The Asset Triple A Islamic Finance Awards 2020 - Best Deals by Country

The Asset Triple A
Islamic Finance Awards 2021

Best Deals by Country

ASIA PACIFIC
MENA
Bangladesh
Best Islamic loan
National Fittings & Accessories Limited 2.30 billion taka syndicated term finance facility
Sole mandated lead arranger, bookrunner and lender: Standard Chartered
Lenders: Pubali Bank, Islami Bank Bangladesh, Jamuna Bank, Midland Bank, Dutch Bangla Bank, Trust Bank
The dual-tranche facility comprising of conventional and Islamic loans was executed amid the pandemic-imposed closure in the country. The Islamic tranche was structured on the Shariah principle of diminishing musharaka to diversify the company’s funding base and attract local Islamic banks into the deal, and benefited from robust facility structure.
China
Best corporate sukuk
Country Garden Real Estate 295 million ringgit murabaha sukuk
Lead manager: Standard Chartered
The proceeds are allocated to finance the group’s present and future Shariah-compliant investments and for the group’s Shariah-compliant working capital and capital expenditure requirements.
Indonesia
Best green sukuk
Republic of Indonesia US$2.5 billion wakala sukuk
Green structuring advisers: BNP Paribas, HSBC
Shariah advisers and bookrunners: BNP Paribas, Dubai Islamic Bank, HSBC, Maybank Kim Eng, Standard Chartered
Co-managers: PT BRI Danareksa Sekuritas, PT Trimegah Sekuritas Indonesia
The fund raising included a five-year green sukuk tranche amounting to US$750 million, with the proceeds earmarked for climate change financing and a 30-year tranche amounting also to US$750 million – the first ever 30-year sukuk issued by the sovereign.
Best local currency sukuk
PT Pegadaian Persero 1.435 trillion rupiah mudaraba sukuk
Lead underwriter: IndoPremier
The fund raising was designed to meet the financing needs of Pegadaian, a state-owned enterprise that extends credit in the form of cash by way of pawning or providing a valuable asset as a guarantee, to meet its higher working capital requirements due to significant increase for its service at the height of Covid-19.
Best new sukuk
PT Bussan Auto Finance 500 billion rupiah mudaraba sukuk
Sole lead underwriter: IndoPremier
The first sukuk issued by Japanese-owned subsidiary in Indonesia to diversify its funding sources. The deal benefited from the increasing acceptance of Shariah products by non-Shariah investors in Indonesia, who subscribed to about 90% of the deal size.
Best fintech financing platform
ALAMI eFishery platform
Provider: ALAMI
This platform with digital ecosystem provides financing for over 10,000 fish farmers nationwide who lacks working capital, especially to cover about 70% of their operational feeding cost. One milestone that was included in the deal was to use technology for advancing the implementation of murabaha principle only, which is different from banking schemes that still include wakala principle in their murabaha product.
Malaysia
Best SRI sukuk
Government of Malaysia 666 million ringgit sukuk Prihatin
Primary distribution bank: Maybank
This is the first digital sukuk in Malaysia launched by the government under the National Economic Recovery Plan (Penjana) to finance the economic stimulus packages and recovery plan to address the Covid-19 health crisis. The deal was upsized from the initial amount of 500 million ringgit due to strong demand.
Best Asean sustainability SRI sukuk – Quasi-sovereign
Cagamas 100 million ringgit sustainability SRI commodity murabaha sukuk
Shariah advisers: CIMB Islamic Bank, Maybank Islamic Bank, HSBC Amanah Malaysia, Amanie Advisors
Sole lead manager: RHB Investment Bank
The proceeds are used to fund the purchase of eligible Islamic financing for affordable housing from the asset selling institutions, while the proceeds from the Islamic medium-term notes are earmarked to fund Islamic house financing.
Best Asean sustainability SRI sukuk - Corporate
Sime Darby Property 800 million ringgit Asean sustainability SRI musharaka sukuk
Shariah adviser: Maybank Islamic Bank
Sole principal adviser, lead arranger and lead manager: Maybank Investment Bank
Lead managers: CIMB, Public Investment Bank
The 150 million ringgit tranche of the deal represents the first sustainability sukuk globally based on the principle of musharaka and it is the first Asean sustainability SRI sukuk by a real estate property developer. It is also the largest Asean sustainability SRI sukuk for 2020.
Best Asean green SRI sukuk - Renewable energy
Leader Energy 260 million ringgit Asean green SRI wakala sukuk
Sole principal adviser, Shariah adviser, lead arranger, lead manager and green structuring adviser: HSBC Amanah Malaysia
This is the first project financing sukuk for the HNG Group and the first Asean green SRI sukuk issuance in the ringgit market in 2020.
Best green financing
Yinson Holdings 200 million ringgit sustainability-linked financing
Sole sustainability structuring bank: HSBC Amanah Malaysia
Second party opinion provider: Sustainalytics
The transaction featured a tiered pricing mechanism in which Yinson will benefit from preferential pricing upon meeting pre-agreed targets in relation to its ESG performance, allow the sustainability-linked financing margin to increase or decrease depending on the company’s ESG performance as measured by Sustainalytics.
Best corporate sukuk
Axiata Group US$500 million wakala sukuk
Bookrunners and lead managers: CIMB, Citi, Standard Chartered, UBS
The 10-year sukuk was part of the US$1.5 billion fund raising that included a 30-year US$1 billion conventional bond. The two tranches achieved the lowest US dollar rates and coupons out of Malaysia and the 10-year sukuk notched the tightest ever pricing for Axiata for such tenor.
Best corporate hybrid sukuk
Dialog Group Berhad 500 million ringgit perpetual wakala bi al-istithmar sukuk
Shariah advisers: AmBank Islamic, CIMB Islamic Bank
Principal advisers, lead arrangers and lead managers: AmInvestment Bank Berhad, CIMB
This is the company inaugural fund-raising exercise through the Malaysian Islamic capital markets. It was structured with the wakala portfolio comprising ijara assets and a commodity murabaha investment – currently used by other perpetual sukuk programme in the market but it would be the first for this structure to be adopted by a senior facility.
Best new sukuk – Quasi-sovereign
Pengurusan Air Selangor 1.1 billion ringgit murabaha sukuk
Principal adviser, Shariah adviser, lead arranger and lead manager: Bank Islam Malaysia
Lead manager: Maybank Investment Bank
To finance construction of new treatment plant, pipe replacements projects and enhancement of non-revenue water.
Best new sukuk - Corporate
Guan Chong 300 million ringgit wakala sukuk
Sole principal adviser, lead arranger and lead manager: Maybank Investment Bank
Lead manager: UOB (Malaysia)
This is the company inaugural sukuk issuance in the debt capital market to diversify its financing sources to fund its growth and expansion plans. It is the first company from the consumer products cocoa industry to tap the debt market.
Best local currency sukuk
Malaysia Airports Holdings 700 million ringgit musharaka sukuk
Lead managers: HSBC Amanah Malaysia, Maybank Investment Bank
This was the company’s first issuance in the debt capital markets since 2014 and the 10-year tranche was the longest-dated tenor achieved by the company.
Best bank sukuk
Bank Kerjasama Rakyat Malaysia 700 million ringgit wakala sukuk
Sole principal adviser, Shariah adviser, lead arranger and lead manager: Maybank Investment Bank
Lead managers: CIMB, RHB Investment Bank, Bank Muamalat Malaysia
The dual-tranche offering was upsized to 700 million ringgit due to strong demand, allowing the bank to tighten the final pricing. The offering was drawn from Bank Rakyat’s first senior sukuk programme with the element of sustainable/SRI sukuk, which is strategic to achieve its environmental, social and governance (ESG)/Sustainable Development Goal (SDG) objectives in its lending business.
Best structured financing
ALSREIT Capital 520 million ringgit ijara sukuk
Principal adviser, lead arranger and lead manager: RHB Investment Bank
Lead manager: Maybank Investment Bank
This was a complex transaction as the issuance needed to secure a large pool of 28 existing commercial assets/properties. The proceeds were mainly used to redeem the first sukuk outstanding issued under the company’s programme.
Best project finance loan
Golden Sands Beach Resort City 235 million ringgit murabaha term financing facility
Shariah adviser: MIDF Amanah Investment Bank
Principal advisers, lead arrangers, lead managers: MIDF Amanah Investment Bank, Bank Pembangunan Malaysia, Sabah Development Bank
The green club facility was earmarked to partly finance up to 71.3% of the development cost of the Club Med Borneo resort located in Sabah. The total fund raising also included a conventional term facility of up 35 million ringgit.
Best securitization
Exsim Ventures Berhad 103 million ringgit musharaka and murabaha sukuk
Financial adviser and structurer: NewParadigm Capital Markets
Shariah adviser: Dr Mohd Daud Bakar
Lead arranger and underwriter (murabaha sukuk): UOB (Malaysia)
Guarantor (murabaha sukuk): Danajamin Nasional
This is the world’s first Shariah-compliant securitization of progress billings and monetization of progress billings involving a residential development project, such as serviced apartments, and combines two separate structured programmes that are stapled together.
Best structured product
Autocallable equity-linked investment (Autocallable-i)
Product manufacturer/provider: Maybank
This is Malaysia’s first Shariah-compliant autocallable product. It is a short-to-medium term structure of typically 6-18 months that pays periodic fixed profit up to an early call date (autocall event) or its maturity.
Best IPO
Mr D.I.Y. Group (M) Berhad 1.5 billion ringgit IPO
Principal advisers, global coordinators, bookrunners, managing underwriters and underwriters: Maybank Investment Bank, CIMB
Global coordinators, bookrunners, managing underwriters, underwriters: RHB Investment Bank
Global coordinators and bookrunners: Credit Suisse, J.P. Morgan, UBS
Underwriters: AmInvestment Bank, Hong Leong Investment Bank, Kenanga Investment Bank
This was the largest IPO in Malaysia since 2017 and the largest ever retail sector IPO in the country. It revived overseas interest in Malaysian listings with the participation of global funds. The stock price continued to perform well, closing at 3.48 ringgit on July 26, compared with the offer price of 1.60 ringgit.
Best rights issue
Sunway 977.8 million ringgit Islamic irredeemable convertible preference shares
Sole principal adviser: RHB Investment Bank
This was Malaysia’s largest rights issue in 2020 and structured to meet Sunway’s objectives of raising maximum proceeds, while balancing dilutive impacts. The proceeds are used, among others, to develop a new hospital and for expansion of an existing hospital.
Best secondary placement
KLCC Stapled Securities 1.10 billion ringgit secondary placement
Bookrunners and placement agents: Maybank Investment Bank, J.P. Morgan
This was the largest ever real estate investment trust (Reit) follow-on offering in Malaysia and attracted high quality investors that were anchored by long-only funds. The book was oversubscribed, providing support for the full exercise of the deal’s upsize options.
Pakistan
Best green financing
Amreli Steels US$3.93 million facility
Shariah adviser and mandated lead arranger: Faysal Bank
The deal was funded under the State Bank of Pakistan’s financing scheme for renewable energy and the proceeds were used to reduce the company’s conventional grid-based power source with renewable source. It was secured through the USAID Development Credit Authority (DCA) guarantee programme, which provides partial credit guarantees to mobilize local financing in developing countries.
Best quasi-sovereign sukuk
Power Holding 200 billion rupees sukuk
Bookrunners: National Bank of Pakistan, Taurus Securities
The offering, issued through a special purpose vehicle fully owned by the Ministry of Energy, was undertaken to address the liquidity constraints being faced by the country’s power sector due to circular debt. This was the first ever debt issuance done through book building on Dutch auction method and represented an important milestone in the development of Pakistan’s debt capital markets.
Best corporate sukuk
K-Electric 25 billion rupee diminishing musharaka sukuk
Shariah structuring adviser and structuring agent: Habib Bank
Structuring agent: National Bank of Pakistan
IPO consultant: Arif Habib
The transaction was the largest issuance of rated, secured and retail listed sukuk by a private company in Pakistan and the proceeds were used to meet its operating expenses and capital expenditure requirements. The deal featured a waterfall mechanism in which cash collection was made part of the transaction structure to ensure cash availability for profit payment and redemption component over the tenor of the sukuk.
Best acquisition financing
Searle Company 10.44 billion rupees diminishing musharaka facility to acquire OBS Pakistan (Private) Limited
Shariah adviser, structuring agent and mandated lead arranger: Habib Bank
The transaction was the largest acquisition deal in the pharmaceutical sector in Pakistan. The financing was innovatively structured for utilization of third-party assets in the deal, with the facility secured against eight different properties.
Best restructuring
Fauji Foods Limited restructuring of debt facilities and remodelling of balance sheet
Mandated lead arranger: Faysal Bank
The restructuring exercise, which involved managing the interest of nine lenders, was designed to provide liquidity to the company by deferring immediate debt servicing obligations and extending grace period of existing long-term loans. It also involved ensuring adequate working capital lines available to company at all times, and the conversion of short-term lines into long-term loans to achieve optimal capital structure.
Bahrain
Best new sukuk
GFH Financial Group US$300 million wakala sukuk
Shariah advisers: GFH, Societe Generale, Standard Chartered
Global coordinators, bookrunners and lead managers: Societe Generale, Standard Chartered
Bookrunners and lead managers: Emirates NBD Capital, Kamco Investment Company, Mashreqbank, SHUAA Capital, Warba Bank
This was GFH’s debut in the international US dollar sukuk market since the management restructuring in 2008-2009. The deal achieved the issuer’s underlying objectives of targeting a wide pool of European, Asian and Middle Eastern accounts to diversify its investor base.
Kuwait
Best bank capital sukuk
Kuwait International Bank US$300 million tier 2 Basel III-compliant sukuk
Global coordinators, bookrunners and lead managers: Citi, Standard Chartered
Bookrunners and lead managers: Emirates NBD Capital, First Abu Dhabi Bank, Kamco Investment Company, KFH Capital Investment Company, Boubyan Bank, Islamic Corporation for the Development of the Private Sector
This was the first US dollar-denominated tier 2 Basel III-compliant sukuk from Kuwait, garnering an order book of US$2.7 billion. It achieved a low coupon of 2.375% and the lowest ever yield on a tier 2 issuance from the Middle East.
Best bank sukuk
Boubyan Bank US$750 million wakala and commodity murabaha sukuk
Shariah advisers: Boubyan Bank, HSBC, Standard Chartered
Global coordinators, bookrunners and lead managers: HSBC, Standard Chartered
Bookrunners and lead managers: Bank ABC, Boubyan Capital, First Abu Dhabi Bank, HSBC, Islamic Corporation for the Development of the Private Sector, KFH Capital Investment Company, Kuwait International Bank, Warba Bank
The deal was upsized from the initial amount of US$500 million on the back of robust order book that peaked at US$4.9 billion. The final pricing was 30bp tighter than the initial price guidance and was 5bp inside fair value, representing a negative new issue premium based on Boubyan Bank’s curve at the deal announcement.
Qatar
Best bank sukuk
Qatar Islamic Bank US$800 million trust certificates
Shariah advisers: Qatar Islamic Bank, Standard Chartered
Sole lead manager: Standard Chartered (Taiwan)
Arrangers and co-managers: Cathay United Bank, CTBC Bank, KGI Bank, President Securities Corporation, SinoPac Securities, Yuanta Securities
This was the first ever Formosa sukuk globally and captured two pools of liquidity for QIB – the US dollar sukuk and the US dollar Formosa market. The offering, upsized from the original amount of US$650 million, was priced with a negative new issue premium of about 5bp inside QIB’s secondary curve.
Saudi Arabia
Best SRI sukuk
Islamic Development Bank US$1.5 billion wakala sukuk
Shariah adviser: Islamic Development Bank
Bookrunners and lead managers: Citi, Credit Agricole CIB, Emirates NBD Capital, Gulf International Bank, HSBC, Islamic Corporation for the Development of the Private Sector, Natixis, Societe Generale, Standard Chartered
This was the first ever Covid-19 response sukuk with the proceeds used exclusively to address the economic and social challenges caused by the coronavirus in Islamic Development Bank’s (IsDB) member countries. It achieved the lowest ever profit rate on a US dollar public sukuk issuance by IsDB.
Best green sukuk
Saudi Electricity Company US$1.3 billion dual-tranche green ijara sukuk
Shariah advisers: Standard Chartered, First Abu Dhabi Bank, HSBC Saudi Arabia, J.P. Morgan
Green structuring advisers: HSBC, MUFG Securities EMEA
Lead managers: Standard Chartered, First Abu Dhabi Bank, HSBC, J.P. Morgan, MUFG Securities EMEA
This was the first ever US dollar-denominated green sukuk issuance by a Saudi corporate and the largest corporate offering from Saudi Arabia in 2020. The final pricing was 30bp inside the initial price thought for both tranches as the combined final order book amounted to US$4.7 billion after peaking at US$5.4 billion.
Best bank capital sukuk
Riyad Bank US$1.5 billion tier 2 wakala and commodity murabaha sukuk
Shariah advisers, global coordinators, bookrunners and lead managers: Riyad Bank, J.P. Morgan, Standard Chartered
Bookrunner and lead manager: First Abu Dhabi Bank
The sukuk marked the return of Riyad Bank into the international capital markets after 14 years and the issuance represented the largest ever Basel III-compliant US dollar tier 2 deal in emerging markets. It was also the first Basel III-compliant US dollar tier 2 sukuk from the Middle East.
Best Islamic loan
National Commercial Bank US$1.2 billion term murabaha financing facility
Mandated lead arrangers and bookrunners: Citi, Credit Agricole CIB, Emirates NBD Capital, HSBC, J.P. Morgan, Mizuho Bank, Standard Chartered, Sumitomo Mitsui Banking Corporation
Closed within a tight timeline, the facility is important to National Commercial Bank as part of its strategy shift and growth plan, as well as to strengthen its position in the market. The facility structure provides Shariah-compliant funding requirement that meets the borrower’s business objectives.
Most innovative deal
Fawaz Abdulaziz Al Hokair & Company US$800 million dual currency syndicated Murabaha revolver and term facilities
Mandated lead arrangers and bookrunners: National Commercial Bank, Al Rajhi Banking and Investment Corporation, Samba Financial Group, Arab National Bank, Abu Dhabi Commercial Bank, Mashreq Al Islami
The cross-border US dollar and Saudi riyal syndicated term facilities transaction was regarded as the first deal in the market that was structured to comply with the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Shariah Standard No. 59 designed to avoid the commonly used market practice of cashless rollovers in commodity murabaha structures and to satisfy the United Arab Emirates (UAE) central bank’s requirements for all transactions signed by UAE banks from January 1 2020 to follow AAOIFI 59.
UAE
Deal of the year
Etihad Airways US$600 million transition ijara sukuk and concurrent tender offer
Financial adviser: Mashreqbank
Shariah advisers, global coordinators, bookrunners, lead managers and sustainability structuring agents: HSBC, Standard Chartered
Bookrunners and lead managers: Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank
Lead manager: Abu Dhabi Commercial Bank
Second party opinion provider: Vigeo Eiris
This was the first ever transition bond/sukuk and the first ever sustainability-linked bond/sukuk from the aviation sector, which was a remarkable feat with airlines under pressure due to Covid-19. The deal introduced a new ratchet structure for issuer pay-outs (in this case, purchase of carbon offsets) in case the issuer fails to meet its sustainability targets.
Best sovereign deal
Government of Dubai US$1 billion ijara sukuk
Shariah advisers: Dubai Islamic Bank, HSBC
Lead managers: Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Standard Chartered
The 10-year sukuk tranche was part of a US$2 billion total fund raising by the sovereign and was priced about 20bp inside its closest secondary market reference benchmark, effectively repricing its credit curve. The re-offer yield was the lowest it ever achieved on all its public issuances.
Best bank capital sukuk
Dubai Islamic Bank US$1 billion additional tier 1 perpetual sukuk
Bookrunners and lead managers: Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Sharjah Islamic Bank, Standard Chartered
The deal achieved the lowest ever yield for an additional tier 1 (AT1) sukuk globally at 4.625% and recorded a substantial price tightening of 62.5bp from initial price thought to final print. It was 5.7x oversubscribed – the highest seen in 2020 on any GCC capital trade among financial institutions.
Best corporate hybrid sukuk
DP World US$1.5 billion perpetual mudaraba sukuk
Shariah advisers: Citi, Dubai Islamic Bank, Dar Al Sharia Islamic Finance Consultancy, First Abu Dhabi Bank, HSBC Bank Middle East, J.P. Morgan, Standard Chartered
Global coordinators, bookrunners and lead managers: Citi, Deutsche Bank, J.P. Morgan
Bookrunners and lead managers: Bank of Nova Scotia, Credit Agricole CIB, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Samba Financial Group, Standard Chartered
Co-managers: Abu Dhabi Islamic Bank, Commercial Bank of Dubai
This was the first ever US dollar-denominated benchmark-sized perpetual sukuk by a corporate globally. It achieved a price compression of 50bp from the initial price guidance due to strong investor demand.