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Islamic Finance Briefing - Archive | November, 2012

Omani firm is planning sukuk issue

Posted on 16 November 2012 by Laxman  |  Email|Print

Oman’s Al Madina Real Estate plans to issue the country’s first sukuk or Islamic bond in the first quarter of next year, its chief executive said. The sultanate is about to introduce Islamic finance, becoming the last of the Gulf states to do so, and the government is expected to issue regulations covering the industry in coming months.
The company plans to issue a five-year, $130 million sukuk through its sister firm Tilal Development Company, said chief executive Abdlrehman Awadh Barham………………………………………..Full Article: Source

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RoI prints 10-year sukuk at lowest yield

Posted on 16 November 2012 by Laxman  |  Email|Print

The Republic of Indonesia (RoI) continues to push the envelop on its sukuk fund raising when it priced on November 14 a 10-year, US$1 billion offering, which achieved a lower yield than the conventional bonds it printed earlier this year.
The Reg S/144A issue was priced at par with a periodic distribution of 3.30%. This is at the tight end of the final guidance of 3.35% area (+/- 5bp) and well inside the initial guidance of 3.50% area. The sukuk was quoted at 99.75 to par in the morning of November 15………………………………………..Full Article: Source

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Sri Lanka’s first Shariah-based income fund launched

Posted on 16 November 2012 by Laxman  |  Email|Print

The Islamic finance industry in Sri Lanka achieved another milestone in its fast evolving history, with the launch of Sri Lanka’s first-ever Shariahbased income fund recently. Structured as a unit trust, the Comtrust - Adl Mudarabah Fund is the second unit trust to be launched under the combined expertise of Adl Capital Limited and Comtrust Asset Management (Pvt.) Limited.
In 2011, Adl Capital and Comtrust successfully pioneered Sri Lanka’s first open-ended Shariah compliant equity fund, ‘The Crescent i-Fund’ and the launch of this income fund, which would invest only in Shariahcompliant money market instruments rather than equity, would offer investors with an alternative investment opportunity that offers regular returns………………………………………..Full Article: Source

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Amana Capital launches an investment fund

Posted on 16 November 2012 by Laxman  |  Email|Print

Heraymila Capital (Pvt) Ltd. (HCL) and Amana Capital Ltd. (ACL) jointly launched the Amana-Heraymila Shariah Fund, a balanced unit trust fund that will invest in Shariah-compliant listed equity and income securities. The initial unit offerperiod is from November 12, 2012 till 4.30 p.m. on November 18, 2012, and a unit is priced at LKR 10 during this period. The minimum investment in the Fund is LKR 10,000.
The Fund will offer easy accessibility, diversification, liquidity and stringent Shariah compliance to local and foreign investors. The Islamic financial services industry is gathering momentum in Sri Lanka in line with its growing popularity overseas. Global Islamic financial assets are expected to reach US$ 5 trillion in 2012………………………………………..Full Article: Source

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Fitch affirms Abu Dhabi Islamic Bank ratings

Posted on 16 November 2012 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 and Viability Rating (VR) at ‘bb’.
ADIB’s IDRs are driven by potential state support from the UAE authorities. A change in Fitch’s view of the willingness or ability of the UAE authorities to support ADIB would be negative for its IDRs and its Support Rating Floor………………………………………..Full Article: Source

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IBA borrows $60 mln for employment of Islamic banking

Posted on 16 November 2012 by Laxman  |  Email|Print

International Bank of Azerbaijan has borrowed $60 mln from Islamic Development Bank and other Islamic financial organizations, said the BoD Chairman Jahangir Hajiyev. Note that Islamic Banking Department in the structure of the IBA was established in September.
Islamic banking will be realized in stages. So, placement to new office, full formation o personnel, subordination of financing lines and current projects to department management, formation of investment portfolio and other issues must be solved. So, financing of legal entities and individuals and services to clients are planned to start from January, 2013………………………………………..Full Article: Source

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Omani firm plans $130 mln, 5-year sukuk in Q1 2013

Posted on 15 November 2012 by Laxman  |  Email|Print

Oman’s Al Madina Real Estate plans to issue the country’s first sukuk or Islamic bond in the first quarter of next year, its chief executive told Reuters on Wednesday.
Oman is about to introduce Islamic finance, becoming the last of the wealthy Gulf Arab states to do so, and the government is expected to issue regulations covering the industry in coming months………………………………………..Full Article: Source

Omani developer Tilal plans debut Islamic bond sale for mall

Posted on 15 November 2012 by Laxman  |  Email|Print

Tilal Development Company SAOC plans to raise 53 million rials ($138 million) in the first quarter in Oman’s first corporate Islamic bond sale to fund a mall expansion in the Persian Gulf nation.
The real estate company will use proceeds of the sale to expand the Muscat Grand Mall in the Omani capital, Tilal said in an e-mailed statement. Amanie Advisory House of Oman is advising on the issuance, it said. The sale will be the first for any company in the majority Muslim nation, according to data compiled by Bloomberg………………………………………..Full Article: Source

Hong Kong Sukuk bill comes too late

Posted on 15 November 2012 by Laxman  |  Email|Print

Hong Kong’s Sukuk bill is due to be completed by 2013, but according to interest insiders market interest has long gone. Although a bill be passed quickly into law local firms have lost their once healthy appetite for Sukuk, reports Reuters, citing said Marcellus Wong, Co-Chairman of the taxation policy committee at the Taxation Institute of Hong Kong.
“It is good to have the framework in place but market interest has gone. The consultation was expected a few years back; the market is not that buoyant now,” Wong is quoted as saying. “It is already a few years late.”……………………………………….Full Article: Source

Hong Kong’s sukuk bill on track but local interest dim

Posted on 15 November 2012 by Laxman  |  Email|Print

Hong Kong’s bill to facilitate the issuance of sukuk, or Islamic bonds, is expected to be ready early next year but initially at least, it may attract little interest among issuers.
In March, the government asked for industry feedback on the subject and this month, it said it aimed to introduce a bill in early 2013………………………………………..Full Article: Source

Mega sukuk issue creates ripples here

Posted on 15 November 2012 by Laxman  |  Email|Print

Singapore investors account for 18% of US$15.5b perpetual sukuk issued by Abu Dhabi bank, giving Islamic finance a big boost. ingapore investors dipped heartily into the world’s first syariah- compliant Tier 1 perpetual sukuk (Islamic bonds) despite the financial centre not being known for its appetite for Islamic finance.
So keen were Singapore investors on the offering that they accounted for 23 per cent or US$3.5 billion of the US$15.5 billion order book for Abu Dhabi Islamic Bank’s (ADIB) US$1 billion Tier 1 perpetual sukuk. In the end, however, allocations were scaled back and they ended up with 18 per cent of the issue………………………………………..Full Article: Source

Turkey’s sukuk to inspire other countries

Posted on 15 November 2012 by Laxman  |  Email|Print

Turkey’s successful sukuk – Islam-complaint bonds - issuance has paved the way for other countries, according to Mahmoud Mohieldi, a managing director at the World Bank, speaking at an Istanbul meeting.
“We witnessed a few weeks ago that Turkey had a successful sukuk issuance and the market received it very favorably. There was a good return. [This success] paved the way for not only Turkey, but also other countries, [to the sukuk market],” he said……………………………………….Full Article: Source

RAM reaffirms ratings on Ranhill Powertron’s Islamic debt programme

Posted on 15 November 2012 by Laxman  |  Email|Print

RAM Ratings has reaffirmed the AA1 long-term rating of Ranhill Powertron’s MYR 540 million Islamic Medium-Term Notes (IMTN) Programme, with a stable outlook. Ranhill Powertron is an independent power producer that operates a 190-MW combined-cycle, gas-turbine power plant (the Plant) in Kota Kinabalu, Sabah, under a 21-year power-purchase agreement with Sabah Electricity.
Ranhill Powertron earned full capacity payments (CPs) and maintained its sound operational track record in FYE 31 December 2011 (FY Dec 2011). Nonetheless, there was a MYR 0.32 million shortfall (or about one per cent) in potential CPs - a first for the Company - for January to March 2012; this was due to a lower-than-required average Equivalent Availability Factor arising from the prolonged shutdown of Block 2………………………………………..Full Article: Source

Bangalore firm set to launch Sharia-compliant chit fund

Posted on 15 November 2012 by Laxman  |  Email|Print

Infinity Consultants, a corporate finance advisory firm, has launched Zayd Chit Funds, a Sharia-compliant chit fund. “The chit fund is expected to be operational shortly in Bangalore and is compatible with the Chit Funds Act of 1982,” Saif Ahmed, managing partner, Infinity Consultants, said.
“The speciality of our fund schemes is that they allow one to utilise hard-earned money in a halal way, which is not the case with other chit funds,” he added………………………………………..Full Article: Source

Saudi Arabia to develop Islamic finance

Posted on 15 November 2012 by Laxman  |  Email|Print

Saudi Arabia is well-placed to play a crucial role in the development of Islamic finance since the largest Islamic banking institutes are based in Gulf Cooperation Council (GCC) countries.
According to Ahmad Mohammed Al-Joghaiman, executive vice president and chief financial officer of Saudi Electricity Company, the Kingdom’s dominant economy makes it the perfect contender to encourage banking that is carried out with strict adherence to Shariah law………………………………………..Full Article: Source

Key Islamic finance deal

Posted on 15 November 2012 by Laxman  |  Email|Print

Bahrain (KFH-Bahrain) has signed a strategic agreement with Tamkeen to provide finance for small and medium enterprises. Companies in Bahrain will be able to get accessible low-cost Islamic financing solutions from KFH-Bahrain, with a 50 per cent subsidy from Tamkeen, as part of its efforts to enable these firms to obtain the funds they need to develop their businesses.
“The funding that will be provided by this programme will offer accessible financing options for entrepreneurs seeking to grow their business,” said Tamkeen chief executive Mahmood Al Kooheji………………………………………..Full Article: Source

Ithmaar Bank Q3 loss $19.3 mln, nine month loss $15.6 mln

Posted on 15 November 2012 by Laxman  |  Email|Print

Bahrain-based Islamic bank Ithmaar Bank has reported a net loss of $15.6 million for the first nine months, against a profit of $6.7 million for the same period a year ago.
Ithmaar says operating income rose 14.21 per cent to $161.9 million for the nine months’ perid. “Ithmaar Bank’s core business areas are continuing to do well,” said HRH Prince Amr Mohamed Al Faisal, the bank’s chairman, “This is reflected in the growth in operating income… as well as the total income which grew about four per cent to $356.8 million, compared to $343.9 million for the same period last year.”……………………………………….Full Article: Source

Barwa Bank launches ‘private banking’ service in style

Posted on 15 November 2012 by Laxman  |  Email|Print

Barwa Bank, one of Qatar’s fastest growing Shari’ah compliant banking service providers, formally launched its Private Banking proposition in style, while making a significant contribution to future of children’s education, with an exclusive exhibition of coloured diamonds, co-hosted with renowned fashion house and jeweller, Asprey, London on the 13th of November, at the Museum of Islamic Art.
Hosting the event was His Excellency Sheikh Mohammad bin Hamad bin Jassim al Thani, Chairman of the Barwa Bank Group and, John Rigas, Chairman of Asprey, as well as important Barwa Bank clients, senior management and employees. (Press Release)

Non-interest banking in Nigeria -Tax issues

Posted on 15 November 2012 by Laxman  |  Email|Print

The storm surrounding the introduction of Non-Interest Banking (NIB) commonly called Islamic banking is gradually settling down and it is important to begin to exhume the challenges that might crop up in its operations with particular reference to the taxation of the sub-sector by the relevant tax authorities, especially the setting of standards for the type of taxes that apply and that are to be collected from the transactions.
As the name implies, Non-Interest Banking (NIB) is a system of financial services that provide unique services in accordance with Islamic religious jurisprudence and Sharia principle and fully regulated by the relevant regulatory authorities as provided for in sections 9, 23 and 52 of the Banks and other Financial Institution Act (BOFIA) 1991 as amended………………………………………..Full Article: Source

What are the benefits of Islamic finance? (Video)

Posted on 15 November 2012 by Laxman  |  Email|Print

Nigel Denison, executive director of Bank of London & Middle East, says Islamic Finance is increasingly attracting non Muslims in the UK as it is perceived as a safer and more ethical alternative. He spoke as part of Bloomberg Television’s “Faith in Finance.”.………………………………………Full Article: Source

GBP100mln Saudi - UK fund distributes second round of dividends to investors

Posted on 15 November 2012 by Laxman  |  Email|Print

Sidra Capital (Sidra), a CMA regulated Shariah compliant financial services company based in Saudi Arabia and Gatehouse Bank (Gatehouse), an FSA regulated UK-based Shariah compliant bank specialising in UK real estate, had announced and distributed the second round of net dividends distribution of 7.0% annualised for Sterling UK Real Estate Fund (SURF or Fund).
The latest dividends distribution maintains the threshold set in the first round of distribution in June of 7.0% net annualised, higher than the Fund’s targeted dividend of 6.5% per annum………………………………………..Full Article: Source

Saudi Fransi gets OK for up to $667 mln secondary sukuk issue

Posted on 14 November 2012 by Laxman  |  Email|Print

Banque Saudi Fransi, which is part-owned by Credit Agricole, will issue up to 2.5 billion riyals ($667 million) in secondary sukuk, or Islamic bonds, after shareholders approved the move, the lender said on Tuesday.
The move is aimed at shoring up its supplementary capital reserves, or Tier 2 capital. Bonds and sukuk issued to raise Tier 2 capital are usually classed as subordinated debt, meaning they would be below secured creditors in the event of any restructuring………………………………………..Full Article: Source

World’s first Basel III Tier 1 Sukuk may boost supply

Posted on 14 November 2012 by Laxman  |  Email|Print

More banks in the United Arab Emirates are likely to issue Basel III-compliant bonds after the launch of the world’s first hybrid Tier 1 Sukuk from Abu Dhabi Islamic Bank (ADIB), Fitch Ratings said.
“We expect increasing Tier 1 issuance in 2013 by UAE and other GCC banks - both conventional and Shari’ah-compliant - to support further growth. In our view, relatively high levels of capital are necessary for GCC banks due to the difficult operating environment and the concentration of single names and sectors, particularly of real estate and government-related entities, in the loan portfolios. Any pick-up in loan growth by the banks would need to be supported by additional capital………………………………………..Full Article: Source

CBB sukuk Al-Ijara oversubscribed

Posted on 14 November 2012 by Laxman  |  Email|Print

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 264%. Subscriptions worth BD52.75m were received for the BD20m issue, which carries a maturity of 182 days.
The expected return on the issue, which begins on 15 November 2012 and matures on 16 May 2013, is 1.12%………………………………………..Full Article: Source

Shrugging off a debt default, Gulf Islamic financial markets show maturity

Posted on 14 November 2012 by Laxman  |  Email|Print

Default became a dirty word in the United Arab Emirates after 2009, when Dubai World requested a six-month delay on payments on US$26 billion in debt. So much so that when UAE energy company Dana Gas this month missed repayment on a US$920 million Islamic bond, local press hesitated to label it as a default.
In the midst of the global economic and financial crisis, the country and Dubai in particular took a drubbing from credit rating agencies, investors and the international press, which harshly questioned its economic model. A multibillion-dollar bailout from oil-rich sibling Abu Dhabi averted the worst, but the experience left a sting………………………………………..Full Article: Source

IDB provides EUR1.27bln in loans for Iran wastewater projects

Posted on 14 November 2012 by Laxman  |  Email|Print

The Islamic Development Bank has allocated €1.27 billion in loans to Iran for implementing a number of wastewater projects, the Fars News Agency quoted Iranian National Water and Wastewater Company Deputy Director Hossein Bonakdari as saying on Tuesday.
The loan has been provided according to a deal for a period of three years, he said, adding that three projects are underway which have been financed by the IDB loans………………………………………..Full Article: Source

Islamic Development Bank to finance 752.5-mln-USD development projects

Posted on 14 November 2012 by Laxman  |  Email|Print

The Islamic Development Bank in Jeddah, Saudi Arabia, approved this week the financing of some development projects valued at 752.5 million U.S. dollars across the globe.
The bank will provide 250 million U.S. dollars for the second phase of the construction of a power station in Egypt, said the report. The bank will also provide 277 million U.S. dollars to assist Pakistan’s efforts to fight polio and 50 million U.S. dollars to improve the Yemeni job market for young people………………………………………..Full Article: Source

Islamic Bank allocated $25 mln to Kazakhstan farmers

Posted on 14 November 2012 by Laxman  |  Email|Print

The Islamic Development Bank (IDB) has allocated $25 million for Kazakhstan farmers, Tengrinews.kz reports citing the Development Commission of Almaty Regional Financial Center of Kazakhstan’s National Bank.
“The Fund for Financial Support to Agriculture has started a series of training seminars on Islamic financing methods for personnel of branches and representative offices in 11 regions of Kazakhstan. The training is held by Director of Badr Finance & Investment professor Adalet Dzhabiyev who developed a methodology of Islamic micro-financing for the fund under a contract with the Islamic Development Bank,” the Commission states………………………………………..Full Article: Source

IBSA to extend Islamic banking in Africa

Posted on 14 November 2012 by Laxman  |  Email|Print

The Islamic Banking Summit Africa (IBSA) was recently launched at a ceremony in the Djibouti Palace Kempinski, Djibouti, with the aim of “capturing the Africa opportunity in Islamic finance.”
Dr Suleiman Walhad, Chief Executive Officer of Dahabshiil Bank International, said: “Africa has a population climbing to some one billion people and a substantial number of the continent’s citizens are Muslims. This large population needs to be served and it is on the onus of Islamic finance institutions and industry leaders to bring Islamic financial services to the continent and its large Muslim population…”……………………………………….Full Article: Source

Alizz islamic bank’s IPO oversubscribed

Posted on 14 November 2012 by Laxman  |  Email|Print

alizz islamic bank SAOG announced that the Initial Public Offering of RO 40.8 million was successful and oversubscribed. Category 1 investors who had applied for up to 100,000 shares have been allotted 100 per cent of their application amounts.
Category 2 investors who had applied for more than 100,100 shares have been allotted 83.95 per cent of their application amounts. Category 2 investors have had their respective refunds processed on 25 October 2012. The constitutive general meeting of the bank is planned to be held on November 20, 2012.Trading of the bank’s shares on the Muscat Securities Market is expected to commence by December 3, 2012………………………………………..Full Article: Source

Saudi Arabia can play a crucial role in developing Islamic finance

Posted on 14 November 2012 by Laxman  |  Email|Print

Saudi Arabia can play a crucial role in developing Islamic finance since the largest Islamic banks are based in Gulf Cooperation Council countries, according to Ahmad Mohammed Al-Joghaiman, executive vice president and chief financial officer of Saudi Electricity Company.
Al-Joghaiman made his remarks yesterday at the first Islamic Finance News (IFN) forum. He said that with a population of around 27 million, the Kingdom’s economy is the largest in the GCC with GDP of SR 1.7 trillion at the end of 2010. He added the Saudi economy is strong despite major global economies suffering from the worst financial crisis in recent memory………………………………………..Full Article: Source

Malaysia: Islamic finance at crucial growth stage

Posted on 14 November 2012 by Laxman  |  Email|Print

The Islamic finance industry needs to redefine and establish the enabling environment to spur its next phase of growth, says Securities Commission executive director for Islamic capital market Zainal Izlan Zainal Abidin.
He said the industry is currently at a crucial stage as it moves to the next growth phase, which will be dominated by greater internationalisation. In the next phase, more product issues and service providers are expected to expand beyond their home markets, where investors will be seeking products or instruments with international exposure………………………………………..Full Article: Source

Islamic finance needs more perks

Posted on 14 November 2012 by Laxman  |  Email|Print

Islamic finance (IF) still requires incentives like tax deductions to spur the industry further, say top industry executives. CIMB Islamic Bank Bhd’s chief executive officer (CEO) Badlisyah Abdul Ghani said government started offering incentives only from around 2004/2005 to jumpstart the industry amid strong demand for IF products but few suppliers in the market.
“The demand was there but the players were not keen to do the business. So, the reason the incentives were given was to get the industry moving. As a result of that, the supply of IF instruments and products became more, and the interest from consumers grew as they now had more choice of products,” he said……………………………………….Full Article: Source

Current Shariah screening method insufficient

Posted on 14 November 2012 by Laxman  |  Email|Print

The current method used to screen companies for Shari’ah compliance has the potential to misclassify some of the biggest names in the market, according to a new report from Ratings Intelligence.
The current industry status quo is essentially to use an information-based approach, but the report found that such an approach, which has the potential to misclassify some of the biggest names in the international/regional markets, probably is insufficient to maintain the integrity and reputation of the Islamic fund management industry………………………………………..Full Article: Source

Abu Dhabi National Takaful Company posts AED 23.07 mln nine month profit

Posted on 14 November 2012 by Laxman  |  Email|Print

Abu Dhabi National Takaful Company (TAKAFUL) announced its financial results for the nine-month period ended 30 September 2012, reporting a continued growth in net profits as well as in asset value.
The Company posted a net profit of AED 23.07 million during the nine-month period of 2012, representing a growth of 10% compared to AED 21.01 million posted during the nine-month period ended 30 September 2011. Net profit for the third quarter was AED 11.32 million, compared to AED 11.42 million in Q3 2011………………………………………..Full Article: Source

Saudi Arabia struggles to employ its most-educated women

Posted on 14 November 2012 by Laxman  |  Email|Print

Unemployment among Saudi women who want to work is 34 percent — almost five times as great as the 7 percent unemployment rate for men, according to government figures. Those unemployed women are disproportionately college-educated. Of Saudis receiving unemployment benefits, 86 percent are women, and 40 percent of those women have college degrees.
In a country where more than two-thirds of the population is younger than 30, thousands more college-educated women each year try to enter the workforce, and many of them are striking out………………………………………..Full Article: Source

Islamic crowd funding portal launched in Egypt

Posted on 13 November 2012 by Laxman  |  Email|Print

A new web portal launched in Egypt says it is the first crowd funding service in the country that obeys the principles of Islamic finance. Crowd funding allows large numbers of investors to become shareholders in a project by contributing very small amounts of money, without going through a stock exchange.
“There are banks and financial institutions funding micro-projects and other large projects with more than a million dollars…but the projects that need between $50,000 and $300,000 do not find it,” said Shehab Marzban, one of the founders of shekra.com………………………………………..Full Article: Source

New study focuses on quality of Shariah equity screening

Posted on 13 November 2012 by Laxman  |  Email|Print

An indepth study, carried out by Ratings Intelligence, an organization that provides quality research resources for Islamic investors, has examined the quality of Shariah equity screening.
Authored jointly by CEO Dr. Mushtaq Shah, chairman Dr. Nabhan Al-Nabhan, and head of equity screening and audit Abdul Hadi Shaikh, the paper talks about how different results are obtained for a company under review by adopting different research approaches and how quality of Shariah screening can be improved………………………………………..Full Article: Source

RAM reaffirms ratings of KLIA’s Islamic Notes Facility

Posted on 13 November 2012 by Laxman  |  Email|Print

RAM Ratings has reaffirmed the enhanced AAA(s) rating of KL International Airport’s (KLIA) MYR 4.06 billion Bai’ Bithaman Ajil Notes Issuance Facility (2003/2015) (KLIA Notes Facility), with a stable outlook.
The enhanced rating is premised on the unconditional and irrevocable guarantee by the Government of Malaysia (GoM) to repay all amounts due under the KLIA Notes Facility………………………………………..Full Article: Source

Egypt’s NBD signs up for Islamic Euro Nostro Product

Posted on 13 November 2012 by Laxman  |  Email|Print

The product will allow NBD to earn Shari’ah-compliant profits on its account balances at Standard Chartered Bank Germany Branch in Frankfurt. NBD offers a broad spectrum of Shariah - compliant banking products and solutions for large corporate as well as individuals across all governorates of Egypt. The agreement was signed recently at SIBOS 2012, which was held in Osaka Japan.
The Standard Chartered Saadiq EUR Nostro Account utilises a Shariah-compliant account sweep facility. At the end of each business day, available EUR balance in NBD’s Saadiq clearing account will be invested using the Islamic finance mode of Murabaha. Profit generated from these transactions will be credited on a monthly basis………………………………………..Full Article: Source

Net income of Al Baraka Banking Group up by 10 pct

Posted on 13 November 2012 by Laxman  |  Email|Print

The Bahrain based leading Islamic banking group, Al Baraka Banking Group B.S.C (ABG) announced that it has achieved a net income of $183 million in the first nine months of 2012, an increase of 10 percent on the net income achieved in the first nine months of 2011.
Similarly, the financial positions statement witnessed good increases. Total assets increased by seven percent, investments and financing portfolio by 13 percent, deposits by 7 percent and total equity by 7 percent as at the end of September 2012 as compared with the end of December 2011………………………………………..Full Article: Source

IDB provides loan to Uzbekistan to upgrade oncological institutions

Posted on 13 November 2012 by Laxman  |  Email|Print

The Islamic Development Bank (IDB) has provided a loan amounting to $37.04 million to the Uzbek government for the project on modernization of oncological institutions of the country, a representative of the Minisrty Of Health said.
IDB funds granted for a period of 14 years including a four-year grace period. They will be used to purchase modern medical equipment. Total project cost - $83.2 million. The government will provide $46.18 million for its implementation, including 8.37 million - in the form of tax and other mandatory payments exemptions………………………………………..Full Article: Source

Emirates profits rebound more than double in first half

Posted on 13 November 2012 by Laxman  |  Email|Print

Despite continued global economic pressure and high fuel prices, the Group’s revenue and other operating income rose to 38.2 billion Dirhams ($ 10.4 billion) an increase of 16 per cent over the last year’s results. This constitutes the first time in the Group’s history that revenue surpassed the $ 10 billion mark in a six month period.
The Group’s cash position on 30th September 2012 remained strong at 15.2 billion Dirhams (US$ 4.1 billion), compared to 17.6 billion Dirhams (US$ 4.8 billion) as of March end 2012. The 2.4 billion Dirhams difference in the cash balance is primarily resulting from 2.0 billion Dirhams Sukuk bond repayment in June 2012………………………………………..Full Article: Source

Courses in Islamic finance needed

Posted on 13 November 2012 by Laxman  |  Email|Print

Islamic financing continued to grow in 2011 and the first half of this year to more than $ 60 billion. The forecast for this year on the Sukuk is around $ 120 billion, creating a new record.
“I would like to encourage every private as well public sector to think seriously about using the Sukuk as a source of fund,” Abdulmohsen A. Al-Fares, managing director and chief executive officer of Saudi Arabia-based Alinma Bank said. “And we are seeing many issuance over the last three years. This will continue and will see more that will help the secondary market to develop so that the government issuance of Sukuk will set as a benchmark which is very important for secondary market development. This will be strong source of funding not only in Islamic world but also globally.”……………………………………….Full Article: Source

Ethica launches 700 page Islamic finance e-book for professionals

Posted on 13 November 2012 by Laxman  |  Email|Print

The Islamic finance industry’s leading certification institute, Ethica, today launched what may soon become the desktop reference of choice for the Islamic finance professional: a 700 page e-book packed with practical, usable information. Everything from sample Islamic finance contracts, over 1,000+ scholar-approved Q&As, the entire “Meezan Bank Guide to Islamic Banking,” study notes to Ethica’s award-winning Certified Islamic Finance Executive (CIFE) program, and much more. All organized with an easy-to-use subject index at the end.
Ethica is the first globally-recognized certification institute in Islamic finance to launch a comprehensive online guidebook for the industry. Ethica’s spokesperson said, “We wanted to create a handbook that empowers professionals with a usable, practical reference that goes beyond standard academic theory.” (Press Release)

Takaful Malaysia aims to end 2012 financial year with 1,000-strong agencies

Posted on 13 November 2012 by Laxman  |  Email|Print

Syarikat Takaful Malaysia Bhd (Takaful Malaysia) aims to end the financial year 2012 with 1,000-strong agency force.The Islamic insurance company in Malaysia, with 900 active agents, launched the “Be myAgent” campaign to share with the public the career and business opportunities that Takaful Malaysia has to offer.
The company would also offer a financing scheme to selected and qualified new agents or agency leaders to help them get a headstart in their career with Takaful Malaysia, it said in a statement………………………………………..Full Article: Source

ADIB confirms success of world’s first hybrid perpetual tier 1 Sukuk

Posted on 12 November 2012 by Laxman  |  Email|Print

Abu Dhabi Islamic Bank (ADIB) has successfully issued the world’s first Shari’ah- compliant hybrid tier 1 Sukuk and the region’s first publically issued perpetual and tier 1 instrument. This strategic transaction marks a key milestone for the global Islamic finance industry and a major and rare innovation by an Islamic bank.
The $1 billion perpetual non-call six-year issue was priced at an expected profit rate of 6.375 per cent, one of the lowest rates achieved for any perpetual instrument by a global bank………………………………………..Full Article: Source

Bahrain’s GIB picks banks for dollar bond

Posted on 12 November 2012 by Laxman  |  Email|Print

Gulf International Bank, majority owned by the Saudi Arabian government, has mandated banks to arrange a dollar-denominated bond, planned before the end of the month, four sources familiar with the matter said on Sunday.
Bahrain-based GIB picked itself, as well as JP Morgan Chase Inc, National Bank of Abu Dhabi, Barclays Plc, Standard Chartered Plc and Societe Generale to arrange the deal, the sources said, requesting anonymity………………………………………..Full Article: Source

Tilal seeks CMA approval for Oman’s first Sukuk

Posted on 12 November 2012 by Laxman  |  Email|Print

Tilal Development Company, an Oman-based real estate firm, has reportedly approached the Sultanate’s Capital Market Authority (CMA) to raise funds by issuing the country’s first Sukuk.
“The company officials have unofficially approached us. We have no problem in granting them an approval to raise money by way of a Sukuk issue, once they are ready with the plan. They are yet to submit a formal application for the issue, CMA executive president Abdullah bin Salem Al Salmi said………………………………………..Full Article: Source

NBAD turns to Malaysia for LT2

Posted on 12 November 2012 by Laxman  |  Email|Print

National Bank of Abu Dhabi is looking to take advantage of Asian appetite for yield with a rare subordinated sukuk in the Malaysian ringgit market. This comes with less than two months to go before Basel III standards render traditional Lower Tier 2 bonds obsolete.
The United Arab Emirates bank has been working on a potential ringgit-denominated sub bond for the last few weeks. If it comes to market, it will be the first Tier 2 sukuk from a foreign issuer in Malaysia………………………………………..Full Article: Source

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