Loss-making Malaysia Airlines on Tuesday said it planned to raise up to 2.5 billion ringgit ($800 million) in Islamic bonds as part of an ambitious plan to escape financial difficulties.
In February the flag carrier said it lost 2.52 billion ringgit last year largely due to soaring fuel costs, admitting it was “in crisis”. The new funding plan comes after budget carrier AirAsia and Malaysia Airlines scraped their controversial share swap deal early this month………………………………………..Full Article: Source

Malaysia Airlines (MAS) has proposed to launch a Sukuk programme of up to RM2.5 billion to shore up its capital base, with the proposal currently pending regulatory approval.
The Sukuk programme is part of the airline’s funding plan which consists of three main pillars, with the first being to address its working capital requirements………………………………………..Full Article: Source

Dubai Islamic Bank priced a five-year, $500 million Islamic bond, or sukuk, on Tuesday, the first time the bank has tapped debt capital markets since 2007. The deal priced at par with a profit rate of 4.752 percent at a spread of 365 basis points over midswaps, arranging banks said.
The spread was 10 basis points tighter than initial price guidance released the previous day, indicating good demand for the issue………………………………………..Full Article: Source

Dubai Islamic Bank has launched a $500 million (Dh1.8 billion), five-year sukuk sale after receiving good demand, a banker aware of the transaction said. The launch spread of 365 basis points over mid swaps is tighter than the initial guidance, the banker, who declined to be identified, told Zawya Dow Jones.
Deutsche Bank, DIB, Emirates NBD, HSBC and National Bank of Abu Dhabi are helping arrange the Regulation S transaction, after DIB met fixed-income investors in Asia, Middle East and Europe over the past few days. Fitch Ratings last week said it has assigned DIB’s $2.5 billion trust certificate issuance program a ‘A ‘expected rating………………………………………..Full Article: Source

Saudi Arabia’s banks may follow Banque Saudi Fransi and sell bonds denominated in dollars to better meet the long-term funding needs of infrastructure and industrial projects in the biggest Arab economy.
The world’s top oil exporter is executing more than $500 billion of projects to reduce its reliance on crude exports, modernise the country and create jobs. Some of this project financing needs to take place in dollars as companies seek to import equipment for power plants and refineries………………………………………..Full Article: Source

Despite the idea of platforms to resolve Islamic finance disputes gaining popularity, introducing the schemes could involve hidden risks that few have considered.
“This potential platform would work for day to day retail banking products such as shariah-compliant home or personal finance,” said Debashis Dey of Clifford Chance in Dubai. “But it might run into investor resistance if applied to bigger ticket transactions with global participants.”……………………………………….Full Article: Source

There is a need to further complement the Islamic Financial Planning and Wealth Management (IFPWM) sectors for Malaysia to become a global hub for Islamic finance.
The Islamic Banking and Finance Institute Malaysia (IBFIM) Chief Executive Officer Datuk Dr Adnan Alias said towards achieving this target, the sectors needed a solid career development framework……………………………………….Full Article: Source

Islamic banking only makes up one per cent of mainstream finance, but it takes up more than its fair share of newspaper column inches. Perhaps this shouldn’t be surprising since the industry has considerable growth potential: high oil prices and a post-Arab Spring resurgence of political Islam in North Africa will help swell balance sheets, and Islamic banks in the UK report increasing interest from non-Muslims in their services too.
But more importantly, at a time when the weaknesses of mainstream finance have never been more exposed, Islamic finance offers a thoughtful alternative. Islamic prohibitions on the charging of interest are not coincidental — both Christian and Jewish scriptures contain similar provisions — and the emphasis instead on profit-sharing structures is intended to offer a fairer system………………………………………..Full Article: Source

The Islamic Development Bank and the Asian Development Bank agreed to a $133 million financing plan to develop two wind projects in Pakistan as the nation seeks new renewable sources to overcome power shortages.
Pakistan’s Fauji Foundation, set up as a charitable trust for former servicemen, and the nation’s Tapal Group are backing the projects totaling 100 megawatts, according to a statement on the Islamic Development Bank website………………………………………..Full Article: Source

National Bank of Oman (NBO), the first local bank in the country, said that it is well prepared to launch its Sharia-compliant window and will have a presence across all regions in the Sultanate within a year once all regulatory approvals are in place.
The bank is ready to roll out its Sharia-compliant products at its first branch in Al Azaiba and has well qualified staff and systems in place to offer a broad spectrum of these products and services to all its customers, said a press release………………………………………..Full Article: Source

Islamic banking differs significantly from conventional banking approaches not solely by its nature, but also by way of the challenges it faces due to the complexity of its sophisticated nature, in the form of operational risks, according to Basel II “Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and system or from external events”.
According to the Islamic Financial Services Board (IFSB), in Islamic banks, operational risk is associated with the loss resulting from ‘inadequate, or failed internal processes, people, and system, or from external events, including, losses resulting from Shari’ah noncompliance, and the failure in fiduciary, responsibilities………………………………………..Full Article: Source

Emirates NBD, the leading financial services Group in the region, announced the appointment of Mohammad Kamran Wajid as new CEO of Emirates NBD Capital Limited (Emirates NBD ’s DIFC based investment banking subsidiary regulated by DFSA) and Emirates Financial Services. The appointment is subject to regulatory approvals.
In his new role, Kamran will drive the transformation of Emirates NBD Group’s Investment Banking business into a global Investment Banking platform, offering a comprehensive suite of market leading products and services (with a special focus on Equity Capital Markets, Debt Capital Markets, Corporate / Financial Advisory and Mergers & Acquisitions advisory) to cater to the diverse needs of clients from across the globe. (Press Release)