Monday, July 26, 2010

International Investment Group - Sets the Record Straight - It's Business as Usual

Apparently some easily excitable rookie investors panicked when they read IIG's earlier announcement that it was unable to pay some US$152.5 million on its US$200 million sukuk.

So today IIG set the record straight with announcements on the KSE, BSE, and Dubai markets.
"Notwithstanding this announcement IIG wishes to confirm that it and its businesses are continuing to trade normally."
AA certainly hopes that investors will come to their senses and recognize IIG for what it is.  And as well to place the comments in context: apparently "trading normally" up North has a different meaning than in some other markets.  

After all when you claim to follow Shari'ah principles and have the highest ethical standards, who on Earth would doubt your word?  Certainly, not AA.

5 comments:

Laocowboy2 said...

A very Sharia'a compliant group indeed. Not only do they not accept or pay interest, they evidently do not repay principal either. "Business as usual" I can however believe having seen that Grand Real Estate was one of the largest movers on the KSE yesterday,(Volume 11.6mn shares traded)although GPI was rather quiet - perhaps that will be today's "business as usual"?

Anonymous said...

Interesting how the sukuk market has seen some of the weakest underwriting standards, and ironic that god is ok with this.

I could drive a double decker bus through most of the covenants.

Abu 'Arqala said...

Laocowboy2

A grand stock to own. Trading I believe at 21% or so of par.

AlQabas has a report on the shareholders' meeting in Tuesday's edition.

OGM agreed to use reserves and a reduction in capital to rectify the accumulated losses - violation of Article 171 problem.

Some shareholders questioned some of the Company's asset sales/exchanges and reliance on intraGroup transactions. The answer: No one else would deal with us.

Questions about real estate investments of KD 30 mm or so which had paltry earnings. Seems they're blank land.

Not sure if I'll post anything. The press account of comments of the MD at Aayan Leasing may be more worthy of a post. Or neither may be.

Abu 'Arqala said...

Anonymous

I believe there is a sound hadith applicable here: "Tie your camel, then trust in God".

To which might be added "Read the prospectus before you invest" though the isnad on that one is definitely da'if.

Vanguard said...

Abu 'Arqala

great find...

"the isnad on that one is daif"...lol