UAE Mashreq Bank working on three local currency sukuks

Reuters, Monday 10 Oct 2011

The dirham-denominated issues will hit the market next year, says bank head

Mashreq Bank, Dubai's second-largest lender by market value, is working with three entities for potential dirham-denominated benchmark sukuks, the head of its Islamic unit said on Monday.

The issues could hit the market next year, Moinuddin Malim, the chief executive of Mashreq Al Islami, told Reuters on the sidelines of a conference in Abu Dhabi.

"We are working with three entities, both corporates and government-related entities (GREs) to help them tap the domestic market," he said. "We have huge liquidity and there is demand for the right price."

Malim said the returns on the sukuk will be attractive.

"Malaysia has been successful because of their local currency sukuk," he said, adding that it will help in building a domestic sukuk market.

The lender, which reported a 41 per cent increase in second-quarter profits, said last week that now expects lower profit growth for the UAE banking sector than at the start of the year as global economic worries hamper recovery.


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