Will 2012 be the year of “come together” consolidation for Islamic banks? Size is often the justification for achieving economies of scale, used to access deals for league table prominence, used as a buffer in a challenging environment, used as defensive measure to ward off unwanted suitors, and so on.
Islamic banks are very much like Islamic (equity) funds. There are hundreds of Islamic banks and funds, but the paid-up capital and assets under management, respectively, is too small to be meaningful. Yet, both, more so Islamic banks, present a unique situation (of an industry risk) of “too small to fail”………………………………………..Full Article: Source

Former Minister of Finance and Secretary to the Government of the Federation, Chief Olu Falae, has said the term ‘Islamic banking’, negates the secularity of Nigeria. He said, “Both the Bible and the Quran forbid usury. So, if there is a banking system which forbids such a thing, why give it a religious name? Why not something neutral?
“These issues have to be resolved considering the present state of the country. This time is critical because of religious crises and Boko Haram violence. Bringing up a banking system called Islamic banking is bound to be viewed within suspicious.”……………………………………….Full Article: Source

Cagamas Berhad (Cagamas), the National Mortgage Corporation, announced the issuance of 1 to 15 years Cagamas Conventional Medium Term Notes (CMTN) and Cagamas Islamic Medium Term Notes (IMTN) amounting to RM60 million and RM40 million respectively.
The Cagamas CMTN and IMTN which will be redeemed at their full nominal value on maturity, are unsecured obligations of the Company, ranking pari passu among themselves and with all other existing unsecured obligations of the Company. They will be listed and tradable under the Scripless Securities Trading System. (Press Release)

Indonesia’s elevation to investment grade may propel the country’s sukuk to outperform Malaysian bonds in 2012 after trailing the debt this year. Fitch Ratings, which raised Indonesia to BBB- last week, rates Malaysia three levels higher at A-.
Yields on Indonesia’s 8.8 per cent dollar-denominated Islamic securities due April 2014 were at 3.30 per cent, compared with 2.62 per cent for Malaysia’s 3.928 per cent global syariah-compliant notes due in 2015, according to prices from Royal Bank of Scotland Group plc………………………………………..Full Article: Source

Malaysia’s Emery Oleochemicals Group, a producer of plastic additives, delayed a plan to sell RM480 million (US$151 million) of Islamic bonds to the second quarter of next year because it has sufficient funds.
The company has “strengthened its financial resources” and is pushing back the bond sale to a time when “additional funds are required for its various long-term growth projects,” Emery said……………………………………….Full Article: Source

Dubai Islamic Bank, National Bank of Abu Dhabi and Standard Chartered Bank make up the three banks that have subscribed a combination of Islamic and conventional financing: according to an Emaar spokesman Dh2.8 billion of the facility is Islamic, and the remaining Dh800 million is conventional.
As Emaar slowly but surely begins to near the end of its debt restructuring, Kipp can’t help but think that if 2010 was the year in which massive debt revelations were made public—2011 is the year of debt restructuring. In this article we outline just some of the major highlights in the debt-laden landscape of the UAE………………………………………..Full Article: Source

National Bank of Oman (NBO) is intending to launch Islamic banking operations in Oman. Islamic Banking has been named as a key area for development at NBO, which plans to capitalise on the opportunities presented by the innovative industry and meeting the increasing demand for Shari’ah-compliant finance.
Mohammed al Ardhi, NBO’s Deputy Chairman, confirmed that there is, indeed, a need for this diversification and that there is huge potential in the area of Islamic Finance. NBO plans to contribute significantly to the industry by providing banking services to ‘customers who request Shari’ah-compatible products’, after obtaining approval from CBO………………………………………..Full Article: Source

Qatar First Investment Bank (QFIB), Qatar’s independent Shariah compliant investment bank, has won the accolade of “Best Investment Bank in the GCC for 2011” among 11 regional players in this category at this year’s Islamic Business & Finance Awards organised by CPI Financial.
Bringing together over 250 regional and global industry professionals, the annual Islamic Business & Finance Awards event was held at the Emirates Towers Hotel in Dubai. The gala ceremony celebrated achievement among top Islamic bankers, financiers and Islamic banking and finance institutions……………………………………….Full Article: Source

Yaseen Anwar, the governor of the State Bank of Pakistan, delivered the keynote address at the Oman Islamic Economic Forum in Muscat on December 17–18.
Anwar said “tremors” were still being felt from the financial crisis, which was the worst of its kind. “Debates on reasons for the financial crisis have led to a wider belief of having greater accountability and a proactive role of regulators to ensure stability of the financial system,” he said………………………………………..Full Article: Source

RAM Ratings has reaffirmed the respective AA3 and P1 ratings of Gamuda Berhad’s proposed 25-year MYR 800 million ($250.7 million) Islamic Medium-Term Notes Programme and seven-year MYR 100 million ($31.3 million) Islamic Commercial Papers Programme.
The agency also reaffimed the ratings on the company’s existing MYR 800 million Islamic Medium-Term Notes Programme (2008/2028) and MYR 100 million Commercial Papers Programme (2008/2015). Both long-term ratings have a stable outlook. Each of the combined facilities will be capped at MYR 800 million at all times………………………………………..Full Article: Source

Malaysian entrepreneurs have to think out of the box to tap into the lucrative RM9 trillion-a-year halal products market. Halal Industry Development Corporation (HDC) vice-president Dr Malik Musharaf said Malaysia was only tapping into less than one per cent of the market, taking in about RM58 billion of the share.
“The global halal eco-system is worth more than US$2.3 trillion (RM9 trillion) annually and is fast gaining attention worldwide.”……………………………………….Full Article: Source