MALAYSIA: Viable Chip seeks to extend maturity dates for its Islamic debt securities

Wednesday, 5th August 2015

S&P 500 Shariah Dow Jones Islamic World FTSE Shariah All World Russell - IdealRatings Islamic Global 1,816.01 2,911.29 2,008.52 1,901.57 ▼ -4.34 (-0.24%) ▼ -6.64 (-0.23%) ▼ -7.04 (-0.35%) ▼ -9.04 (-0.47%)

HIGHLIGHTS: IIFM to release new standards this year – Indonesia plans Islamic treasury bill sale – Iran looking to establish brokerage activities with Azerbaijan – StanChart wins trustee mandate for first Islamic ASEAN Passport Fund

This week's poll question: Does the weakness of the Malaysian ringgit have an effect on pricing of the global Sukuk market?

IIFM to provide guidance on Islamic derivative instruments; to issue new standards this year Daily Cover GLOBAL: International Islamic Financial Market (IIFM) is targeting to issue two new standard agreements this year as work on certain Islamic derivative instrument templates progresses with several other frameworks in the pipeline. “We are currently working on two currency standards namely cross-currency and foreign exchange (FX) forward; and will soon commence work on standardization of specific Sukuk structures,” Ijlal Alvi, CEO of IIFM, told IFN. “Our target for this year is to issue two new standard agreements, by the will of Allah.” The Islamic cross-currency swap and (FX) forward product templates fall under IIFM’s Tahawwut Master Agreement – the world’s first international standardized documentation for over-the-counter Islamic hedging products, jointly published with the International Swaps and Derivatives Association. Used widely by conventional players to safeguard against market risks, cross-currency swap and FX forward transactions however raise various Shariah issues as they involve interests and speculation as well as uncertainties. There are, however, Shariah structures to replicate the effects of these instruments although they are generally more complex. Nonetheless, some scholars remain divisive over the validity of such arrangements. Not immune to the volatility of the currency rate or interest rate markets, Islamic cross-currency swap and FX forward would provide Shariah financial institutions with the means to manage currency fluctuations and cash flow as well as minimize their exposure to changing currency rates. Ijlal also confirmed that documentations on trade finance and corporate finance are also in the pipeline. Kazakhstan: An IFN Correspondent Report First Islamic microfinance company in Kazakhstan As is known, SMEs are the engines of development in developing countries, including Kazakhstan that has more than 350,000 entities. In 2014, the registered share of SMEs in the country’s annual gross domestic product (GDP) was 18%. Case Study Maxis Sukuk: Proof of the demand for high quality unrated papers Malaysian telecommunications company, Maxis on the 20th June 2015 issued the first series of its unrated 30-year RM5 billion (US$1.33 billion) medium-term note program. Amounting to RM840 million (US$217.5 million) in nominal value, the Islamic medium-term notes carry a tenor of 10 years via a Tawarruq arrangement. In an exclusive interview with CIMB, the deal’s sole manager, lead arranger and principal advisor, NABILAH ANNUAR provides a breakdown of the transaction. Today's IFN Alerts INDONESIA: Indonesian government to sell Islamic treasury bills at a discount on the 11th August to fund State Budget MALAYSIA: Viable Chip seeks to extend maturity dates for its Islamic debt securities GLOBAL: Iran stresses need for brokerage ties with Azerbaijani banks; wants banks and insurers to resume activities in Azerbaijan GLOBAL: AAOIFI’s Shariah Standards Review and Translation Committee holds meeting in Pakistan MALAYSIA: Standard Chartered Bank Malaysia wins mandate as trustee for first Shariah compliant ASEAN Passport Fund AMERICAS: Azzad Asset Management completes external Shariah audit; first US investment firm to do so MALAYSIA: PMB Shariah Aggressive Fund realizes 8.3% returns despite 7.9% drop in market GLOBAL: David Tayeh joins Investcorp as head of corporate investment in North America IVORY COAST: President of Cote d’Ivoire, Alassane Ouattara, to officiate the Africa Islamic Finance Forum organized by ICD INDONESIA: Indonesia’s finance minister to deliver keynote address at the IFN Issuers Forum taking place at the Ritz Carlton DIFC in Dubai on the 13th September UAE: Abdulla Al Awar to deliver keynote address at the IFN Issuers Forum in Dubai this September TURKEY: Turkiye Finans shows full support for IFN Turkey Forum 2015 as lead partner GLOBAL: IFN Asia Forum breaks 1,000-delegate mark yet again – dates for next year confirmed

IFN Issuers Forum 2015 13th September 2015 (Dubai) Africa Islamic Finance Forum 2015 17th & 18th September 2015 (Abidjan, Cote d’Ivoire) IFN Kuwait Forum 2015 19th October 2015 (Kuwait City) IFN Turkey Forum 2015 17th November 2015 (Istanbul) IFN Saudi Arabia Forum 2015 30th November 2015 (Le Meridien Hotel, Jeddah) 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)