CIMB Islamic to seal 19 sukuk pipeline in 2009
* Middle East company to issue $1 bln sukuk shortly
* Sees Islamic mkts posting double-digit growth in 2009
LONDON, July 3 (Reuters) - CIMB Islamic, The world's leading arranger of Islamic bonds, is poised to complete its 19-strong sukuk pipeline by year's end, its Chief Executive, Badlisyah Abdul Ghani, said on Thursday.
Ghani told Reuters on the sidelines of the London 2009 Sukuk Summit that the string of deals involves several companies around the world. In March, Ghani said CIMB Islamic would raise $2.5 billion through its intended sukuk sales.
Sukuk or Islamic bonds are underpinned by tangible assets and do not pay interest. Sukuk volumes fell 56 percent in 2008, from the previous year, hit by the global liquidity crunch, ratings agency Standard & Poor's said.
Ghani was optimistic about the growth prospects for the Islamic finance market, adding CIMB Islamic was poised to soon raise $1 billion via a five-year sukuk for a Middle East firm.
He declined to name the CIMB Islamic client, which will place the debt privately. This issuance would be on top of an already announced $1 billion multi-currency sukuk, also to be issued by a Middle East company.
Ghani said the bond was due "very, very soon", and he was very sure it would be fully subscribed by private investors. It would be one of the most significant Islamic corporate issuances in 2009, he said.
CIMB Islamic is part of CIMB Group, which is listed on the Malaysian stock exchange through Bumiputra Commerce Holdings CIMB BUCM.KL. It is Malaysia's No.2 lender and South-East Asia's fifth-largest bank by assets.
DOUBLE-DIGIT GROWTH
Ghani is optimistic about growth prospects for the Islamic finance industry, in spite of the global economic slow down. He expects the industry -- including the sukuk market -- to grow at a double-digit rate this year.
"People are becoming aware of Islamic finance. Because of the crisis people are now asking what Islamic finance can provide them with," he said.
"Corporates who had never given a single thought about looking at Islamic finance, are actually coming to ask questions. It started last year."
He said European too companies had enquired about tapping the Islamic market to raise capital. Continued...
