Dec 06 2007 |
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Local Produce
November 2007John Foster reports on $100 million Musharaka Sukuk from the UAE's Thani Investments
Normally when we write about the ever increasing Sukuk issuance game in the GCC the usual suspects are the big banks or companies with a large government interest. There are not that many companies in private hands that play the game, especially to the tune of $100 million.
One of the first is Dubai's Thani Investments, who might lead the way for other private conglomerates and family run businesses to step into the Islamic capital markets to find funding. Who knows, we might soon see Sukuk issued in the name of families such as the Al Habtoor, Bin Hendi or Al Ghurair?
Thani Investments has built up a varied portfolio of businesses, including interests in mining, gold and property. The Sukuk was arranged by Emirates Islamic Bank of the UAE and the Liquidity Management Centre of Bahrain. Rishard Camball, chief financial officer explained, "Islamic finance is here to stay, and in the group we have underlying investments, such as our property portfolio, that can be collateralised and used to help maintain and increase the momentum of our business. By issuing this Sukuk, we are ensuring that Thani Investments has a bright future"
Thani Investments is one of the region's first privately owned companies to issue Sukuk and Camball claimed that "more and more private institutions are looking at Islamic finance to help develop their businesses. There are a lot of assets in the region that could be securitised and then used to unlock liquidity to reinvest in business growth."
Camball claimed, "There are tremendous opportunities in Dubai Golf City, one of Thani Investment's showpiece projects, and it would be possible to do an Ijarah Sukuk on the back of this."
The Thani Investments Sukuk is a big enough issue to make people sit up and take note. Moreover, being issued by a private company is a brave move, but leads the way for more family businesses to use the Islamic capital markets to consolidate and enhance their positions.© Banker Middle East 2007
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