25 April 2012
JEDDAH - Al Rajhi Bank, the world's largest Islamic lender, is turning to the ringgit-denominated debt market for its debut sukuk sale to fund the opening of new branches in Malaysia.
The Jeddah-based bank is considering the issuance as it plans a 20 percent increase in annual profits in the Southeast Asian nation by adding to 23 existing outlets, Azrulnizam Abdul Aziz, chief executive officer of Al Rajhi's Malaysian unit, Business Times reported Tuesday.
The bank, which has never sold debt since it was founded 60 years ago, will also expand underwriting, said Mudassir Amray, head of wholesale banking in Kuala Lumpur.
"High-quality credits from the Gulf Cooperation Council have been well-received in the ringgit sukuk market, with the added benefit of an ever-growing Islamic liquidity base that has substantial breadth and depth," Malek Khodr Temsah, vice- president of treasury and investment at Albaraka Banking Group BSC in Manama, Bahrain, said Sunday.
"Added volatility and uncertainty in global dollar markets is also pushing regional borrowers to tap non-dollar funding in Asia."
JEDDAH - Al Rajhi Bank, the world's largest Islamic lender, is turning to the ringgit-denominated debt market for its debut sukuk sale to fund the opening of new branches in Malaysia.
The Jeddah-based bank is considering the issuance as it plans a 20 percent increase in annual profits in the Southeast Asian nation by adding to 23 existing outlets, Azrulnizam Abdul Aziz, chief executive officer of Al Rajhi's Malaysian unit, Business Times reported Tuesday.
The bank, which has never sold debt since it was founded 60 years ago, will also expand underwriting, said Mudassir Amray, head of wholesale banking in Kuala Lumpur.
"High-quality credits from the Gulf Cooperation Council have been well-received in the ringgit sukuk market, with the added benefit of an ever-growing Islamic liquidity base that has substantial breadth and depth," Malek Khodr Temsah, vice- president of treasury and investment at Albaraka Banking Group BSC in Manama, Bahrain, said Sunday.
"Added volatility and uncertainty in global dollar markets is also pushing regional borrowers to tap non-dollar funding in Asia."
© The Saudi Gazette 2012
