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Islamic Finance Briefing - Archive | December, 2010

India launches Shariah stock index

Posted on 31 December 2010 by Laxman  |  Email|Print

From Voanews.com: In India, the launch of a new share index of companies which meet the Islamic legal code has opened new investment opportunities for Muslims. India is a predominantly Hindu country, but it has one of the largest Muslim populations in the world.

India’s stock market has grown rapidly in recent years. But trading in stocks has posed a problem for Muslims, because of restrictions imposed by Islamic law, which does not allow investment in companies that sell goods such as alcohol and tobacco, or those which charge interest…………………………………….Full Article: Source

Islamic Index encourages Muslims to invest in Bombay Stock Exchange

Posted on 31 December 2010 by Laxman  |  Email|Print

From Abcnews: The Bombay Stock Exchange has launched a new stock index of companies that are compliant with the Islamic legal code, encouraging Muslims to invest in India’s fast-growing stock market. Islamic law imposes restrictions on investing in companies that charge interest and those that sell products such as alcohol, weapons or tobacco.

The index, called BSE TASIS Shariah 50, is composed of the 50 largest and most liquid stocks that adhere to Islamic law. The companies were chosen by the Taqwaa Advisory and Shariah Investment Solutions (TASIS), a Mumbai-based Islamic finance firm whose board members include legal experts and Islamic scholars…………………………………….Full Article: Source

Korean sukuk law rejection is a wake-up call

Posted on 31 December 2010 by Laxman  |  Email|Print

From Arabnews.com: The reported failure of the strategy and finance committee of the South Korean National Assembly chaired by Kang Ghil Boo in December to approve a finance bill introduced by the Ministry of Finance which would have given tax neutrality to alternative financial products such as sukuk (Islamic securities) is a wake-up call for the global Islamic finance industry.

The Ministry of Finance had proposed a revision to the taxation regulations with the aim of affording sukuk the same tax relief as conventional bonds to ensure that South Korean issuers would receive the same tax advantages as those applied to conventional bond issuers…………………………………….Full Article: Source

Yemen plans to boost 2011 sukuk to $500mln

Posted on 31 December 2010 by Laxman  |  Email|Print

From Gulf-times.com: Yemen, hit by rising security concerns and economic woes, will increase a planned 2011 Islamic bond to $500mn, the impoverished country’s finance minister said yesterday, but investors will have to pay high premiums.

Yemen had originally planned to raise about $250mn to $300mn from Islamic bonds, or sukuk, to diversify government financing and help lower a budget deficit currently running at around 8% of gross domestic product…………………………………….Full Article: Source

Nakheel gets Dubai funding to repay $750 mln sukuk

Posted on 31 December 2010 by Laxman  |  Email|Print

From Reuters: Troubled property developer Nakheel said on Thursday that it would repay its $750 million Islamic bond that matures next month, following funds being made available by Dubai.

The company said in a statement to emirate’s bourse that sufficient funds has been made available by the Dubai Financial Support Fund for repayment of the Islamic bond that is due on Jan 16, 2011…………………………………….Full Article: Source

Dubai shares gain as Nakheel gets state funds to repay bonds

Posted on 31 December 2010 by Laxman  |  Email|Print

From Bloomberg: Dubai shares advanced for a second day as Nakheel PJSC, the developer of palm-shaped islands off the city’s coast, said it received funds from the Dubai government to repay Islamic bonds maturing in January.

Emaar Properties PJSC, the United Arab Emirates biggest property developer, gained the most since Nov. 9. Arabtec Holding Co., the biggest construction company in the U.A.E. by market value, gained 1.6 percent. The DFM General Index advanced 0.5 percent to 1,630.52 at the 2 p.m. close in the emirate. The measure retreated 9.6 percent this year, its worst annual performance since 2008…………………………………….Full Article: Source

Gulf bond sales are bright economic sign

Posted on 31 December 2010 by Laxman  |  Email|Print

From Thenational.ae: A brightening global economic outlook and a shift in investor appetite towards emerging market debt helped to spur US$32.6 billion (Dh119.74bn) of bond sales in the Gulf this year.

That was down from the $42.9bn borrowed by companies and governments from investors last year, according to Bloomberg data. But it was still more than double the $15bn of bond sales in 2008 during the worst stretch of the financial crisis…………………………………….Full Article: Source

Malaysia, Yemen, Gulf Investment, France: Islamic bond alert

Posted on 31 December 2010 by Laxman  |  Email|Print

From Bloomberg: The following borrowers are expected to sell Islamic bonds, which use asset returns to pay investors to comply with the religion’s ban on interest. Global sales of sukuk fell 24 percent to $15.3 billion so far this year from the same period in 2009, according to data compiled by Bloomberg.
Issuance totaled $20.2 billion last year, up from $14.1 billion in 2008…………………………………….Full Article: Source

MARC downgrades Vastalux Capital’s Sukuk

Posted on 31 December 2010 by Laxman  |  Email|Print

From Cpifinancial.net: MARC said it has downgraded its rating on Vastalux Capital Sdn Bhd’s (VCSB) MYR 100 million Sukuk Musharaka facility to DIS from BB+IS following VCSB’s failure to redeem the remaining outstanding MYR 3.96 million of Sukuk on the final redemption date of 23 December 2010.

VCSB had redeemed MYR 21.04 million of MYR 25 million of outstanding Sukuk on 10 December 2010, prior to the final redemption date. VCSB had earlier proposed to restructure the Sukuk but had been unable to complete the restructuring prior to the final redemption date…………………………………….Full Article: Source

Islamic bonds to gain momentum in 2011

Posted on 31 December 2010 by Laxman  |  Email|Print

From Pakobserver.net: Qatar’s largest investment bank QInvest sees Islamic bond issuances continuing to gain momentum in 2011 while initial public offerings may also see some revival, the company’s chief executive said.
Shahzad Shahbaz said the firm is working with potential issuers in Qatar who are looking to tap the Islamic bond, or sukuk, market in 2011 after Qatar Islamic Bank’s oversubscribed $750 million sukuk demonstrated growing appetite and set a benchmark for other corporates to raise capital on favorable terms…………………………………….Full Article: Source

Malaysia: Stronger global Islamic finance hub status

Posted on 31 December 2010 by Laxman  |  Email|Print

From Btimes.com.my: The year 2010 saw the expansion of Islamic finance in Malaysia as the Islamic banking, takaful and Islamic capital market grew, in line with the economic recovery. During the year, the country strengthened its position as a global hub for Islamic finance, supported by the Malaysia International Islamic Financial Centre (MIFC) initiative.

The highlight of the achievements in the local Islamic finance sector last year (2010) has to be the recognition given to Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz locally and abroad…………………………………….Full Article: Source

Islamic finance continues to feature as an affirmative action tool in NEP

Posted on 31 December 2010 by Laxman  |  Email|Print

From Arabnews.com: Malaysian Prime Minister Mohd Najib Tun Abdul Razak last week reiterated in the Dewan Rakyat (the Parliament) that the country’s New Economic Policy (NEP), which promotes the economic empowerment of the indigenous peoples and the Bumiputeras (Malays) and their poverty alleviation through affirmative action, will continue and is still relevant today.

The NEP was first introduced in 1971 by no other person than the father of Najib, the much-revered late Tun Abdul Razak Hussein, Malaysia’s second prime minister since independence from the British…………………………………….Full Article: Source

Is Islamic finance the new challenge to Wall Street?

Posted on 31 December 2010 by Laxman  |  Email|Print

From Thestar.com.my: There are roughly 1.3 billion Muslims in the world, with 138 million in India and roughly 30 million in China. These are growing markets in terms of income and wealth. As the Muslim community seeks to invest in interest-free banking, Islamic funds have been growing in leaps and bounds.
Today, there are roughly US$800bil in Islamic banking funds, US$100bil in the sukuk (or Islamic bond) market and another US$100bil in takaful (Islamic insurance) and fund management business. Hong Kong, of course, introduced the Hang Seng Syariah Compliant China Index Fund in 2008 to attract Muslim investors…………………………………….Full Article: Source

UAE banks invested $953 mln via Islamic CDs

Posted on 31 December 2010 by Laxman  |  Email|Print

From Kippreport.com: Islamic lenders operating in the United Arab Emirates have so far invested 3.5 billion dirhams ($954 million) in sharia-compliant certificate of deposits, a central bank official said in published remarks.

Proceeds from such Islamic certificates were very close to the revenue of conventional instruments in which commercial banks invest, Seif al-Shamsi, executive director for the treasury department at the UAE Central Bank, told the Arabic language daily Al-Khaleej…………………………………….Full Article: Source

Malaysia’s central bank still reviewing Islamic mega bank bids

Posted on 31 December 2010 by Laxman  |  Email|Print

From Reuters: Malaysia’s central bank said on Wednesday it was still reviewing offers to set up mega Islamic banks, suggesting it could miss its target of awarding a licence this year as the industry struggles to create a well-capitalised sharia lender.

Bank Negara Malaysia is offering up to two new Islamic banking licences to foreign firms to set up banks with at least $1 billion of paid-up capital, a move that the industry hopes will spur more lending and create bigger Islamic banks that can compete with global lenders…………………………………….Full Article: Source

Kuwait rejects Islamic banks’ liquidity request

Posted on 31 December 2010 by Laxman  |  Email|Print

From Tradearabia.com: Kuwait’s central bank denied a request by Islamic lenders to grant them exceptions from liquidity ratio requirements and allow for the withdrawal of excess liquidity, a newspaper reported on Tuesday.

Kuwaiti Arabic daily Al-Rai said this was the second time the country’s central bank rejected such a proposal - a move some banks say put them at a disadvantage to conventional banks…………………………………….Full Article: Source

Bahrain’s Ithmaar signs $167mln loan with Ahli United

Posted on 31 December 2010 by Laxman  |  Email|Print

From Arabianbusiness.com: Bahrain’s Ithmaar Bank has signed a five-year $167m Islamic loan facility with Ahli United Bank, it said on Monday, marking its return to the credit markets since the financial crisis.

Hit by a 2008 regional real estate crash and a freeze in financing, Ithmaar had suffered heavy losses in 2009. In October 2009 the company said it planned to raise between $400m to $500m to repair its balance sheet, through a rights issue and by placing a convertible Islamic bond…………………………………….Full Article: Source

Islamic banking gaining momentum

Posted on 31 December 2010 by Laxman  |  Email|Print

From Poten.com: The last few years have been volatile for banks around the globe, but Islamic banking has managed to steer a more steady course and is growing fast. The sector is worth billions of dollars and, according to some estimates, has grown by 20 per cent.

The concept of Islamic banking is based on making profit through trade rather than interest, which is against Islamic religious law. Almost every bank in Qatar is boasting its Islamic credentials, and they are not alone…………………………………….Full Article: Source

IDB urges members to support ISFD

Posted on 31 December 2010 by Laxman  |  Email|Print

From Pakistantimes.net: A meeting of experts at the Islamic Development Bank (IDB) urged member countries to fulfill their pledges to the capital of the Islamic Solidarity Fund for Development (ISFD), which was established for poverty alleviation in the Islamic world.

The two-day meeting came up with a number of recommendations including establishment of a group of eminent figures to act as a high- level advocacy and resource mobilization vehicle for the ISFD, which will be mandated to undertake road shows for mobilizing resources for the fund…………………………………….Full Article: Source

Emirates NBD ranked largest ME bank

Posted on 31 December 2010 by Laxman  |  Email|Print

From Tradearabia.com: Emirates NBD has been ranked the largest bank in the Middle East by Global Finance, which also recognised Emirates NBD as one of the top 50 banks across all international emerging markets.

These independently compiled rankings by Global Finance, a monthly magazine headquartered in New York, confirm the status of Emirates NBD as the leading bank in the region – and as an increasingly significant presence globally at a time when key emerging markets continue to drive the global economy out of recession…………………………………….Full Article: Source

Zambia: Islamic banking framework

Posted on 31 December 2010 by Laxman  |  Email|Print

From Znbc.co.zm: The Central Bank has developed a framework for supervision of Islamic Banking in Zambia. Islamic Banking is a system which offers interest free loans to customers. Central Bank Governor Caleb Fundanga says the Bank has also trained staff in Islamic banking.

Dr. Fundanga says is also still waiting for the private sector to come forth and apply to establish an Islamic Bank in Zambia…………………………………….Full Article: Source

BoZ urges banks to go Islamic

Posted on 31 December 2010 by Laxman  |  Email|Print

From Daily-mail.co.zm: Bank of Zambia (BoZ) governor Caleb Fundanga has challenged local and foreign financial institutions to submit proposals to the bank for consideration on the operation of Islamic banking in Zambia.

Islamic banking is a financial service that meets the requirement of Shariah or Islamic law. It is designed to meet specific religious requirements of Muslims and there is no interest charged…………………………………….Full Article: Source

Dubai Islamic Bank promotes Chilwan and Al Nahdi

Posted on 31 December 2010 by Laxman  |  Email|Print

From Cpifinancial.net: Dubai Islamic Bank (DIB) said it has made some “strategic appointments” to support its growth and expansion strategy. Under the new management restructure, Dr. Adnan Chilwan has been appointed Deputy CEO - Chief of Consumer and Wholesale Banking, while Mohammed Al Nahdi has been appointed Deputy CEO - Chief Operating Officer.

“Addressing the needs of a constantly changing environment, the bank recognises the significance and value of streamlining its operations. Hence, it has announced the formation of a Business Group and a Support Group to ensure the successful implementation of its strategy through an effective organisation structure,” the bank said…………………………………….Full Article: Source

Ithmaar Bank, AUB in $167mln Morabaha deal

Posted on 31 December 2010 by Laxman  |  Email|Print

From Tradearabia.com: Ithmaar Bank, an Islamic retail and commercial bank, and Ahli United Bank (AUB), a full commercial bank based in Bahrain, have signed a $167 million (BD63 million) five-year secured Morabaha facility. The Morabaha facility (Sharia-compliant Islamic finance) is fully underwritten by Ahli United Bank.

The transaction marks the return of Ithmaar Bank to the credit markets after its reorganisation and transformation into an Islamic retail-focused bank earlier this year…………………………………….Full Article: Source

Is Egypt going Takaful?

Posted on 31 December 2010 by Laxman  |  Email|Print

From Ahram.org.eg: Islamic insurance has been steadily growing as a “Halal” alternative for commercial insurance that some believe to be illegal and risky. “If you want to invest in Halal items, with fair interest. If you want to insure your home without opposing God, come and let’s all cooperate and invest in Halal.”

So reads a statement on the facebook group page of Saudi Egyptian Insurance House, one of Egypt’s takaful insurance companies, in Latin letters…………………………………….Full Article: Source

T’azur named best takaful operator

Posted on 31 December 2010 by Laxman  |  Email|Print

From Tradearabia.com: T’azur Company, the Bahrain-based Islamic insurance company, was honoured with the prestigious ‘Best Takaful Operator’ award by CPI Financial, the international magazine for Islamic Business & Finance.

“We are deeply honoured to receive this award. This is another confirmation of t’azur’s financial stability, high level of service standards together with a highly competitive product range,” said t’azur’s chairman of the board of directors, Sheikh Dr Abdulaziz Bin Naif Al Orayer…………………………………….Full Article: Source

Prudential BSN Takaful launches PruBSN Ummah

Posted on 31 December 2010 by Laxman  |  Email|Print

From Bernama: Prudential BSN Takaful Bhd (PruBSN) has launched the PruBSN Ummah, a first of its kind product aimed at Muslims.

“We are very pleased with the response to PruBSN Ummah. Our products are designed with our consumers in mind and are packaged with our customers’ interests and needs at heart,” said PruBSN chief executive officer Azim Mithani…………………………………….Full Article: Source

Islamic banking thriving

Posted on 23 December 2010 by Laxman  |  Email|Print

From Iol.co.za: Islamic banking has emerged as one of the most rapidly expanding sectors of the global financial industry, with expectations that it will play a growing role in the years to come. Banks and financial institutions that comply with Islamic law (sharia) showed impressive resilience during the financial crisis that hit the world economy at the end of 2008, knocking out dozens of conventional banks, particularly in the United States.
This encouraged even countries with Muslim minorities, such as Britain, Germany, the US and France, to add Islamic banks to their conventional banking industry……………………………………….Full Article: Source

Tapping liquidity and the role of Islamic finance

Posted on 23 December 2010 by Laxman  |  Email|Print

Investment from the GCC and other Islamic jurisdictions has historically favoured key real estate real estate markets such as the UK. At the same time the UK market with support from legislative and industry bodies have, in response to the increasing demand for Shariah complaint structures, played an important role in facilitating the continued growth of the Islamic financing industry in the UK.
Similar developments are also taking place in other major European centres such as France, Luxembourg and further afield in Turkey, Hong Kong, and Singapore to name but a few……………………………………….Full Press Release: Source

Prospects for sukuk market remain bright

Posted on 23 December 2010 by Laxman  |  Email|Print

From Menafn.com: The sukuk industry has emerged as one of the main components of the Islamic financial system and has increasingly become an integral subset of the international financial system. Over the years, the sukuk market has grown by 10% to 15% annually to reach approximately $100bln and contributed to 12% of the global Islamic finance assets in 2009.
Prospects for the sukuk market remain bright. In 2009, global sukuk issuances surged by 58.8% yoy to $24.7bln compared to the $15.5bln raised in 2008……………………………………….Full Article: Source

QInvest CEO sees Qatar Sukuk, possible IPOs in 2011

Posted on 23 December 2010 by Laxman  |  Email|Print

From Arabianbusiness.com: Qatar’s largest investment bank QInvest sees Islamic bond issuances continuing to gain momentum in 2011 while initial public offerings may also see some revival, the company’s chief executive said.
Shahzad Shahbaz said the firm is working with potential issuers in Qatar who are looking to tap the Islamic bond, or sukuk, market in 2011 after Qatar Islamic Bank’s oversubscribed $750 million sukuk demonstrated growing appetite and set a benchmark for other corporates to raise capital on favorable terms……………………………………….Full Article: Source

Experts call to set up Islamic finance regulatory framework

Posted on 23 December 2010 by Laxman  |  Email|Print

From Ahlul Bayt News Agency: Standardisation of the Islamic banking policies, procedures and regulatory framework on a global level is important to propel the growth of the industry. That is the view of BBK investment banking arm Capinnova Investment Bank chief executive officer Jamal Hijres.
An important effort towards achieving international consistency was the creation of two multilateral institutions, the Accounting and Auditing Organisation for Islamic Financial Institutions and the Islamic Financial Services Board……………………………………….Full Article: Source

Basel III in support of the Islamic banking principal

Posted on 23 December 2010 by Laxman  |  Email|Print

From Globalarabnetwork.com: The Group of Governors and Heads of Supervision, the oversight body of the Basel Committee on Banking Supervision, announced a substantial strengthening of existing capital requirements and fully endorsed the agreements it reached on 26 July 2010.
These capital reforms, together with the introduction of a global liquidity standard, deliver on the core of the global financial reform agenda and will be presented to the Seoul G20 Leaders summit in November……………………………………….Full Article: Source

Pakistan: Islamic banks may begin issuing credit cards by 2011

Posted on 23 December 2010 by Laxman  |  Email|Print

From Brecorder.com: Islamic banks are likely to start issuing credit cards by 2011, Country Head, Al-Baraka Bank (Pakistan) Limited, Shafqat Ahmed informed business community on Wednesday. He said Al-Baraka Bank was also working on some new products including personal loan, which will probably be introduced next month.
Replying to a question regarding opening of Islamic bank branches in rural areas, he referred to a condition of State Bank of Pakistan (SBP) under which all Islamic banks have to open 20 percent branches in rural areas. He hoped that there would be lot of Islamic bank branches operating in rural areas within next five years……………………………………….Full Article: Source

Najib tells Maybank to lead the way to secure Malaysia’s future

Posted on 23 December 2010 by Laxman  |  Email|Print

From Bernama: Prime Minister Datuk Seri Najib Tun Razak has called on Maybank and other large institutions in the financial services sector to lead the way to secure the country’s future and help the next phase of Malaysia’s development.
“I am confident that Maybank will again rise to the occasion as it has in the past, especially given its current size, expertise and funding capabilities……………………………………….Full Article: Source

Al Khaliji and IBQ in final stages of merger talks

Posted on 23 December 2010 by Laxman  |  Email|Print

Qatar’s Al Khaliji and the International Bank of Qatar have announced progress in the proposed merger and said they are now entering final stages of negotiations and due diligence, including formal discussions with key regulators.
“The merger remains subject to approval from the relevant government and regulatory authorities in the country, as well as the board and shareholders of both lenders,” a joint statement said……………………………………….Full Press Release: Source

Fitch affirms Abu Dhabi Islamic Bank at ‘A+’; outlook stable

Posted on 23 December 2010 by Laxman  |  Email|Print

Fitch Ratings has affirmed Abu Dhabi Islamic Bank’s (ADIB) Long-term Issuer Default Rating (IDR) at ‘A+’ with a Stable Outlook, Short-term IDR at ‘F1′, Individual Rating at ‘C/D’, Support Rating at ‘1′ and Support Rating Floor at ‘A+’.
The affirmation of ADIB’s Long- and Short-term IDRs and Support Rating reflects the extremely high probability of support from the UAE authorities, if needed. Fitch’s opinion of likely support is based on the long history of support for banks in the UAE, the bank’s franchise and its prominent Abu Dhabi shareholders……………………………………….Full Press Release: Source

Islamic Finance: Zeti honoured with Lifetime Achievement Award

Posted on 23 December 2010 by Laxman  |  Email|Print

From Btimes.com.my: Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz was honoured with the Lifetime Achievement Award at the Annual Islamic Business and Finance Awards held in Dubai, United Arab Emirates.
In her acceptance remarks, she said Islamic finance was one of the fastest growing segments in the global financial system……………………………………….Full Article: Source

IFSB Secretary-General receives the 2010 Award for Outstanding Contribution

Posted on 23 December 2010 by Laxman  |  Email|Print

From Cpifinancial.net: Professor Datuk Rifaat Ahmed Abdel Karim, Secretary-General of the Islamic Financial Services Board (IFSB) is the recipient of the Islamic Business & Finance Award 2010 for Outstanding Contribution to the Industry
On December 14 2010, the IFSB announced that Professor Abdel Karim will end his term as the Secretary- General of the IFSB on 30 April 2011. He will be succeeded by Mr. Jaseem Ahmed. Professor Abdel Karim has been steering the IFSB from its inception in 2003……………………………………….Full Article: Source

Islamic business & finance awards 2010 – winners revealed

Posted on 23 December 2010 by Laxman  |  Email|Print

From Cpifinancial.net: Close to 300 distinguished regional and global industry professionals from around the world joined together in honouring the outstanding performance of leading Islamic financial institutions and individuals at the annual Islamic Business & Finance Awards, where a total of 30 accolades were granted
Held at Emirates Towers hotel in Dubai, the Awards ceremony celebrated achievement among top Islamic bankers, financiers and Islamic banking and finance institutions. Once again this year, Gulf-based institutions and individuals were able to compete head-to-head with their international peers, taking home more two thirds of the awards. Other winners were drawn from the United Kingdom, USA, Malaysia, Luxembourg, and Sudan……………………………………….Full Article: Source

Takaful International in medical services deal

Posted on 23 December 2010 by Laxman  |  Email|Print

From Tradearabia.com: Takaful International Company has signed a mutual co-operation agreement with Anadolu Medical Centre in Turkey to provide a wide range of medical services for its customers.
Anadolu Medical Centre has a specialised medical team in all disciplines including oncology, cardiac care, women’s health and IVF, neurological sciences, surgical sciences and orthopedics……………………………………….Full Article: Source

Arab economies to grow by more than 5pct in 2011

Posted on 23 December 2010 by Laxman  |  Email|Print

From Albawaba.com: The Arab economies will grow between 2.4% and 4.5% by the end of 2010 and rise by more than 5% in 2011. These positive remarks were made by Jassim Al Mannai, Director General of the Arab Monetary Fund.
According to him, the Arab economies and banks are in better position compared to those in other parts of the world. He added they were less affected by the global financial crisis. Al Mannai explained that the actions by several countries to confront the crisis by increasing spending and injecting additional liquidity to banks helped them to confront the crisis……………………………………….Full Article: Source

Shariah hedging derivatives start in Malaysia

Posted on 22 December 2010 by Laxman  |  Email|Print

From Bloomberg: Standard Chartered Plc and Bank Islam Malaysia Bhd. plan to offer Shariah-compliant derivatives in Malaysia that will allow investors to hedge against interest rates and commodity prices.
Standard Chartered, the U.K. bank that earns most of its profit from emerging markets, will begin selling contracts in the first quarter that provide protection from fluctuations in the cost of items such as rice and oil……………………………………….Full Article: Source

Saudi telecom Mobily secures $320 mln Islamic loan to fund expansion

Posted on 22 December 2010 by Laxman  |  Email|Print

From AP: Saudi Arabia’s leading mobile telecom operator Etihad Etisalat Co. says it has struck a 1.2 billion Saudi riyal ($320 million) financing deal with five local banks. The company, also known as Mobily, said in a statement Tuesday that the Islamic financing deal is aimed at funding its expansion plans.
The company said the 12-month loan can be extended for another six months, under the terms of the agreement……………………………………….Full Article: Source

Largest Sukuk deals gross $9.52 bln as of Q3 2010: KFH

Posted on 22 December 2010 by Laxman  |  Email|Print

The Sukuk industry has emerged as one of the main components of the Islamic financial system and has increasingly become an integral subset of the international financial system. Over the years, the Sukuk market has grown by 10 percent to 15 percent annually to reach approximately 100 billion US dollars and contributed to 12 percent of the global Islamic finance assets in 2009. Prospects for the Sukuk market remain bright.
In 2009, global Sukuk issuances surged by 58.8 percent year-on-year (Y-O-Y) to $24.7 billion (6.99 billion Kuwaiti dinars) compared to the $15.5 billion raised in 2008……………………………………….Full Press Release: Source

Persian Gulf taps Malaysia for Sukuk sales

Posted on 22 December 2010 by Laxman  |  Email|Print

From Bloomberg: Persian Gulf borrowers are selling ringgit-denominated Islamic bonds at a record pace in Malaysia to raise funds for expansion and take advantage of demand in the world’s biggest market for Shariah-compliant bonds.
Issuance surged to 1 billion ringgit ($318 million) this year, the most since 2008 when Gulf companies started tapping the Malaysian market, data compiled by Bloomberg show……………………………………….Full Article: Source

Gulf Investment, Saudi International, GE: Islamic bond alert

Posted on 22 December 2010 by Laxman  |  Email|Print

From Bloomberg: The following borrowers are expected to sell Islamic bonds, which use asset returns to pay investors to comply with the religion’s ban on interest.
Global sales of sukuk fell 24 percent to $15.3 billion so far this year from the same period in 2009, according to data compiled by Bloomberg. Issuance totaled $20.2 billion last year, up from $14.1 billion in 2008……………………………………….Full Article: Source

CBB Sukuk Al-Ijara oversubscribed

Posted on 22 December 2010 by Laxman  |  Email|Print

From Ameinfo.com: The Central Bank of Bahrain (CBB) announces that the monthly issue of the short-term Islamic leasing bonds, Sukuk Al-Ijara, has been oversubscribed by 335%.
Subscriptions worth BD33.5m were received for the BD10m issue, which carries a maturity of 182 days……………………………………….Full Article: Source

IDB says Mega Islamic Bank to start with $1bln

Posted on 22 December 2010 by Laxman  |  Email|Print

From Arabianbusiness.com: Islamic Development Bank, the Jeddah-based multilateral lender, said the Mega Islamic Bank will have an initial paid up capital of $1bn.
Mega Islamic Bank shall provide “liquidity management solutions in an effort to create an Islamic interbank market,” Islamic Development Bank said in an e-mailed statement. The bank will also originate and finance large projects across Muslim countries, IDB said……………………………………….Full Article: Source

Affin Islamic Bank targets 15-20 pct financing growth in 2011

Posted on 22 December 2010 by Laxman  |  Email|Print

From Bernama: Affin Islamic Bank Bhd is targeting a financing growth of between 15 and 20 per cent next year, says its Chief Executive Officer, Kamarul Ariffin Mohd Jamil. He said growth would be driven by both the consumer and corporate segments.
Currently, the consumer segment contributes 55 per cent of the bank’s total financing asset, which now stands at RM3.7 billion, he told reporters after a mock cheque presentation from Affin Islamic Bank to the International Islamic University Malaysia (IIUM) Endowment Fund here today……………………………………….Full Article: Source

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