11 May 2013
The Guidance Financial Group (GFG) has advised Al-Bayan Group Holding Company on the establishment of a 1.0 billion Malaysian ringgit sukuk program and on a first issuance of RM 200 million sukuk wakalah under the program.
The issuance has been assigned a rating of "AA3" by RAM Ratings Malaysia. This marks the first transaction of its kind, where a Saudi issuer successfully established a Malaysian ringgit sukuk program and issued a ringgit denominated sukuk.
The GFG's team coordinated and managed on behalf of Al-Bayan the entire credit rating process, the selection of lead banks and the structuring of the sukuk.
"We are pleased to have advised Al-Bayan Group Holding Company on this landmark transaction, which bears testament to the potential of Saudi corporates to access international sukuk capital markets through innovative, Shariah-compliant structures -- a strong endorsement to Islamic finance and a precedent for future issuances from corporates based in Saudi Arabia," Mohamad Hammour, GFG chairman, said in a statement.
Tahir M. Naseem, CEO of GFG's international finance division, added: "Guidance's teams in Malaysia and the Gulf are pioneering innovative debt capital market solutions for Saudi issuers who have traditionally been limited to local bank finance, highlighting the potential to source medium- to long-term funding through Malaysia, the largest sukuk capital market in the world."
He added that this landmark transaction showcases "our firm's ability to advise borrowers on how to obtain a credit rating and structure innovative financing solutions to open doors to a whole new investor base beyond domestic financial markets."
HSBC Amanah Malaysia Berhad, Hong Leong Islamic Bank and Kenanga Investment Bank Berhad acted as the joint lead managers and Al-Hilal Bank acted as the manager in the UAE markets.
The Guidance Financial Group (GFG) has advised Al-Bayan Group Holding Company on the establishment of a 1.0 billion Malaysian ringgit sukuk program and on a first issuance of RM 200 million sukuk wakalah under the program.
The issuance has been assigned a rating of "AA3" by RAM Ratings Malaysia. This marks the first transaction of its kind, where a Saudi issuer successfully established a Malaysian ringgit sukuk program and issued a ringgit denominated sukuk.
The GFG's team coordinated and managed on behalf of Al-Bayan the entire credit rating process, the selection of lead banks and the structuring of the sukuk.
"We are pleased to have advised Al-Bayan Group Holding Company on this landmark transaction, which bears testament to the potential of Saudi corporates to access international sukuk capital markets through innovative, Shariah-compliant structures -- a strong endorsement to Islamic finance and a precedent for future issuances from corporates based in Saudi Arabia," Mohamad Hammour, GFG chairman, said in a statement.
Tahir M. Naseem, CEO of GFG's international finance division, added: "Guidance's teams in Malaysia and the Gulf are pioneering innovative debt capital market solutions for Saudi issuers who have traditionally been limited to local bank finance, highlighting the potential to source medium- to long-term funding through Malaysia, the largest sukuk capital market in the world."
He added that this landmark transaction showcases "our firm's ability to advise borrowers on how to obtain a credit rating and structure innovative financing solutions to open doors to a whole new investor base beyond domestic financial markets."
HSBC Amanah Malaysia Berhad, Hong Leong Islamic Bank and Kenanga Investment Bank Berhad acted as the joint lead managers and Al-Hilal Bank acted as the manager in the UAE markets.
© Arab News 2013
