RUSSIA - Russian-Led Development Bank Plans to Expand Islamic Financing

www.bloomberg.com - Eurasian Development Bank, a Russian-led lender backed by six former Soviet republics, wants to expand Shariah-compliant financing after helping arrange a deal last year, Chief Executive Officer Igor Finogenov said.

“Islamic finance is an opportunity for us to enter new credit markets,” Finogenov told reporters in Moscow today. “We hope it will allow us to diversify our liability base.” (source)

FRANCE - France’s First Sukuk Hampered by Debt Crisis

islamicfinanceasia.blogspot.com - Jan. 25 (Bloomberg) -- France’s efforts to sell the nation’s first Islamic bonds and attract Shariah investors from the oil-rich Persian Gulf are being hindered by Europe’s debt crisis as borrowing costs rise.

The euro region’s second-biggest economy, which put in place the legal framework to allow banks and other private issuers to sell Islamic bonds in 2009, had its top AAA credit rating cut by Standard & Poor’s on Jan. 13 on concern policy makers are failing to address the effects of the debt crisis. Yields on two-year French government notes have climbed 10 basis points since the one-step reduction, according to data compiled by Bloomberg.  (source)

HUNGARY - Hungary Debt Chief Rules Out Junk Grade, Eyes Islamic and Ruble Bonds

Sept. 30 (Bloomberg) -- Hungary has a higher chance of the outlook on its credit profile being raised to stable from negative than having its rating cut to junk from the lowest investment grade, the Debt Management Agency said.

Teams from Standard and Poor’s and Moody’s Investors Service will visit the country in October to review its rating, Chief Executive Officer Gyula Pleschinger told a conference in Pecs, southern Hungary, today. S&P rates Hungary BBB- with a negative outlook. Moody’s and Fitch Ratings also rate it a step above junk with negative and stable outlooks, respectively.  (source)

UK - EIIB - Algosaibi Overwhelmed by Claims, Lawyer Says Can’t Pay EIIB

European Islamic Investment Bank Plc (EIIB) is seeking payment of its $78 million claim against Saudi investment firm Ahmad Hamad Algosaibi & Brothers Co. without a trial. 

EIIB, which filed its claim on behalf of a group of other banks, sought the ruling from a London judge after Algosaibi admitted June 15 liability in another case where HSBC Holdings Plc (HSBA) and four other banks are seeking $250 million from the company. Algosaibi, which has defaulted on its debt, said there isn’t enough money to go around. (source)

LUXEMBOURG - Luxembourg Puts Sukuk on Hold, Governor Yves Mersch Says

Luxembourg has put on hold plans to sell the government’s first Islamic bonds, Central Bank Governor Yves Mersch said. 

“As of late, Luxembourg has had less need to issue,” Mersch told reporters at the Islamic Financial Services Board Summit in Luxembourg City today. “This might have influenced the decision to put the project on hold.”(full story)

RUSSIA - Russian Banks to Begin Trading in Islamic Debt

JAKARTA, Indonesia — VTB Group and Gazprombank are vying to become the first Russian borrowers to sell Islamic debt in a bid to attract Middle Eastern investment.

VTB, Russia's second-largest bank, aims this year to raise about $200 million selling sukuk, debt that complies with Islam's ban on interest, Herbert Moos, the lender's deputy chairman, said in an interview Wednesday. Gazprombank, the lending arm of gas export monopoly Gazprom, is in talks with at least 10 Moscow-based companies on arranging a sale and will meet investors in the Persian Gulf in September, said Alexander Kazakov, director of structured and syndicated finance. (full story)

BANKING - Albaraka Turk Seeks Partnerships in Albania, Bosnia, Star Says

Albaraka Turk Katilim Bankasi AS, an Islamic bank based in Turkey, is in talks with two banks to set up strategic partnerships in Albania and Bosnia-Herzegovina, Star newspaper reported, citing Albaraka Turk Chairman Fahrettin Yahsi.(full story)

ALBANIA - TURKEY - IDB Gives $511 Mln in Loans, Grants for Member States’ Projects

Islamic Development Bank said that its board of executive directors approved today about $511 million in loans and grants for several projects in member countries.

The Jeddah-based multilateral lender, known as IDB, said the approved projects include $222 million to build a road in Albania, $108 million to schools development program in Turkey, and $95 million for the construction of grain steel silos in Pakistan.   (full story)