Friday, June 19, 2015

SME Bank on track to becoming a fully-fledged Islamic bank; targets 90% in Islamic financing portfolio by end of 2015

Islamic Finance news Alert
http://redmoneyevents.com/main/event.asp?IFN=AfricaIslamicFinanceForum2015&c=form

Friday, 19th June 2015

S&P 500 Shariah
Dow Jones Islamic World
FTSE Shariah All World
Russell - IdealRatings Islamic Global
1,858.15
2,984.22
2,088.33
1,942.31
18.00 (0.98%)
33.10 (1.12%)
23.57 (1.14%)
21.46 (1.12%)

HIGHLIGHTS: SME Bank moving steadily towards fully-fledged Islamic bank status – Turkiye Finans names new CEO – UK and Malaysian Islamic banks launch new products


Daily Cover


GLOBAL: One major prevailing theme can be observed in the Islamic finance market in the last seven days: New – new deals, new reforms, new products, new identities and new people.

In the Sukuk space, we can anticipate new issuances from SapuraKencana Petroleum (SKPB), Maxis Communications and Toyota Capital Malaysia. What is most significant about the planned offerings is that they all fall within the long-tenor category: 30 years (for SKPB and Maxis) and 10 years (for Toyota Capital), demonstrating a gradual shift away from the traditional sweet spots of three, five and seven years; and a rising market preference for long-term Islamic papers.

Also noteworthy is that the SKPB’s program is the first private debt security to be issued under Malaysia’s new Launch and Lodge Framework – a regime recently introduced by the Securities Commission Malaysia which greatly streamlines the issuance process of wholesale products, effectively reducing the time-to-market for a variety of products including Sukuk and Islamic wholesale funds (See IFN Report Vol 12 Issue 24: ‘Recognizing the maturity of the Islamic capital markets — SC implements LOLA’).

It must be mentioned that the retail segment this week was particularly teeming with new products, a testament to the expanding demand for Shariah compliant financial products from the public. In Malaysia, Hong Leong Islamic Bank rolled out Tawarruq-based current and savings accounts; Bank Simpanan Nasional together with Prudential BSN Takaful brought to market a new investment-linked Family Takaful Scheme; and Amanah Mutual launched a new Shariah compliant fund. In the Middle East, Qatar Islamic Bank expanded its product range with a fleet and heavy equipment financing package while Alinma Tokio Marine Co got the final greenlight for a host of protection and savings solutions. In the UK, Al Rayan Bank introduced its highest-paying savings account yet – a 36-month fixed-term deposit.

The Islamic finance community this week also greeted a rebranded Arab Banking Corporation which has now assumed a new identity: Bank ABC in celebration of over three decades being in the business; while Gulf Finance Corporation took the chance to leave a deeper impression within the fraternity with a new brand logo.

In people news: Islami Bank Bangladesh welcomed to its board a new chairman (Mustafa Anwar) and new vice-chairmen (Yousif Abdullah Al-Rajhi and Professor NRM Borhan Uddin); while UAE-based United Arab Bank named Samer S Tamimi as its new deputy CEO, replacing Awni Al Alami. Wrapping up this week’s roundup with possibly the biggest people news headline: the departure of Turkiye Finans’s CEO Derya Gurerk. With the news engine focusing on Derya’s resignation amid allegations of corruption, the participation bank has, however, indicated to IFN that Derya left on good terms and affirmed that his decision to resign is independent of what had been claimed in some media outlets. The captainship of the bank has been passed over to Islamic banking veteran Osman Çelik.




IFN Global Trendswatch


Pakistan: An IFN Correspondent Report

First Islamic property fund launched in Pakistan
The first Shariah compliant REIT fund has been successfully launched in Pakistan by Arif Habib Group, a very famous and strong group in Pakistan. The REIT fund is called the Dolmen City REIT Fund (DCR fund).




Today's IFN Alerts

MALAYSIA: SME Bank on track to becoming a fully-fledged Islamic bank; targets 90% in Islamic financing portfolio by end of 2015

UK: Al Rayan Bank launches new Shariah compliant investment product

INDONESIA: Bank Muamalat Indonesia forms bancassurance partnership with Manulife Indonesia; launches new joint product

MALAYSIA: Hong Leong Islamic Bank introduces two new Tawarruq-based products

UAE: Shuaa Securities gains accreditation to provide Direct Market Access

MALAYSIA: RAM Ratings unveils new rating criteria and methodology

MALAYSIA: Sepangar Bay Power Corporation to make Sukuk payment on the 3rd July

MALAYSIA: Hijrah Pertama to make periodic distribution on RM2.92 billion (US$785.83 million) Sukuk at the end of the month

BAHRAIN: Capital Intelligence affirms Al Baraka Islamic Bank’s financial strength rating at ‘BB’; revises its foreign currency ratings outlook

MALAYSIA: RAM maintains HSBC Amanah’s ‘AAA/Stable/P1’ ratings

TURKEY: Osman Celik takes over leadership of Turkiye Finans
































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13th September 2015 (Dubai)

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5th October 2015 (Kuwait City)

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27th October 2015 (Cairo)

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


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Managing Counterparty Credit Risk, Basel III and Recent Regulatory Issues
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Islamic Financial Services Act (IFSA) 2013 & Islamic Banking Products
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Shariah Audit & Governance for Islamic Banking
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Islamic Finance Qualification
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