Islamic Banking
Nomura Makes Major Strides In US-Dollar Sukuk Issuance

Nomura Holdings is playing a major role in the milestone
release of the first US dollar denominated sukuk issued out of
Malaysia.
The Japanese firm has appointed
Kuwait Finance House as lead arranger for the proposed
issuance of a two-year Sukuk al-Ijarah worth $100 million under
the framework of issuance of foreign currency denominated bonds
and sukuk in Malaysia. The agreement was signed by key officials
from Nomura, the Securities Commission of Malaysia and Bursa
Malaysia.
KFH has been involved in sukuk issuances for companies in diverse
industries worldwide in past 30 years. Sukuk al-Ijarah is
designed to target investors from the Asia Pacific, the Middle
East and London. The product is also expected to eventually be
offered to Nomura's clients in over 30 countries.
"With this landmark transaction, Nomura has further diversified
its funding sources and tapped the large and growing Islamic
finance market for the first time," said
Takumi Shibata, the deputy president and chief operating
officer of Nomura Holdings, in a statement.
"Islamic investors and Islamic finance are a very important and
rapidly growing sector globally. Nomura has now opened the way
for other Japanese corporations to tap the Islamic finance
market," added Shibata.
Islamic finance has proven itself resilient at the height of the
global crisis, leading more investors to consider it as an
alternative option to grow their wealth. In Asia, Malaysia has
been in the running toward becoming an international hub for
Islamic finance.