RAM Ratings sees important role for Japanese participation in growing the Islamic Finance market

Published on 12 November 2014

RAM Ratings sees an important and growing role for Japan to support development of the Islamic Finance market. This was the message delivered at an Islamic Finance conference jointly organised by RAM and Rating and Investment Information, Inc (R&I) of Japan today.

Speaking at the conference, Siew Suet Ming, head of structured finance ratings at RAM said, "We have seen increasing Japanese interest in Islamic Finance and Sukuk financing, particularly in recent times as investors look beyond Japan’s domestic market for yield pick-up".  The joint-conference also discussed the position and value of Islamic Finance for Japanese issuers and investors. Other speakers at the conference included representatives from Waseda University, Bank of Tokyo-Mitsubishi UFJ and Mizuho Bank.

In Japan, the tax reforms were introduced in 2011 to level the playing field for the issuance of J-Sukuk and conventional bonds for tax purposes, and amendments made to the Japanese Securitisation Law to facilitate the issuance of the J-Sukuk. While there has yet to be any issuance of J-Sukuk in the Japanese market, BTMU Malaysia Berhad - a wholly-owned unit of Bank of Tokyo-Mitsubishi UFJ, Japan's largest lender - became the first Japanese bank to enter the Sukuk market in September this year when it debuted a $500 million Sukuk programme in Malaysia.

Owned by the Nikkei Group, R&I is Japan's largest credit rating agency with nearly 4 decades of bond market and credit rating experience. The conference was participated by more than 150 members from financial institutions, insurance companies, pension funds and corporates in the Japanese capital market.

Media contact
Siew Suet Ming
+603 7628-1171
suetming@ram.com.my