Kuwait Finance House has formed a joint-venture with US-based REIT UDR to purchase up to $450 million of class 'A' buildings. This is the first re-entry of KFH into the U.S. property markets since exiting prior to the financial crisis. The joint venture, KFH will contribute 70% and UDR will contribute 30%.
The National continues to provide the best coverage of the upcoming Nakheel sukuk maturity in December, first with an article about the danger should Nakheel be unable to pay on the maturity and another article about the rise in secondary market prices for Nakheel which may signal that Nakheel will be able to make repayment. Nakheel may be one of the beneficiaries of the Dubai government's bailout funded by its $20 billion in bond issues. Despite the higher prices in the secondary markets, Nakheel's sukuk carries a yield of around 60% at current prices according to data provided by Zawya. The initial lease payments were 6.345% and the sukuk holders receive half of the lease payments upon maturity according to the offering circular which I described in an earlier post.
- Dow Jones launched two new Islamic indices, Islamic GCC and Islamic MENA.
- The new CBB Sukuk al-Ijara (6 months maturity) was oversubscribed by 300% and yields 1.05%.
- Islamic finance is "better placed to take advantage of the improvement in the capacity factor of renewables - the percentage of time that a plant is operational" according to iQuantis Ltd.
- Malaysia's Artice IV consultation with the IMF included several mentions of the country's Islamic financial industry.