Monday, June 8, 2015

MALAYSIA: Khazanah Nasional completes issuance of its debut sustainable and responsible investment Sukuk


Islamic Finance news Alert

Friday, 5th June 2015

S&P 500 Shariah
Dow Jones Islamic World
FTSE Shariah All World
Russell - IdealRatings Islamic Global
1,837.97
2,970.17
2,087.08
1,935.60
-17.18 (-0.93%)
-28.11 ( -0.94%)

-9.10 ( -0.47%)

HIGHLIGHTS: Khazanah issues SRI Sukuk – BNM investigates 1MDB – Bank Asya’s takeover could affect investor sentiments – Overwhelming demand for Indonesia’s domestic sovereign Sukuk – New CEO at Affin Islamic


Daily Cover



GLOBAL: From Malaysia’s groundbreaking SRI Sukuk to Pakistan’s largest corporate Islamic bond sale, the global Shariah capital market was buzzing with excitement the past week.

At 4.3%, Khazanah Nasional issued the world’s first SRI Sukuk to the tune of RM100 million (US$26.97 million) while K-Electric is preparing to list its PKR22 billion (US$215.43 million) Sukuk program sold earlier this week. Malaysia’s TH Plantation also issued RM1 billion (US$269.67 million) in Sukuk Murabahah to national pilgrimage board Lembaga Tabung Haji. It is noteworthy to mention that Bank Negara Malaysia has launched a formal investigation into controversial sovereign investment arm 1Malaysia Development on its investments and deep debts. The investment company, which has issued Sukuk, has been under great public scrutiny over alleged mismanagement of funds (See IFN Report Vol 12 Issue 22: ‘1MDB unlikely to disproportionately affect Sukuk market’). In the region, we also saw Singapore attempting to bolster its Sukuk market: Jacqueline Loh of the Monetary Authority of Singapore confirmed that the regulator is working with other agencies to provid e greater clarity on Sukuk which may include a standard Sukuk issuance template to expedite the process.

Over in the Middle East, Barwa Bank approved plans to establish a US$2 billion Sukuk program while construction conglomerate Drake & Scull International kickstarted a series of investor meetings in the Middle East and Europe with a potential unrated senior perpetual Sukuk to follow. Following the procurement of regulatory approval, the National Shipping Company of Saudi Arabia will also be tapping the Sukuk market.

In the banking and finance segment: we saw the return of Islamic mortgage provider Amlak Finance after almost seven years of absence as it began trading on the Dubai Financial Market (DFM) on the 2nd June. There is also a possibility that Amlak could be included into the DFM General Index and sub-index of the banking sector, subject to index rules. In Turkey, headlines were made as the government formally seized Bank Asya, the largest participation bank, which has been embroiled in a political muddle. State-run Savings Deposit Insurance Fund now owns the Islamic financier. And while the market is in an uproar, Fitch opined that the Turkish banking sector (both conventional and participation) would not be significantly impacted by the change in management. A week prior to the seizure, president Erdogan inaugurated the Republic’s first state-owned Shariah compliant bank: Ziraat Participation Bank and expects the Shariah banking sector to at least tri ple its market share to 15-20% by 2023.

In people news: Adissadikin Ali, the previous CEO and president of Malaysia’s EXIM Bank, has been appointed to lead Alkhair International Islamic Bank (Malaysia) as CEO while Affin Islamic Bank also saw a change in leadership as Nazlee Khalifah has been named CEO following the promotion of previous chief Kamarul Ariffin Mohd Jamil to group CEO and Affin Bank managing director. IFN has also learned that SM Aamir Shamim, previously the senior vice-president and Islamic banking specialist of the treasury and investment group at the Islamic Bank of Thailand, has joined Bank Islami Pakistan as the head of treasury and financial institutions.









Nigeria: An IFN Correspondent Report


Newly-introduced cash reserve ratio (CRR) and its implication for non-interest banks in Nigeria
The Central Bank of Nigeria (CBN) in its recent Monetary Policy Committee meeting (MPC) in May 2015 made some adjustments to the existing CRR which earlier stood at 20% and 75% for private and public sector deposits respectively. In its recent meeting the MPC changed the CRR to a harmonized one of 31% for both private and public sector deposits. This is in addition to the statutory liquidity ratio (SLR) of 30%. In effect, banks including non-interest financial institutions (NIFIs) are required to keep aside 61% of their total deposits while using only 39% for investment and financing purposes.



IFN Global Trendswatch


Highlights: Euro volatility - IMF urges Fed to wait – Tension between US shale and OPEC – India takes an oil stand – HSBC struggles – Global bond volatility – Chinese bubble ready to burst?







Today's IFN Alerts


MALAYSIA: Khazanah Nasional completes issuance of its debut sustainable and responsible investment Sukuk

MALAYSIA: Profit payment for OCK Setia Engineering’s Sukuk payable today

MALAYSIA: Grand Sepadu to issue up to RM210 million (US$56.63 million) in Sukuk, comprising of three tranches

INDONESIA: Indonesia receives IDR4.84 trillion (US$363.97 million) in bids for sovereign Sukuk; awards IDR1.69 trillion (US$127.09 million)

UAE: Emirates Airline’s Sukuk lists on NASDAQ Dubai

TURKEY: Turkish government’s takeover of Bank Asya could potentially create moderately negative impact on investor sentiments

MALAYSIA: Bank Negara Malaysia launches formal investigation into 1Malaysia Development

GLOBAL: IDB signs MoU with Fonds Gabonais d'Investissements Stratégiques

SAUDI ARABIA: Ports Development Company to expand King Abdullah Port with SAR1 billion (US$266.57 million) Islamic bridge financing facility

PAKISTAN: Life Medicine Company employee arrested for Islamic finance scam

UAE: NASDAQ Dubai admits Hong Kong’s and Dubai Islamic Bank’s Sukuk for trading on the exchange

MALAYSIA: RAM downgrades ratings of Bernas’s Sukuk

MALAYSIA: RAM maintains Lafarge Malaysia’s Islamic securities program ratings at ‘AA2/Stable/P1’

AZERBAIJAN: Moody’s assigns counterparty risk assessments to Islamic finance players in Azerbaijan

MALAYSIA: Nazlee Khalifah now at the helm of Affin Islamic Bank

































REDmoney events


IFN Europe Forum 2015
10th June 2015 (Luxembourg)

IFN Issuers Forum 2015
13th September 2015 (Dubai)

IFN Kuwait Forum 2015
5th October 2015 (Kuwait City)

IFN Egypt Forum 2015
27th October 2015 (Cairo)

IFN Turkey Forum 2015
17th November 2015 (Istanbul)

IFN Saudi Arabia Forum 2015
30th November 2015 (Jeddah)


REDmoney training


Legal & Documentation Issues in Islamic Structured Finance
8th - 9th June 2015 (Dubai)

Funds Transfer Pricing
6th - 8th July 2015 (Hong Kong)

Managing Counterparty Credit Risk, Basel III and Recent Regulatory Issues
9th - 10th July 2015 (Hong Kong)

Understanding Islamic Contracts: Structuring & Legal Issues
17th - 19th August 2015 (Dubai)

Islamic Financial Services Act (IFSA) 2013 & Islamic Banking Products
18th & 25th August 2015 (Istanbul)

Shariah Audit & Governance for Islamic Banking
20th - 21st August 2015 (Kuala Lumpur)

Islamic Finance Qualification
23rd - 25th August 2015 (Dubai)

Advanced Sukuk & Islamic Securitization
24th - 26th August 2015 (Istanbul)

Undertaking Effective Litigation & Recovery in Islamic Finance Facilities
7th - 8th September 2015 (Kuala Lumpur)

Sharia’a Compliance & Audit for Islamic Banks
10th - 11th September 2015 (Dubai)

Islamic Finance Qualification
5th - 7th October 2015 (Kuala Lumpur)

Funds Transfer Pricing
5th - 7th October 2015 (Kuala Lumpur)

Trading Book Market Risk Management for Financial Institutions
8th - 9th October 2015 (Kuala Lumpur)

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