24 April 2013 Guidance Financial Group Pioneers First Malaysian Ringgit Sukuk By a Saudi Issuer
24 April 2013 | Guidance Financial Group has advised Al Bayan Group Holding Company on the establishment of a 1.0 billion Malaysian ringgit Sukuk programme and on a first issuance of RM 200 million Sukuk Wakalah under the programme. The issuance has been granted 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 programme and issued a ringgit denominated Sukuk. Guidance Financial Group’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.
Dr. Mohamad Hammour, Chairman of Guidance Financial Group, said: “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, Sharia-compliant structures – a strong endorsement to Islamic finance and a precedent for future issuances from corporates based in Saudi Arabia.”
Tahir M. Naseem, CEO of Guidance Financial Group’s international finance division, added: “Guidance’s teams in Malaysia and the Gulf are pioneering innovative debt capital markets 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. 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 Berhad and Kenanga Investment Bank Berhad acted as the Joint Lead Arrangers and Joint Lead Managers and Al Hilal Bank acted as the Manager in the UAE markets.
Al Bayan Group Holding Company
Al Bayan Group Holding Company is a diversified holding company based in the Kingdom of Saudi Arabia, with businesses that include construction of infrastructure and buildings, general contracting, supply of a large range of equipment and information technology products and services, advertising and publishing, and other related businesses.
Guidance Financial Group
Guidance Financial Group is a leading international Islamic financial services firm that provides investment management services, debt capital markets solutions, financial advisory services, and consumer finance to a broad range of clients in the Middle East, Southeast Asia and North America.
For more information please contact:
Dr. Hasnita Hashim
Chief Executive Officer
Suite 19.09, Level 19
GTower, 199, Jalan Tun Razak
50400 Kuala Lumpur
H2S Consulting Sdn Bhd
t: +603 6211 1101
m: +60112345 7383