Maxis plans 30-year Islamic debt offering – Iran looking to launch Shariah compliant futures contract – Bank Nizwa to launch new Islamic SME products in September – New chairman for Islami Bank Bangladesh

Thursday, 18th June 2015

S&P 500 Shariah Dow Jones Islamic World FTSE Shariah All World Russell - IdealRatings Islamic Global 1,840.15 2,960.75 2,073.06 1,921.72 ▲ 4.10 ( 0.22%) ▲ 10.99 ( 0.37%) ▲ 7.54 (0.37%) ▼ 8.98 ( 0.47%)

HIGHLIGHTS: Maxis plans 30-year Islamic debt offering – Iran looking to launch Shariah compliant futures contract – Bank Nizwa to launch new Islamic SME products in September – New chairman for Islami Bank Bangladesh

This week's poll question: In regards to asset management, there are computer programs that can enact portfolio calculations in real time. Once the criteria and tolerance levels are set and approved, do these funds really need an ongoing Shariah board?

Long-term Sukuk the new flavor Daily Cover GLOBAL: Short and medium-term Sukuk may have long been favored by market players; however, recent trends are showing a gradual shift towards longer-term papers, in line with the rise of infrastructure projects and indicative of the growing tolerance from investors for longer time frames. Traditionally issued within the three and seven-year time frame, newer issuers are, however, leaning towards longer maturities, more notably in the 10-year and 30-year range. This week alone, two entities in Malaysia revealed their respective 30-year Sukuk plans: oil and gas service provider SapuraKencana Petroleum and communication services provider Maxis – decisions likely to be motivated by the government’s successful dual-tranche (10-year and 30-year) US dollar Sukuk earlier in April. And this gravitation in preference is also apparent among other sovereigns. For example, neighboring Indonesia followed closely on Malaysia’s heels with a 10-year US$2 billion offering in May; while relatively young player Turkey also brought to market its maiden long-term decade-long Sukuk six months ago – all of which are anticipated to pave the way for corporates to tap longer-term Sukuk opportunities. This unfolding development demonstrates the deepening and maturing of the Sukuk landscape as it facilitates the creation of a new benchmark curve for the respective jurisdictions; and equally as significant, puts to rest any market concerns over the longevity of Sukuk and investment returns. In fact, data from S&P Dow Jones Indices showed that long-term papers are outperforming the short-term (See IFN Report Vol 12 Issue 22: ‘Sukuk sector regains ground as new trends begin to emerge’). As nations across borders enter into a period of strong infrastructure growth and with the IDB continuing to put infrastructure financing high on its agenda evident by its engagement with the Asian Infrastructure Investment Bank and its own proposed Islamic Investment Infrastructure Bank; we can expect a spike in demand for longer-term funding and with that, a flush in opportunities for Sukuk. Iran: An IFN Correspondent Report Equity portfolio futures in Iran Common in many conventional exchanges, a futures contract is a contract through which the seller undertakes to sell, on a given date, a certain quantity of a specific underlying asset at an already-agreed price and, likewise, the other party thereto undertakes to buy such an underlying asset with the described specifications. Today's IFN Alerts MALAYSIA: Maxis to establish RM5 billion (US$1.33 billion) 30-year Sukuk Murabahah program INDONESIA: Indonesian government receives IDR4.47 trillion (US$334.8 million) in incoming bids at latest Sukuk auction; awards IDR2.69 trillion (US$201.48 million) MALAYSIA: 1Malaysia Development reveals Cabinet approval for its RM5 billion (US$1.33 billion) Sukuk issuance OMAN: Bank Nizwa to roll out new Islamic SME financing solutions by September PAKISTAN: Meezan Bank inaugurates online account opening facility KUWAIT: Kuwait Finance House collaborates with Zakat House to launch donation services on its ATMs OMAN: Fitch assigns ratings to six Omani banks; upgrades two banks' viability ratings MALAYSIA: Moody’s revises ratings on CIMB Islamic Bank BANGLADESH: Islami Bank Bangladesh elects new chairman and vice-chairmen GLOBAL: IFN Asia Forum breaks 1,000-delegate mark yet again – dates for next year confirmed SAUDI ARABIA: Islamic Corporation for the Development of the Private Sector chief to deliver keynote address at the IFN Saudi Arabia Forum MALAYSIA: Industry leaders address Islamic finance investment opportunities at IFN Asia Investors Day Forum 2015 SAUDI ARABIA: Saudi British Bank supports IFN Saudi Forum 2015 as lead partner

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) 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 (Kuala Lumpur) 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 8th - 9th September 2015 (Dubai) Funds Transfer Pricing 5th - 7th October 2015 (Kuala Lumpur) Trading Book Market Risk Management for Financial Institutions 8th - 9th October 2015 (Kuala Lumpur)