FW: V15i21: Digesting Dana Gas: Lessons learned

 

 

V15i21: Digesting Dana Gas: Lessons learned 

Rapids • Deals • News • Takaful • Asset Management • Ratings • Moves
23rd May 2018 (Volume 15 Issue 21)
Done with Dana? It looks like Islamic finance market participants can finally breathe a sigh of relief as the controversial Dana Gas fiasco is drawing to a close, with the case potentially dropped as the Sharjah energy producer strikes a deal with its creditors. Yet, there are many questions left unanswered – would the new deal work to assuage market sentiments and regain the vote of confidence from investors and issuers? What kind of impact would this resolution have on the global Islamic finance market? These are important questions that need answering and it is only timely that IFN covers it. Click here for a comprehensive interactive timeline on the events leading up to the agreement between Dana Gas and its creditors. As one scandal closes, another (re)opens – or so it seems. Just as we put to rest the Dana Gas case, in Malaysia, the new government is reopening investigations into 1Malaysia Development, or more commonly known as 1MDB. The sovereign wealth fund, chaired by former prime minister Najib Razak, is at the center of a multibillion dollar international financial scandal involving both Islamic and conventional instruments. From 1MDB, our reports this week also cover a range of topics including the strong drive for Islamic SME financing in North and West Africa. Our case study details the latest Sukuk transaction from Sharjah Islamic Bank, our country analysis canvasses the Turkish finance landscape while our sector analysis explores the latest developments in the Islamic treasury space. We hope this will be another insightful read. Cover Story Digesting Dana Gas: Lessons learned Almost exactly a year ago, Dana Gas declared its maturing Sukuk to be "unlawful and unenforceable" — setting in motion a series of convoluted and controversial claims and counterclaims that limped litigiously through the courts for 11 long months. Last week, the company finally reached a tentative agreement with its creditors – but will it.... Column: Daud speaks From awareness to action In the last month, I managed a trip to Switzerland for some meetings with the International Federation of Red Cross and Red Crescent Societies (IFRC) in Geneva and to attend the 3rd annual RFI-Foundation Summit in Geneva. I would like to share some observations regarding this trip and some of the work I have been doing in the last few months... IFN Reports • North and West African Islamic banks tapping the SME market • 1MDB time bomb - The plot thickens • Sovereign Sukuk: Only the usual suspects • Company Focus: Bank Al Yousr • Uzbekistan to set up Islamic development bank as part of plans to accommodate Shariah finance • Ethmar for Islamic Microfinance seeks funding ahead of expansion • PODCAST: Moody's bullish on Saudi Arabia's Vision 2030; targets corporates as part of expansion strategy IFN Country Correspondents • Japan: Mizuho's deal implies something more than finance • The formation of the Malta Islamic Finance Association • The Philippines: Strengthening Al-Amanah Islamic Investment Bank • Hong Kong is ideal for SPVs in Islamic finance: A tax perspective • Islamic banks in Morocco: Looking for a place in the car financing market • Qatar: Pre-Ramadan flurry IFN Sector Correspondents • Islamic Microfinance: Supporting economic recovery and welfare with Islamic microfinance in Chechnya • Islamic leasing spreading across the globe as a financial powerhouse tool • SRI Ethical & Green: Islamic impact investing: Breaking the 'return versus impact' trade-off paradigm IFN Country Analysis • Turkey: Uncertainties threaten development IFN Sector Analysis • Treasury: Investing in Islamic liquid assets Case Study Sharjah Islamic Bank's Sukuk: Strong appetite The UAE saw a trio of Sukuk issuances in April. One of them, issued for US$500 million, was from Sharjah Islamic Bank (SIB). The issuance, which is the bank's second this year, has a profit rate of 4.23% and was oversubscribed by approximately US$450 million. DURGAHYENI MOHGANA SELVAM has the details of the transaction... Shariah Standard   • Controls on Gharar in financial transactions Back to Basics   • Arguments against the forbiddance of interest Features Takaful digital transformation Takaful plays an important part in wealth planning. This is especially true in the context of wealth preservation and wealth distribution as it creates an instant estate with a small premium. Takaful is one of life's necessities and probably the least-understood financial product. MUHAMMAD SHODIQ writes... 'One Belt, One Road' initiative – what's in it for Malaysia's Islamic finance industry Strong macroeconomic fundamentals, solid aggregate demand (consumption), a geostrategic location in the Straits of Malacca and modern infrastructure are the main factors that keep Malaysia on the radar of global investors for their strategic investment in the long run... VBI: A new phase for Islamic banking and finance in Malaysia Many things have changed since the advent of Islamic banking and finance in Malaysia in 1983. After rapidly growing for nearly four decades, the Islamic banking and finance industry can no longer be called an infant. The first three decades saw how the Islamic banking and finance industry learned to crawl and walk, guided mainly...  CONTACTS Editorial: Sasikala Thiagaraja Direct Line: +603 2162 7800 ext 34 Finance: Fatimah Omar Direct Line: +603 2162 7800 ext 26 Sales: Kuala Lumpur: Steve Stubbs Direct Line: +603 2162 7800 ext 55 Subscriptions: Kuala Lumpur: Nur Shahira Arzmi Direct Line: +603 2162 7800 ext 27
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