a source with knowledge of the deal told the paper without giving details of the value of the deal.

The venture would include securities brokerage, asset management and investment banking operations, but not EFG Hermes Private Equity, the paper said.

No one was available for comment at EFG Hermes because of a national holiday, and no one could be reached at Qinvest.

EFG Hermes, Egypt's biggest investment bank, has a market value of $1.08 billion and runs offices in nine Arab countries. It also controls a 65 percent stake in privately owned Lebanese bank Credit Libanais, which it bought in 2010 for $542 million.

QInvest has a paid-up capital of $750 million and offices in Qatar, Turkey and Saudi Arabia, its website says. Its shareholders include Qatar Islamic Bank, other institutional investors and high net worth individuals. -Reuters

Emirates NBD Q1 net profit down 55pc

Thu, 26 Apr 2012 06:17:41 GMT

Emirates NBD, a leading bank in the region, said its net profit for the first quarter in 2012 was down 55 per cent to Dh641 million ($174.5 million) compared to the same period last year.

The bank had made a profit of Dh1.413 billion in Q1 last year, aided by a Dh1.835 billion one-off gain from the stake sale of Network International.

Announcing the results for the quarter ended March 31, the Dubai lender said its total income increased by 19 per cent to Dh2.68 billion compared to Dh2.26 billion the previous year and grew by 8 per cent compared to Dh2.49 billion over the last quarter.

Compared to the fourth quarter of 2011, Emirates NBD said its net profit more than tripled due to the improved operating performance witnessed during the current quarter and the absence of further impairments on associates and investment properties.

The bank's net interest income for the quarter improved by 8 per cent to Dh1.77 billion from Dh1.64 billion during the same period the previous year but declined by 8 per cent compared to Dh1.92 billion in Q4 2011 driven primarily by a normalisation of the net interest margin to 2.63 per cent from 2.85 per cent in the previous quarter, said a statement from Emirates NBD.

The expected reduction in the net interest margin arose primarily from loans re-pricing to lower Eibor rates and from the negative mix impact of an improved funding profile, the statement added.

According to the Dubai lender, the non-interest income recorded a year-on-year increase of 49 per cent to Dh909 million in Q1 2012.

Although the improvement was aided by higher positive income on investment securities and the absence of write-downs on investment properties, core fee income also grew strongly by 17 per cent and 14 per cent compared to last year and Q4 2011 respectively, driven by increased foreign exchange income and a pickup in trade finance activity, it added.

The total costs in first quarter amounted to Dh942 million, an improvement of 8 per cent over the previous quarter resulting from lower non-staff costs.

As a result, the cost to income ratio for Q1 2012 of 35.1 per cent improved relative to 41.1 per cent reported in Q4 2011, the bank said.

Commenting on the Group’s performance, Emirates NBD chief executive officer Rick Pudner, said: “During the first quarter of 2012 we have continued to deliver stable and robust financial results, reflecting the strength of our business model and cementing our position as the region’s leading banking group.'

'Whilst uncertainties and challenges remain in the global economic environment, we remain confident about the strength and capabilities of Emirates NBD to continue to realise more success and our ability to capitalise on value-adding opportunities for our shareholders,' he noted.

The customer loans as of March 31 2012 (including Islamic financing) were broadly stable compared with end-2011 levels at Dh204.1 billion, while customer deposits witnessed a surge of 8 per cent to hit Dh208.5 billion over last quarter, said the official.

According to him, the loan to deposit ratio improved in Q1 2012 to 98 per cent from 105 per cent at the end of 2011.

Chief financial officer Surya Subramanian said the operating performance for the first quarter had been particularly strong as evidenced by the acceleration of top-line growth while at the same time showing improved operating efficiency relative to the previous quarter.

The bank, he said, has also continued to optimise its balance sheet during the quarter through its focus on growth in stable low-cost deposits and the issuance of more than Dh7 billion in medium term liabilities.

The contribution of the Bank’s investments in associates and joint ventures during Q1 2012 amounted to Dh24 million compared to negative contributions of Dh477 million and Dh228 million in Q1 2011 and Q4 2011 respectively.

The negative contribution in comparative quarters was principally driven by the impairments recognised on the Bank’s investment in Union Properties during those quarters. Further impairments on the investment in Union Properties were not required in Q1 2012 as the Bank is comfortable with the current book value of Dh532 million, he pointed out.

On the 2012 outlook, Pudner said, 'During the first quarter the UAE economy has continued to display resilience to global uncertainty, underpinned by a continued increase in oil output and strength in the trade, logistics, tourism and retail sales sectors. Nevertheless, the external environment remains challenging and the Bank maintains its cautious outlook.'

'However, Emirates NBD’s capitalisation, liquidity and operating profitability remain extremely strong offering both resilience and flexibility for the future. In addition, the Bank has a clear strategy in place to further enhance shareholder returns and take advantage of the selected growth opportunities,' said Pudner.

'This strategy is built around further optimisation of the balance sheet and capital allocation; driving income growth and profitability through key account planning, cross-selling and customer service enhancement initiatives; enhancement of platforms; and measured investment in key growth areas,' he added.-TradeArabia News Service

GIB boost as Moody's reaffirms key ratings

Thu, 26 Apr 2012 06:17:40 GMT

The international credit rating agency Moody's Investors Service has reaffirmed Gulf International Bank's (GIB) long-term and short-term foreign currency deposit ratings of A3 and P-2 respectively.

Moody's said in its report that GIB's solid capital base, high liquidity and improving funding profile have led to the rating reaffirmation.

"The rating is supported by the bank's strong capital base (Tier 1 of 19.2 per cent as at year-end 2011) and robust funding and liquidity profile, which has materially improved in the past few years.

"The bank's ownership by the Saudi government (Aa3 stable) is a key factor in its standalone credit strength, helping business origination and funding," Moody's stated.

The rating agency also pointed out that GIB has a new sound business strategy, which aims at restructuring its current business and expanding its product base and franchise in the GCC.

"GIB has been reorienting its focus away from longer-term, lower-yielding project finance and syndicated exposures towards shorter-term bilateral loans to regional corporate and mid-corporate segments," Moody's said.

"The bank's strategy entails greater focus on yield and on cross-selling of higher value-added services through its team of relationship managers.

"The new strategy also adds a niche regional retail banking operation to restructured wholesale banking activities," it added.

In Moody's opinion, GIB's efficiency continues to be very high despite the additional costs resulting from investments in the implementation of the new strategy.

The bank's cost-to-income ratio during 2011 was a solid 53.1pc (the 2008-2010 average was 44.2pc).

One of the major drivers in the rating reaffirmation is GIB's improving funding profile. Moody's said in its report that the bank "maintains a strong funding and liquidity position, benefiting substantially from its Saudi government ownership.

"Government ownership (and availability of support that this implies) assists the bank in sourcing wholesale funding from companies, government-related entities and financial institutions and positively influences both the stability and the cost of this funding," it added.

The agency said that the "lengthening of the maturity of GIB's funding base and parallel shortening of the maturity of its loan book has led to an improvement in the bank's funding profile.

"The bank has taken further advantage of its ownership to raise substantial amounts of medium-term funding at low cost from the Saudi market, further strengthening its liquidity management.

"The bulk of longer term loans are now primarily funded by the bank's significant capital and term funding resources," it added.

"We believe Moody's reaffirmation of the bank's ratings is a very significant achievement and an independent endorsement of its efforts and the actions taken over the past few years to restructure operations and improve profitability and funding," GIB's chief executive Dr Yahya A Alyahya said.-TradeArabia News Service

Mena M&A deals plunge 40pc in Q1

Thu, 26 Apr 2012 06:17:40 GMT

The mergers & acquisitions (M&A) deals announced in the Mena region dropped by 40 per cent in value to $8.5 billion during the first quarter of 2012 from $14.1 billion last year, said a report.

The volume of announced M&A deals increased by 7 per cent, from 98 deals last year to 105 deals in the first quarter this year, according to Ernst & Young’s Mena mergers & acquisitions update.

The E&Y in its report said compared to the previous quarter which saw announced deals worth $7.2 billion, the total M&A deal value ($8.5 billion) in the first quarter of this year jumped by 18.1 per cent. However, the average announced deal size was $242.9 million, down 34.7 per cent from $372.1 million last year.

Phil Gandier, Mena head of transaction advisory services at E&Y said, “We are still seeing a level of caution in the regional markets. Overall, the positive news from the 2012 Q1 M&A numbers is that the start of this year has been better in comparison to the start of 2011.”

“A total of 19 sovereign wealth and private equity deals took place in Q1 2012, with 10 deals in the month of March alone. This could mean that private equity players, who are usually the first movers in M&A, are taking comfort from upward revisions of regional economic growth projections and are gaining in transaction confidence,” he stated.

According to Phil, the top 10 deals in Q1 were valued at $7.27 billion or 85.5 per cent of the total regional M&A deal value. Of these, five are outbound (regional business buying international assets), three are domestic (regional business buying regional assets) and two are inbound (international business buying regional assets), he noted.

The top two deals by value were both worth $2 billion and involved UAE sovereign wealth funds and private equity firms buying global assets, the E&Y report said.

These deals were Mubadala Development’s acquisition of Brazil’s Grupo EBX and Centurion Investment Company’s acquisition of India’s UAE Exchange & Financial Services.

The third spot went to France Telecom which bought a $973 million stake in Egyptian Company for Mobile Services. The fourth and fifth spots were occupied by Qatari investors buying UK and UAE assets, the report said.

These include the $525 million announced deal of Qatar Investment Authority buying One Cabot Square in the UK, and Mannai Corporation’s $445 million investment in Damas International respectively.

On the outbound deals, the E&Y said with a disclosed deal value of $5.5 billion, the deals made up 64.7 per cent of M&A transactions in Q1 2012.

“Regional investors continue to dominate the M&A market and continue on their path of large international investments for solid assets. This trend will continue going forward,” said Phil.

In terms of total domestic deal value in Q1 2012, the consumer products assets have replaced real estate as the most sought after sector in Mena region, valued at $572 million, said the E&Y in its update.

The real estate saw deals worth $562.1 million, followed by transportation and insurance deals worth $140 million and $125 million, respectively.

In terms of total volume of domestic deals, consumer products led with seven, followed by real estate, banking and capital markets, and diversified industrial products, all with six deals, the report added.-TradeArabia News Service

Gulf One advises on GUST refinancing deal

Thu, 26 Apr 2012 06:17:39 GMT

Bahrain-based Gulf One Investment Bank said it had advised and arranged a $23.5 million Islamic debt refinancing transaction for the Gulf University for Science and Technology (GUST), the largest private sector university in Kuwait.

The transaction was successfully closed in early 2012 with Kuwait International Bank (KIB) as the sole lender.

Gulf One said the deal, which was the first-of-its-type for the Kuwait education sector, is expected to provide a template for similar refinancing and restructuring deals.

Gulf One combined its regional network, leading structuring skills and extensive debt arrangement experience to deliver multiple benefits for GUST including a more favorable profit rate, longer tenor and better security structure, said the bank in a statement.

The role of independent advisory has always been vital in facilitating the speed and quantum of project execution; the key to success is taking a balanced approach that takes into consideration both the debtor and the obligor, it added.-TradeArabia News Service

Dubai's $1.25bn Islamic bond to price today

Thu, 26 Apr 2012 06:17:38 GMT

Dubai is planning to raise $1.25 billion from a two-tranche Islamic bond sale on Wednesday, with final price guidance for both tranches tighter than indicated initially.

The price range for the five-year portion was set at between 4.90 and 4.95 per cent and for the ten-year at between 6.45 per cent and 6.50 per cent, arranging banks said, indicating healthy appetite for the new issue.

Sources said order books were almost $4 billion when books closed at about 0830 GMT.

Each tranche will be at least $500 million.

Citi, National Bank of Abu Dhabi, Dubai Islamic Bank and HSBC are bookrunners on the deal, the emirate's first after nearly a year. It last tapped debt markets with a $500 million 10-year issue in June. – Reuters

DIB launches new 2-year Islamic certificate

Thu, 26 Apr 2012 06:17:38 GMT

Dubai Islamic Bank (DIB) has launched a two-year Islamic certificate which enables investors to capitalise on commodity market movements without tying up all of their capital.

The Al Islami Aquantum Dirham Certificate offers exposure to a diversified portfolio of 12 highly liquid and tradable commodity markets, including energy, agriculture and livestock.

The Core Index systematically takes long and short positions in selected commodity futures contracts, with the objective of profiting from relative changes between the prices of futures contracts with different maturities for the same underlying commodity.

Investors enjoy a high level of capital protection without the requirement to tie-up all their capital for the whole investment period.

Investors receive 90 per cent of their total investment within two business days from the issue date, with profit distributed at maturity based on the performance of the Index. The Certificate is denominated in UAE dirhams with a minimum investment of Dh100,000 ($27,200).

“In today’s challenging economic climate, the Al Islami Aquantum Dirham Certificate stands out as it returns 90 per cent of the investment in two working days from the issue date, while earning returns on 100 per cent of the invested amount,” said Dr Adnan Chilwan, deputy CEO - chief of Consumer & Wholesale Banking, DIB.

“The Certificate gives medium term investors the opportunity to gain exposure to a wide range of commodities, in a Sharia compliant manner and without locking up their capital.”

The Al Islami Aquantum Dirham Certificate is issued by the Royal Bank of Scotland (RBS) and will be solely distributed by DIB in the UAE.

The certificate has been approved by the Fatwa and Sharia Supervisory Board of Dubai Islamic Bank. – TradeArabia News Service

Dubai's ENBD wary of cbank loan rules

Thu, 26 Apr 2012 06:17:37 GMT

Emirates NBD is wary of new regulations limiting loan exposures to state-linked entities, Dubai's largest lender said on Wednesday, after posting first-quarter earnings that beat analysts' forecasts.

The UAE's central bank this month introduced regulations which limited lending to state-linked entitites to 100 percent of any bank's loan book, a move designed to minimise the impact of problem loans.

Chief executive Rick Pudner told a media conference call that the bank was currently assessing its exposure and would contact the UAE central bank before the September deadline.

"The rules will definitely affect our loan book. Not only for us but also for all commercial banks in the country," Pudner said. "We are currently reviewing our position and will discuss with other banks and the central bank at a later stage," he added.

The lender is among the most exposed to state-linked entities restructuring debt and has seen its loan-loss provisions shoot up in the past quarters.

Earlier on Wednesday, ENBD, 55.6-percent owned by the Investment Corporation of Dubai, posted a forecast-beating 641 million dirhams ($174.51 million) first-quarter net profit, helped by a near 50-percent rise in non-interest income and lower impairments. - Reuters

Dubai Holding unit 2011 net up on lower charges

Thu, 26 Apr 2012 06:17:36 GMT

Dubai Holding's main unit reported a 61-per cent rise in yearly profits on Wednesday thanks to lower impairment charges and the disposal of non-core assets which helped offset a decline in revenues.

Dubai Holding Commercial Operations Group (DHCOG), part of the Dubai ruler's personal business empire, posted a net profit of Dh204 million ($55.53 million) in 2011, an increase of 60 per cent compared to Dh127 million last year.

DHCOG, which comprises four business subsidiaries: Jumeirah Group, Dubai Properties Group, Tecom Investments and Emirates International Telecommunications, said its recurring revenues increased by 7 per cent to Dh6 billion, while total revenues stood at Dh8.8 billion.

Total assets of the group stood at Dh97.4 billion, while total debt decreased by Dh1.24 billion and debt-to-asset ratio improved to 0.13, and debt-to-equity ratio also improved to 0.93.

Ahmad Bin Byat, chief executive officer of Dubai Holding, said: “The positive results of 2011 demonstrate DHCOG’s resilience and strong business fundamentals across the portfolio. Despite continued challenging economic conditions globally, 2011 proved to be a good year for DHCOG. The deleveraging of our debt commitments has been one of the highlights of 2011 and will continue to be our priority in the years to come.”

“Our recurring and sustainable revenues improved by 7 per cent in 2011. Total revenues for the year amounted to Dh8.8 billion, of which Dh6 billion were recurring revenues. In line with our strategy of strengthening the recurring income streams, properties and land sales represented only 31.6 per cent of our total revenue in 2011, compared to 58.1 per cent in 2010.”

“The Group is well positioned, with long-term recurring revenues and a diverse portfolio of income-generating assets, to build on the healthy performance of our underlying businesses. We have a robust balance sheet, which provides us with the flexibility to support our businesses in delivering strong performance and revenues,” Bin Byat added.

Assets, liabilities and debt

DHCOG’s total assets stood at Dh97.4 billion. Current liabilities decreased from Dh31.2 billion in 2010 to Dh26.6 billion in 2011, down 15 per cent due to a decline in trade payables, customer advances and contractor liabilities. DHCOG concluded the year with a strong cash balance of Dh2.3 billion, an increase of 50.5 per cent compared to Dh1.5 billion in 2010.

DHCOG deleveraged its debt commitments, by paying down the CHF 250 million bonds in July 2011 through cash generated from operations and from sales of non-core assets.

It further paid down $500 million bonds which matured in February 2012. Repayment of the bonds, along with consistent and strong operating performance, triggered positive rating actions by Fitch Ratings and Moody’s Investors Service, both of which placed DHCOG on a stable outlook in February 2012.

Bin Byat added: “The company has robust hotel management, telecommunications, free zone and property businesses that contribute a healthy cash flow. DHCOG is committed to meeting its financial obligations as and when they fall due.”

“The outlook for DHCOG and its subsidiaries remains promising on the back of stabilising economic conditions,” Bin Byat noted.

“DHCOG has made considerable strides to improve its balance sheet and reduce its debt position. We look ahead into 2012 with great optimism about the medium- and long-term outlook for our businesses as we continue to drive operational efficiencies to deliver even stronger operating performance,” he concluded. – TradeArabia News Service & Reuters

Daman opens claims database for members

Thu, 26 Apr 2012 06:17:36 GMT

The National Health Insurance Company – Daman has launched an online database, which will allow its 2.1 million members to review their claim history, through the members’ online profile.

Designed to promote transparency and generate member awareness on health insurance costs, the service is the first to be offered by a health insurer in the region, a statement said.

“Daman’s online claim database service is an incredibly unique offering, and we are proud to be the first health insurance provider in the region to launch such an initiative. This is an innovative concept for the insurance industry, and one that promotes transparency while working to curb insurance fraud and abuse,” said Daman chief executive officer Dr Michael Bitzer.

Upon accessing the claims database, members will see the number of claims made, overall cost of claims spent on their policies for the year and their share of payments. Each year is broken down into quarters, each with its claims amount summary, and finally each quarter’s activity is presented in a report.

Online claim referencing works seamlessly with Daman’s award-winning online services, which include and advanced system for submission and tracking of claim reimbursements.

The database is accessible over a secure connection to protect this sensitive information.

Daman chief services officer Peter Bauer said: “Offering members access to our intricate database through a website interface was a lengthy, difficult process; especially when taking online security into account.”

“We truly hope that our members will see the value of having this information available to them. They are now able to have a clear overview on their claims history and the costs associated with it.”

Up to three years of claims history are available on the website damanhealth.ae, the statement said. – TradeArabia News Service

Bahrain Islamic posts $1.4m Q1 net profit

Thu, 26 Apr 2012 06:17:35 GMT

Bahrain Islamic Bank registered at net profit of BD543,000 ($1.4 million) in first quarter of this year compared with BD1.5 million for the same period last year.

Operating profit was BD2 million compared with BD2.5 million last time and the bank has taken provisions of BD1.5 million as a precaution against any unforeseeable deterioration in asset values compared with BD1 million last time.

The income has all been generated from major core activities of the bank.

Chairman Khalid Abdulla Al Bassam expressed his satisfaction on the increase in customer deposits by BD30 million in the first three months which equals five per cent of total deposits.

"All financial indicators for the first quarter are in favour of the bank - whether it is availability of liquidity, increase in customer deposits and Islamic finance for corporate and individuals or the decrease in the cost of deposits," said chief executive Mohammed Ebrahim Mohammed.

The liquidity indicator reached 24 per cent for the first quarter, Islamic finances increased by 4 per cent, and cost of deposits has been lowered to a great extent, plus the decrease in expenses as compared with income which has decreased to 43 per cent compared with 51 per cent last year.

"What has been accomplished represents the right track for the bank," said Mohammed.

"The bank now relies totally on income and fees from finance and core activities which represent more than 90 per cent of total operating income and this income does not contain any revaluations or unearned profit.

"This result is a consequence of the advanced and developed services presented by the bank and enjoyed by all its clients. Work is underway in the five malls, to be developed by the bank, and is running according to schedule," he said.

"It is expected that construction of some of the malls will be finalised by the end of this year, and these will be inaugurated in the first quarter of next year," he added. - TradeArabia News Service

ADF launches new mortgage promotion

Wed, 25 Apr 2012 06:52:06 GMT

Abu Dhabi Finance (ADF), a leading home finance provider, has launched a special promotion for the Cityscape Abu Dhabi exhibition, offering a fixed rate of 4.99 per cent during the first year of the mortgage.

The mortgage will also offer two premium passes to a theme park at Yas Island. The special promotion will apply to all new applications received by end of April.

Entitled ‘The Cityscape Promotion’, it will be available for a limited period of time for UAE nationals and residents alike.

Philip Ward, chief executive officer Abu Dhabi Finance, stated: “We remain committed to supporting the development of the real estate market in Abu Dhabi and we have launched this promotion in response to the evolving needs of our clients. We hope to strengthen our position as Abu Dhabi’s favourite mortgage lender, and offer our clients even better value and service.”

The promotion is available on the back of Abu Dhabi Finance’s ‘Essence’ mortgage, which provides flexible financing with award-winning Client Service to suit a wide range of clients’ needs.

Its flexible features include a Loan-To-Value (LTV) ratio of up to 85 per cent, mortgage tenures of up to 30 years, and a wide range of repayment options. Clients also benefit from the option of a one-month payment holiday and a 10 per cent partial settlement facility free of charge each year.

Abu Dhabi Finance is present on Aldar Properties Stand at Cityscape Abu Dhabi where professional mortgage advisors will be on hand to offer advice and guidance on home loans in the UAE, a statement said. – TradeArabia News Service

Dubai to launch benchmark Islamic bond

Wed, 25 Apr 2012 06:52:06 GMT

The government of Dubai plans to issue a benchmark Islamic bond, or sukuk, made up of a five-year and a 10-year tenor, arranging banks said on Tuesday.

Guidance for the five-year and 10-year tranche is in the 5 per cent and 6.5 per cent area, respectively. Benchmark-sized is usually understood to mean at least $500 million.

Citigroup, HSBC, National Bank of Abu Dhabi and Dubai Islamic Bank are mandated arrangers on the deal, which is due to launch 'as soon as possible,' according to arrangers.

Reuters reported earlier on Tuesday that Dubai had mandated banks for a new bond issue, which could be up $1.5 billion. – Reuters