Posted on 06 April 2011 by Laxman | Email|Print
Modern Islamic banking is just 35 years old, increasing from US$10 million in 1975 to now over US$250 billion under management with dedicated Islamic banks, together with another US$200 billion with units of conventional financial institutions.
This rapid expansion in just three decades has not only attracted the interest of conventional bankers and borrowers, but also increasingly of investment fund structurers and promoters. Western financial institutions are working closely with their Islamic counterparts to develop this sector and meet the needs of a huge customer base worldwide……………………………………..Full Article: Source
Posted on 06 April 2011 by Laxman | Email|Print
Telekom Malaysia Bhd (TM) has received Securities Commission’s approval to establish Islamic commercial papers (ICP) and Islamic medium-term notes (IMTN) programmes with a combined limit of up to RM2bil.
TM said in a filing with Bursa Malaysia yesterday that the proposed programmes, with tenures of seven and 15 years respectively, have been assigned ratings of P1 and AAA respectively by RAM Rating Services Bhd……………………………………..Full Article: Source
Posted on 06 April 2011 by Laxman | Email|Print
A critical factor that will determine the success in taking the takaful industry to the next level of development is the existence of players with the right quality and calibre. Besides that, Bank Negara deputy governor Datuk Mohd Razif Abd Kadir said players readiness in terms of capacity and capability to formulate and execute successful strategies in response to new market opportunities were also paramount.
“Responsiveness to consumer needs is a crucial test that defines success. The takaful industry in Malaysia has never been about syariah conformity being its only value proposition……………………………………..Full Article: Source
Posted on 06 April 2011 by Laxman | Email|Print
A Malaysia-based group is drafting halal standards to give Muslim countries a framework to regulate a $2 trillion global industry ranging from food to finance.
The global halal industry is regarded as a vast but difficult market with the substantial Muslim population outweighed by the use of disparate sharia standards, differing levels of development across Muslim countries and a lack of regulatory infrastructure……………………………………..Full Article: Source
Posted on 06 April 2011 by Laxman | Email|Print
The Islamic financial sector in Indonesia is hoping a mix of state-backed infrastructure projects and regulatory reforms will help the country’s sharia-compliant lenders to continue their rapid expansion, allowing the industry to realise its full potential and to come out of the shadows of other regional banking powers.
Indonesia was a relative late-comer to the Islamic finance sector, only ratifying legislation to clear the way for sharia-compliant services a quarter of a century after Malaysia had opened the door to Islamic banking and associated activities……………………………………..Full Article: Source
Posted on 06 April 2011 by Laxman | Email|Print
Dubai’s borrowing costs relative to Malaysia’s sank to a record as the emirate makes progress restructuring debts. The extra yield investors demand to own Dubai’s 6.396 percent dollar bond rather than Malaysia’s 3.928 percent sukuk dropped to 251 basis points yesterday, the lowest ever, according to data compiled by Bloomberg.
It was little changed today at 253 basis points. The gap has narrowed 55 basis points since the day before state-owned Dubai World signed an accord with creditors to alter terms on about $25 billion of debt on March 23……………………………………..Full Article: Source
Posted on 06 April 2011 by Laxman | Email|Print
Indonesia’s finance ministry plans to sell 1 trillion rupiah ($115 million) of Islamic bonds or sukuk in an auction on April 12, the debt office said in a statement on Tuesday……………………………………..Full Article: Source
Posted on 06 April 2011 by Laxman | Email|Print
One of the most troubling episodes faced by Kuwait’s Islamic finance industry could at last be on the way to being resolved. The Investment Dar, a Shariah-compliant finance company, defaulted on a $100 million sukuk in April 2009 and has been trying to come up with a restructuring plan for its debts of more than KD1 billion ($3.6 billion) ever since.
A vote by creditors was due before the end of March on the latest plan, which would involve their injecting a further KD20 million into the business over the next year. In return, they would gain an additional 10% stake and their debts would be repaid over the following six years……………………………………..Full Article: Source
Posted on 06 April 2011 by Laxman | Email|Print
Liquidity Management House (LMH), serving as structuring advisor on behalf of six Kuwait banking institutions, has successfully completed a KWD 92 million ($331.6 million) debt restructuring of First Investment Company (FIC).
Al Tamimi & Company’s Kuwait office served as lead counsel on behalf of the creditors. The deal, between FIC and its creditors, which was made on 20 February 2011, was a unique Sukuk Al Wakala transaction for the purpose of restructuring the debt of FIC……………………………………..Full Article: Source
Posted on 06 April 2011 by Laxman | Email|Print
Global development banks said on Tuesday they were looking to raise up to $1 billion to leverage more funding for rail, road, electricity and other infrastructure projects in Arab countries under pressure to deliver better services to their people.
In a joint statement, the World Bank and Islamic Development Bank said they would mobilize support for a new Arab Financing Facility for Infrastructure to bolster economic growth and meet the needs of the region’s growing population……………………………………..Full Article: Source
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