T he following borrowers are expected to sell Islamic bonds, which use asset returns to pay investors to comply with the religion's ban on interest. Sales of so-called Sukuk globally increased to $20.2 billion last year from $14.1 billion in 2008. They climbed 31 percent to $4.8 billion so far this year. Qatar Islamic Bank, the Gulf state's biggest Shariah-compliant bank plans to sell as much as $750 million of sukuk in its first Islamic debt offering, Chief Executive Officer Salah Mohammed Jaidah said in an interview last week. Talks with rating service providers have been completed and the bonds are likely to be sold in the second half of this year, he said. Abu Dhabi Tourism Development & Investment Co., a state- owned developer of hotels in Abu Dhabi, hired banks including Standard Chartered Plc, Citigroup Inc. and BNP Paribas to sell bonds as it seeks long-term financing for projects, two people familiar with the transaction said. TDIC may seek 10-year funding, one of the people said. Nakheel PJSC, the property unit of Dubai World, which is restructuring $10.5 billion of debt, plans to sell Islamic bonds that will give an annual return of 10 percent to trade creditors, two people familiar with the proposal said last month. The deal is conditional on trade creditors representing at least 95 percent of the value of all claims agreeing to the deal. On May 13, the company reached agreement with trade creditors for more than 50 percent of the claims and repaid $980 million of bonds due on the same day. Qatari Diar Real Estate Investment Co, the Qatari developer may raise about $1.5 billion selling 10-year conventional bonds and five-year Islamic securities, a person familiar with the sale plan said. HSBC Holdings Plc and Barclays Capital are among banks expected to manage the sale, which could be completed during the next three months, according to the person. Moreover, the government of Indonesia will trim the size of its planned sale of Islamic bonds from $750 million because of concern that Greece's debt crisis will spread, said Rahmat Waluyanto, director general at the finance ministry's debt management office. It also plans to sell rupiah-denominated Islamic bonds to individual investors in October or November, Waluyanto said. The nation's debt is rated Ba2 by Moody's and BB by S&P.
