Posted on 09 May 2012 by Laxman | Email|Print
Indonesia’s Islamic banking sector has been growing 40.2 per cent annually over the last five years, outpacing growth in conventional of 16.7 per cent a year over the same period. Deputy Governor of Bank Indonesia, the country’s central bank, Halim Alamsyah forecast that Shari’ah-compliant banking could account for 15-20 per cent of Indonesia’s banking industry within 10 years, from just over four per cent currently.
“We are confident Syariah (Shari’ah) finance will stimulate economic growth to a higher level and enhance the stability of the financial system,” he said……………………………………….Full Article: Source
Posted on 09 May 2012 by Laxman | Email|Print
National Industrialization Co (Tasnee) and Sahara Petrochemical Co have agreed a 5.09 billion riyal ($1.36 billion) loan with nine local banks to fund development of three new factories.
The 16-year syndicated loan will finance investment in a new complex producing acrylic acid derivatives, the Saudi Arabian petrochemical producers said on Tuesday………………………………………..Full Article: Source
Posted on 09 May 2012 by Laxman | Email|Print
Riyadh-based National Industrialization Company, or Tasnee, will this month issue its first Islamic bonds, or sukuk, under an SAR 5.575 billion program. The sukuk will be privately placed with investors resident in the Kingdom of Saudi Arabia and is solely arranged by HSBC Saudi Arabia, which acted as the Shariah advisor as well.
The first of the series is expected to carry a floating rate of six months SIBOR reference rate………………………………………..Full Article: Source
Posted on 09 May 2012 by Laxman | Email|Print
The National Bank of Abu Dhabi (NBAD), has launched its Sukuk Income Fund, a unique product investing in Sharia-compliant investment instruments that offers investors attractive returns with low levels of risk.
The NBAD Sukuk Income Fund is an open-ended and actively managed product targeting a profit rate of 5% based on current market conditions. Any income will be distributed semi annually. It is open to institutional and individual investors who can invest as low as USD500 either through lump sum or regular savings plans………………………………………..Full Article: Source
Posted on 09 May 2012 by Laxman | Email|Print
Dubai Islamic Bank (DIB) has mandated five banks for an Islamic bond, or sukuk, due to be issued at the end of May, three sources familiar with the matter told Reuters on Tuesday.
The lender has picked HSBC, National Bank of Abu Dhabi, Emirates NBD, Deutsche Bank and itself for the deal, the sources said, requesting anonymity………………………………………..Full Article: Source
Posted on 09 May 2012 by Laxman | Email|Print
The yield premium investors demand to hold Dubai’s unrated Islamic bonds over Malaysia’s declined to a record after the emirate’s state-linked companies made progress in settling $15 billion of debt due this year.
The spread on Dubai’s 6.396 per cent sukuk due November 2014 over Malaysia’s investment-grade 3.928 per cent notes maturing in June 2015 has fallen 98 basis points this year to 189 yesterday, according to data compiled by Bloomberg………………………………………..Full Article: Source
Posted on 09 May 2012 by Laxman | Email|Print
Investors in Dana Gas PJSC (DANA)’s $1 billion Islamic bonds hired Linklaters LLP to help negotiate the restructuring of the debt due in October, three people familiar with the matter said.
The London-based law firm was hired last month, according to the people who declined to be identified because the information is private. Linklaters and Dana Gas declined to comment………………………………………..Full Article: Source
Posted on 09 May 2012 by Laxman | Email|Print
Indonesia sold 1.015 trillion rupiah ($110.39 million) of sharia government bonds in an auction on Tuesday with six-month sharia T-bills attracting the most incoming bids, according to the debt office.
Yields of 10-year and 15-year project-based sukuk were flat relative to previous auctions………………………………………..Full Article: Source
Posted on 09 May 2012 by Laxman | Email|Print
Bahrain plans to issue a sovereign bond by the summer, its central bank said on Tuesday, a sign that the Gulf country is confident it can draw international investors despite ongoing social unrest and budgetary pressures.
A year of clashes between protesters from the Shi’ite majority and security forces has weighed on the small non-OPEC oil exporter, eroding capital parked in its mutual funds, while fiscal handouts have raised the average oil price the kingdom needs to balance its budget to near-market levels………………………………………..Full Article: Source
Posted on 09 May 2012 by Laxman | Email|Print
Bank Islam Malaysia Bhd is still keen on buying a stake in a Islamic financial institution in Indonesia, but is awaiting further clarification on the country’s shareholding regulations for commercial banks.
BIMB Holdings Bhd group managing director and chief executive officer Johan Abdullah said no decision has been made on potential Indonesian acquisitions for now………………………………………..Full Article: Source
Posted on 09 May 2012 by Laxman | Email|Print
Too often over the past five years the interests of customers at both conventional and Islamic banks have been neglected as bank management has focused on bonuses and share price. If banks neglect customers’ interests, then they will lose those customers.
That was the message from Central Bank of Bahrain (CBB) Governor Rasheed Al Maraj to delegates at the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) conference. “This theme of looking after the interests of customers is carried in the AAOIFI Governance Principles paper issued in 2005,” he said………………………………………..Full Article: Source
Posted on 09 May 2012 by Laxman | Email|Print
Liquid wealth of Shariah-sensitive investors in the GCC is expected to add more than $70 billion to Islamic funds by 2013, Ernst & Young Islamic Funds and Investments Report 2011 said.
“This, along with the fact that Islamic funds industry had registered a growth of 7 percent in AuM last year - shaking off a period of stagnation - indicates a significant opportunity to harness the full potential of Shariah-compliant investments”, David McLean, Chief Executive of the World Islamic Funds and Financial Markets Conference, said……………………………………….Full Article: Source
Posted on 09 May 2012 by Laxman | Email|Print
Islamic banking was created as a separate path of financing in order to comply with prohibitions stipulated by Islamic law. Also referred to as Sharia law, Islamic law can be considered God’s law as interpreted by Muslims.
Islamic scholars called Muftis in the Sunni tradition and Mullahs in the Shia tradition are charged with interpreting this law. The central texts of Sharia law are the holy book of the Qur’an, and the examples set forth by Muhammad and his early followers are documented in a collection of texts called the Hadith………………………………………..Full Article: Source
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