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GLOBAL: This week Fitch
Ratings confirms what has been observed by IFN in the past weeks – that the
Sukuk sector is off to a solid start this year, despite challenging market
conditions. In its latest report, the rating agency noted that new Sukuk
issuances from the GCC+7 increased 13% year-on-year in the first three
months of 2015. Total Sukuk and bond offerings for the first quarter were
up 47% from the October-December 2014 period while Islamic syndicated deals
in the GCC and Malaysia surged 198% on a quarter-to-quarter basis. Although
Sukuk accounted a smaller portion of total new issuances in the first
quarter against the fourth quarter of 2014, Fitch however optimistically
expects Islamic finance to continue its rapid growth trajectory. Just this
week, Kuveyt Turk announced the successful issuance of its debut ringgit
offering under its RM2 billion (US$561.94 million) Malaysian ringgit
program.
Sukuk aside, there were also other promising developments in the wider
industry this week. Kazakhstan’s president Nursultan Nazarbayev according to
national news agency Kazinform signed amendments and additions to existing
legislative Acts on Islamic finance and insurance – a commitment to
enhancing the country’s Shariah finance landscape. While in the Middle
East, the region is on course to welcoming its first Shariah compliant
global brokerage firm, made possible by the MoU signed between Saudi-based
Itqan Capital and UAE’s Mubasher Financial Services. Palma Holding and
Ibdar Bank are aggressively making a name for themselves in the Shariah
compliant aviation leasing segment as this week the joint venture concluded
a deal for Falcon Aviation Services which involved the acquisition (and
subsequent leasing) of three BombardierQ400 NextGen aircraft.
In Asia, it has been revealed that Pakistan’s BankIslami is keen to expand
its operations through the potential acquisition of embattled KASB Bank,
one of smallest lenders in the Republic. On the flipside, India’s SBI
Mutual Fund (according to the Times of India) has shelved its plan of
launching an Islamic equity fund – one that was highly anticipated last
year but cancelled at the 11th hour.
The IDB continues its development agenda through Shariah compliant means,
by approving over US$353 million in financing to fund development projects
in various member countries. The multilateral organization also confirmed
that it will be signing an agreement to establish an IDB Group Gateway
Office in Cairo, while refuting claims that the bank is holding back
further financing to Egypt until the country pays off its overdue debt. IDB
Group chairman Dr Ahmad Mohamed Ali affirms that Egypt has one of the best
portfolios and records of repayment with the group.
In people news, Malaysia’s RHB Banking Group, the parent of RHB Islamic,
named Khairussaleh Ramli as group CEO and group managing director and he is
also to lead RHB Capital as CEO/managing director. This appointment, which
will be effective on the 5th May, comes ahead of the group’s
proposed corporate restructuring. While in the UAE, National Takaful
Company (Watania)’s CEO Oussama Kaissi has tendered his resignation citing
personal reasons for his departure.
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