The Republic of Indonesia has mandated Deutsche Bank, HSBC and Standard Chartered for a new global Islamic bond, or sukuk, issue, the acting head of the country’s debt office confirmed on Thursday.
The official, Robert Pakpahan, was responding after two banking sources told Reuters the three banks had been chosen and that the sale would go ahead before the end of the year………………………………………..Full Article: Source

A statement from the Undersecretariat of the Treasury in Turkey said, “Citigroup, HSBC and Liquidity House (a Kuwait Finance House subsidiary) have been mandated to explore opportunities for a possible Lease Certificate issuance in the international capital markets.”
A series of road shows for the Sukuk is being organised in financial centres across the Middle East and Asia for 10-13 September. Market talk suggests that the Sukuk will be dollar-denominated and issued in the week of 17 September………………………………………..Full Article: Source

Standard & Poor’s Ratings Services said today that it has assigned its ‘BB’ issue credit ratings to the proposed U.S. dollar Sukuk Lease Certificates to be issued by Hazine Mustesarligi Varlik Kiralama Anonim Sirketi (the issuer), a special-purpose vehicle (SPV) wholly owned by the Republic of Turkey (foreign currency, BB/Stable/B).
We believe the transaction aims to raise funds in accordance with the Islamic principles of “ijara” (leasing). The assets underlying the lease will be state-owned buildings and land in Turkey. Under the transaction, the state will sell a pool of property assets to the issuer………………………………………..Full Article: Source

Kuwait Financial Centre (Markaz), in its recent research report titled GCC Bonds & Sukuk Market Survey, has highlighted the trends pertaining to aggregate issuances in the GCC region during H1, 2012.
The aggregate primary issuance of bonds and sukuk in the GCC totaled $ 37.6 billion in H1, 2012, an 18.7 percent decrease from the total amount raised in during H1, 2011………………………………………..Full Article: Source

Moody’s upgraded yesterday its outlook for Turkey’s sukuk issue to positive and gave it a “Ba1” rating on the heels of news that the Turkish Treasury had mandated three international banks – Citigroup, HSBC and Liquidity House – to issue “sukuk certificates,” or Islamic banking vehicles.
The new issue is expected to be completed in two weeks as Turkish banks are eagerly waiting for the Turkish Treasury to finalize the process for a Turkish Lira-based sukuk issuing regulation. Deputy Prime Minister Ali Babacan had previously said on several occasions that the Treasury was working to shape the regulation before the end of 2012………………………………………..Full Article: Source

RAM Ratings has downgraded its outlook on Malakoff Corporation Bhd’s 5.6 billion ringgit and 600 million ringgit Islamic bond programmes to negative from stable, citing the company’s dwindling cash levels and highly leveraged balance sheet.
The two programmes were initiated in 2007 to delist Malakoff from the local bourse. Malakoff has indicated plans to return with an initial public offering (IPO) next year, an effort which could go towards addressing the company’s debt. It had consolidated borrowings of 10.5 billion ringgit ($3.37 billion) at end 2011, according to RAM………………………………………..Full Article: Source

RAM Ratings has assigned an AAA long-term rating to the senior notes under HSBC Amanah Malaysia’s proposed Multi-Currency Sukuk Programme of up to MYR 3 billion.
Concurrently, RAM has reaffirmed the bank’s respective long- and short-term financial institution ratings, at AAA and P1. Both long-term ratings have a stable outlook. HSBC Amanah is the Islamic banking arm of HSBC Bank Malaysia (HSBC Malaysia) and has an established domestic franchise under the Amanah brand………………………………………..Full Article: Source

The total value of bonds and Sukuk issued in the Gulf Cooperation Council (GCC) was $37.6 billion during the first half of 2012 (H1 2012), a decrease of 18.7 per cent, compared to the respective period of 2011, reports Kuwait Financial Centre (Markaz).
The month of May witnessed the highest value of issuance during H1 2012 with $7.3 billion, representing 19.6 per cent of the total amount issued through 28 issuances, however, June predominated in terms of issuance frequency with 32 issuances………………………………………..Full Article: Source

Jordan-based private equity firm Foursan Group has acquired a 6.6 percent stake in Jordan Dubai Islamic Bank, making it the bank’s second largest stakeholder, Foursan said on Thursday.
The firm declined to disclose the monetary value of the deal. It is not yet considering seeking a seat on the bank’s board because the term of the current board has yet to expire, Foursan’s vice-president Jameel Anz told Reuters………………………………………..Full Article: Source

Indonesian consumer-finance companies are turning to Shariah-compliant lending after regulators tightened rules on non-Islamic loans for buying cars and motorcycles.
PT Adira Dinamika Multi Finance, the nation’s largest, started a business complying with the Muslim faith in July and expects it to eventually account for as much as 20 percent of operations, Sylvanus Gani Mendrofa, head of the corporate secretary division, said in an Aug. 28 interview in Jakarta………………………………………..Full Article: Source

Islamic banks are hoping to see more incentives like tax breaks being offered by the government under Budget 2013 to spur the industry further. Datuk Mohd Redza Shah Abdul Wahid, president of the Association of Islamic Banking Institution Malaysia (AIBIM), said a wish-list had been submitted to the government about two months ago.
“We would like to see continued incentives given to certain transactions pertaining to Islamic banking, such that the cost is always the same as conventional banking………………………………………..Full Article: Source

The local Islamic banking industry which stands to benefit from increasing GDP growth, exceeding 8% in 2011, is poised to attract more investment flows from Middle East and Far Eastern countries.
“The customer base of Islamic banking has gradually increased and the industry has managed to attract sufficient interest from the domestic market, both Muslim and non Muslim. The current non Muslim consumer market in Sri Lanka, comprises more than 20% of its total Islamic banking market shares, which figures are expected to increase due to education and awareness of Islamic banking products’ increase in the country,” Amana Bank CEO and Managing Director Faizal Salieh said………………………………………..Full Article: Source

Conglomerate DRB-HICOM Bhd has no intention of divesting its entire 70 per cent stake in Bank Muamalat Malaysia Bhd as it still wants to be involved in the financial services industry, sources said.
The group, which has other businesses such as automotive, energy and ports, will only pare its stake to a level that is acceptable by Bank Negara Malaysia (BNM). The central bank in 2008 allowed DRB-HICOM to buy the 70 per cent stake in Bank Muamalat on condition that it would eventually sell it down to 40 per cent. ……………………………………….Full Article: Source

Malaysian Building Society Berhad (MBSB) posted strong growth with a pre-tax profit of RM233 million, an increase of 18 per cent or RM36 million from RM197 million for the same period last year. The improved financial results were mainly due to the increase in net income from Islamic banking operations especially in the retail segment.
“The growth in revenue from the retail segment is mostly attributed to the good response from customers towards MBSB’s personal-financing-i “transfer package” launched early this year and extended into the second quarter which enabled customers to refinance their borrowings with our lower costs of personal financing-i and at a 100 percent disbursement payout,” said Datuk Ahmad Zaini Othman, MBSB’s President and Chief Executive Officer recently………………………………………..Full Article: Source

Ironically, the global financial crisis has triggered conservative investing through non-conventional means: non-Muslims are increasingly choosing to invest through Islamic institutions’ portfolios.
The irony is particularly striking in the US, since Islamic financing often times carries the misnomer of “terrorist-financing”. However, for those looking to pursue more ethical investments, and with the rise of socially responsible investment culture, Islamic financial institutions create a new investing culture–specifically through Islamically-managed hedge-funds………………………………………..Full Article: Source

Islamic Finance is one of the quickest growing segments of the financial-services industry. Walid Hejazi, professor of International Competitiveness at Rotman, and academic director and developer of the course, says the class introduces new business perspectives to students. “It’s a tremendously misunderstood approach in Canada that has nothing to do with religion,” he says.
“Islamic finance, like conventional finance, is simply an approach to solving the economic problems we currently have. The course appeals to a wide spectrum of students, and my classroom is diverse,” says Hejazi………………………………………..Full Article: Source