NBF Capital raises AED1 billion for Pacific Control Systems

NBF Capital, regulated by the Dubai Financial Services Authority and a fully-owned subsidiary of National Bank of Fujairah (NBF), has raised AED1 billion for Pacific Control Systems (PCS), a global provider of information communication technologies, through a combination of conventional and Islamic financing structures. 

PCS plays a major role in the UAE's ongoing transformation into a knowledge-based economy. The interest that was received for the transaction is not just an endorsement of PCS' prospects, but also a demonstration of the institutional goodwill that can be mustered by NBF Capital on behalf of its clients. 

PCS intends to use the amount, which has a tenor of 72 months, to finance its expansion and working capital requirements. The funds raised through the current syndication from NBF will enhance the capacity in data centre infrastructure, increase cloud services infrastructure and offer automated service portals and related services for customers in the GCC. PCS has partnered with Microsoft to deliver these services in the region.

The deal was originally valued at AED750 million but was oversubscribed by 33%, receiving AED1 billion in total commitments. It was underwritten by NBF and Al Khaliji Commercial Bank, as mandated lead arrangers, with NBF also acting as global facility agent for the transaction.

Other participating banks include Al Khaliji France, Dubai Islamic Bank, United Arab Bank, National Bank of Oman, Ajman Bank and Sharjah Islamic Bank. Dubai Islamic Bank also served as the investment agent for the syndication.

The syndication, a combination of conventional and Islamic financing structures, was PCS' second in the past three years. Its first club deal was facilitated by NBF in 2012, before the formation of NBF Capital. NBF acted as mandated lead arranger, bookrunner and underwriter for the syndication, which amounted to AED265 million.

National Bank of Kazakhstan becomes AAOIFI member

The National Bank of Kazakhstan, the central bank and financial services regulator of the Republic of Kazakhstan, has taken up membership in Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). The signing ceremony took place on 2 December at the World Islamic Banking Conference 2014 in Manama, Kingdom of Bahrain.Dr Hamed Hassan Merah, Secretary General of the AAOIFI, said the membership would allow AAOIFI to work more closely with the National Bank of Kazakhstan and the finance industry in the Republic of Kazakhstan to support continuing development of Islamic finance.

Nurlan Kussainov, Deputy Governor, Bank of Kazakhstan said, "The membership gives us an opportunity to gain from the international experience in development of Islamic finance industry, to benefit from recommendations of international experts and financial institutions, and to participate in workshops and conferences organised by AAOIFI”.

The Republic of Kazakhstan introduced in early 2009 law and regulations for operations of Islamic financial institutions. This then led to establishment of the first Islamic bank (Al Hilal) and the first Islamic insurance (takaful) company in 2010. The Development Bank of Kazakhstan then became the first sukuk issuer in the Central Asia region with its sukuk al murabaha issuance in July 2012, denominated in Malaysian ringgit at the equivalent amount of approximately US$76.7 million (RM240 million). Earlier in 2014, the first Islamic leasing (ijarah) company was set up in the Republic of Kazakhstan through participation of the Islamic Corporation for Private Sector Development, a member of the Islamic Development Bank Group.

AAOIFI is a leading international Islamic finance industry development body primarily responsible for development and issuance of standards for the global Islamic finance industry. It has issued a total of 88 standards in the areas of shari’ah, accounting, auditing, ethics and governance for international Islamic finance. 

It is supported by over 200 institutional members, including central banks and regulatory authorities, financial institutions, accounting and auditing firms, and legal firms, from over 45 countries. Its standards are currently followed by all the leading Islamic financial institutions across the world and have introduced a progressive degree of harmonisation of international Islamic finance practices.