V12i36: Project finance: Pushing ahead

Rapids • Deals • News • Takaful • Asset Management • Ratings • Moves
9th September 2015 (Volume 12 Issue 36)
United we stand Working together makes us stronger, and collaboration helps us to learn. This week we take a look at the latest news from the project finance sector, where Islamic and conventional banks are working together to develop new markets, create new structures and construct new pillars with which to support the burgeoning growth of global markets. While challenges remain, it is encouraging to see the great steps forward being taken within the project finance sector and how these are rippling outward to positively impact the wider industry. Our IFN reports this week tackle both the positives and negatives of the current climate: with a look at how Malaysian Islamic banks could benefit from the economic challenges they are facing, as well as new developments in the Philippines. Our Correspondents come to you from Indonesia, Malaysia and the UAE and also cover risk management, law and regulations while our Analyses this week explore Qatar and structured finance. Our Features are brought to you by Tawreeq Holdings on supply chain finance and Fitch Ratings on Africa, while we also have a Special Report from Zayd Chit Funds, and an interview with the CEOs of INOKS Capital and Sidra Capital. We are also delighted to bring you the very first column from our new IFN Columnist Mohammed Amin. United we stand, divided we fall, as the saying goes, and our issue this week displays the strength and stability that our industry is known for. With the IFN Issuers Forum coming up in Dubai on the 13th September, we look forward to seeing many of you there to cement this spirit of cohesion and collaboration. Cover Story Project finance: Pushing ahead Project finance has had a stormy ride, but the overall trajectory in recent years has been positive. As the oil and gas industry takes a battering, what is happening in the Islamic project finance market and where are the opportunities coming from? LAUREN MCAUGHTRY gives an overview of the current climate and looks at what we can expect for the future. Column A letter from Amin While I have been writing technical articles for publication since early 1997, this is the first time I have been a columnist. The editor has asked me for one piece each month, on anything which is relevant, readable and legal. IFN Reports • Saudi issuers turning to Sukuk market despite weak oil price • Investra makes sophomore Shariah deal, grows UK real estate portfolio • Economic storms bring unexpected bonus for Islamic banks • Amid economic turbulence, Malaysia sees opportunities in expressway sector • Sovereign Sukuk: Mediterranean issuances • BCA Syariah graduates into tier-2 rank; eyes larger Islamic banking market share • IFN Weekly Poll: In a bid to expand its Shariah banking industry, the Philippines recently filed a new Islamic banking bill. Assuming this legislation propels the country’s Shariah financing activities, in what areas will we see most growth? IFN Country Correspondents • New BNM concept paper issued • Rules on syndicated financing of Islamic banks • Update on recent developments in the UAE Islamic finance space IFN Sector Correspondents • Truth in Lending Act disclosure changes finally here • Withdrawal risk of profit-sharing investment accounts in Islamic banks IFN Country Analysis • Qatar: Internationalizing Islamic finance IFN Sector Analysis • Shariah compliant structured finance Case Study Bank Islam’s syndicated project financing facility for a hydropower plant project Malaysia’s Bank Islam late last month announced the conclusion of its RM121.44 million (US$28.76 million) Tawarruq financing for Kerian Energy. The transaction marks the bank’s first involvement as the lead arranger for a syndicated project financing facility for a hydropower plant project. In an exclusive interview with Zukri Samat, the managing director of Bank Islam Malaysia, NABILAH ANNUAR provides a detailed account of the transaction. Event Report Global Ethical Finance Forum 2015 A recent two-day forum on global ethical finance opportunies gathered 300 delegates from across the ethical finance industry including Islamic finance, socially responsible and impact investing. Held in Scotland on the 1st-2nd September, the delegates included industry leaders, academics, students, and financial service participants from across the Middle East, Africa, East Asia, Europe and North America. SUHAIL AHMAD brings us a summary of the events. Special Report India: Islamic banking and finance review The last one year can be categorized as a mixed bag for the Islamic banking and finance sector in India with a lot of positive developments and some negative developments as well. Key challenges remain the apathy of the government (including elected representatives and the bureaucracy), a lack of general public awareness and a huge shortage of qualified Shariah scholars and professionals. SAIF AHMED provides an overview of the Islamic banking and finance landscape in India. Features Shariah compliant supply chain finance: Empowering growth and sustainability Islamic finance has been gaining considerable attention and global acceptance in recent years, and Africa is now the new frontier for growth. HAITHAM AL REFAIE writes. Islamic finance in Africa in its infancy; important initiatives underway Islamic finance is a fast-developing activity throughout global markets. Historically, Islamic finance has been dominant in Malaysia and the GCC; however, it can now be seen that a new frontier is expanding throughout the Middle East, Indonesia, the UK, Luxembourg, Hong Kong, North Africa and some sub-Saharan African countries. BASHAR AL NATOOR delves further. Interview Interview with CEOs of INOKS Capital and Sidra Capital Earlier this year, Sidra Capital and INOKS Capital caused a stir in the world of Islamic finance when they announced that the Sidra-Ancile Global Structured Trade Investment Fund is the world’s largest Islamic structured trade investment fund with more than US$69.3 million in assets under management as at the 31st June 2015.  CONTACTS Editorial: Sasikala Thiagaraja Direct Line: +603 2162 7800 ext 34 Finance: Faizah Hassan Direct Line: +603 2162 7800 ext 26 Sales: Dubai: Geraldine Chan Direct Line: +971 4 427 3628 Kuala Lumpur: Steve Stubbs Direct Line: +603 2162 7800 ext 55 Subscriptions: Dubai: Geraldine Chan Direct Line: +971 4 427 3628 Kuala Lumpur: Siti Amilia Amir Amzah Direct Line: +603 2162 7800 ext 27