Winner: HSBC Amanah
In 2008, HSBC Amanah continued to mark itself out from the competitors in the sukuk market as it pushed forward with six new and innovative deals despite difficult market conditions. Out of the $1.3 billion that it underwrote, several deals stand out. The bank was bookrunner for Sabic’s SAR5 billion ($1.3 billion) deal – the first riyal sukuk in 2008 and the largest. In the Saudi market HSBC also bookran the largest ever unrated sukuk entirely distributed within the Kingdom. This Saudi Binladin Group sukuk for SAR1 billion was also the first sukuk to be issued through a registered offshore vehicle, and then cleared and settled through the Tadawul stock exchange. Finally, it was the first sukuk relating to developments in Mecca.
HSBC Amanah also impressed in the Asian market. Malaysian national mortgage corporation Cagamas issued a M$2 billion ($560 million) sukuk – the largest ringgit-denominated sukuk issued in 2008 and the largest commodity murabaha sukuk in the ringgit market. The bank was also bookrunner on the first and largest project financing sukuk in Malaysia with MRCB Southern Link sukuk. This deal had a senior tranche for M$845 million, a junior sukuk for M$199 million and a M$220 million syndicated loan.
HSBC Amanah took steps to maintain its position in new markets as well last year. In Indonesia, it is still the only foreign bank to have an Islamic unit and has worked closely with the regulators to develop a sukuk market.
In Malaysia, HSBC is working on the first sukuk transaction by a foreign borrower in the ringgit market and is the number one foreign bookrunner in the local sukuk market. The leading Malaysian bank, CIMB, had an impressive year in its home market but its capabilities in the GCC region are limited.
