Reserve Bank Governor D Subbarao has ruled out introduction of Islamic banking in the country but said other methods for channelising funds based on the principles of Islamic law can be looked at. “Islamic banking is not possible”, he said, adding the central bank could look at other vehicles based on Islamic banking principles to channelise NRI funds.
Replying to a question on the issue, Subbarao said: “There are some legal problems. We have studied the issue. We appreciate the objectives behind the request. But there are some legal problems. It can be got around not through banking, but other vehicles”. He said that introduction of such banking was not possible in absence of a separate law for Islamic banking………………………………………..Full Article: Source

Growth in the Islamic bond market, or sukuk, has been inching higher in the region. Sukuk issued in Asia accounts for about 40 percent or US$17 billion out of the total global issuance of US$43 billion this year.
Such Islamic bonds are popular with investors from the Middle East and has opened up new opportunities for Asian companies. Singapore-listed Noble Group is the latest to consider Islamic bonds for its financing needs. The commodities trading firm has announced that it will issue some 300 million Malaysian ringgit (US$98 million) of two-year Islamic bonds at 4.22 per cent per annum profit rate………………………………………..Full Article: Source

A $1 billion sukuk issue by Abu Dhabi Islamic Bank (ADIB) this month may start a trend that was probably not contemplated by the founders of modern Islamic finance: Islamic bonds may become a key tool for banks to meet tightening capital rules.
The trend could add further momentum to a global boom in sukuk issuance. It could also ease pressure on banks which find it hard to raise capital from equity issues as global financial instability depresses stock markets………………………………………..Full Article: Source

International legal practice Norton Rose has advised the Republic of Indonesia for a second time on another large scale international Sukuk issuance. The firm advised the Republic of Indonesia on the establishment of a $3 billion Sukuk issuance programme and the initial issuance of $1 billion of Sukuk under the programme.
The issuance, which closed on November 21, 2012, has a maturity of ten years, with periodic distributions of 3.3 per cent per annum. The issuance was governed by English laws and was offered under Rule 144A and Regulation S of the US Securities Act to a broad range of investors based inside and outside the US………………………………………..Full Article: Source

Dana Gas PJSC (DANA) plans to pay bondholders about $100 million in cash as part of the $920 million debt restructuring accord the United Arab Emirates company agreed this month, a person familiar with the deal said.
The cash would be paid to holders of the Shariah-compliant notes, or sukuk, once a lockup agreement between Dana Gas and its creditors is signed, likely later this month, according to the person, who asked not to be identified because the information is private………………………………………..Full Article: Source

Latham & Watkins advised Abu Dhabi Islamic Bank PJSC, one of the leading Islamic banks in the Middle East, in connection with the region’s first perpetual and Basel III compliant tier 1 sukuk issuance.
The initial benchmark size for the issuance of US$500 million was more than 30 times oversubscribed, with an order book of US$15.5 billion, and the expected profit rate of 6.375% is the lowest ever coupon for an instrument of this type. The transaction has allowed Abu Dhabi Islamic Bank PJSC to strengthen and diversify its capital base in line with international best practice in capital management………………………………………..Full Article: Source

The Central Bank of Bahrain (CBB) announces that the monthly issue of the Sukuk Al-Salam Islamic securities for the BD18m issue, which carries a maturity of 91 days, has been oversubscribed by 278%.
The expected return on the issue, which begins on 28 November 2012 and matures on 27 February 2013, is 1.00%. The securities are issued by the CBB on behalf of the Government of the Kingdom of Bahrain………………………………………..Full Article: Source

Gulf firms and state-backed investors, flush with petrodollars and facing limited growth options at home, are stepping into emerging markets in Africa and Asia to get a foothold in key sectors such as banking and telecommunications.
Investors from the Gulf have for years put their oil wealth into developed markets in the United States, Europe and Japan. The consistent focus on less developed countries is new, and may have big implications for the economies receiving the money………………………………………..Full Article: Source

Thriving with a staggering pace of over 20 percent year on year, the global Islamic finance industry now touts a vibrant size of 1.35 trillion dollars. Islamic banking industry (IBI), having a network of 430 banks and financial institutions and around 191 conventional banks conducting Islamic banking window operations, records its footprints in more than 75 countries across the globe.
With its concentration in GCC countries, followed by non-GCC, MENA, Asia and Sub-Saharan Africa, S&P anticipates global IBI to grow by 20 percent YoY between CY13-CY15, consequently surpassing of two trillion dollars by CY15………………………………………..Full Article: Source

Oman’s Al Izz Islamic Bank, the sultanate’s second Islamic bank, has elected members of its board a month after the initial public offer of its shares, a bank statement said on Thursday.
Taimur Bin As’ad Al Said was elected chairman to lead a six-member board. Last month, Al Izz raised 40 million rials ($104 million) by selling 40 percent of its capital through a month-long IPO. The bank, which counts Abu Dhabi state-fund Aabar Investments as a founding shareholder, will list on the Muscat Securities Market on Dec. 3………………………………………..Full Article: Source

RHB Capital Bhd recorded a 14.37% gain in net profit to RM487.48mil in the third quarter ended Sept 30, 2012 (Q3′12) compared with RM426.22mil in the corresponding period a year ago.
The rise in net profit was attributed to higher net interest income, other operating income and income from Islamic banking business, as well as lower allowance for impairment on loans and financing. RHB’s Islamic banking business reported a lower profit by 1.3% to RM77.3mil caused by higher allowances for impairment on financing and higher overhead costs. This was partially offset by higher trading income, fee income and net interest income………………………………………..Full Article: Source

QInvest has appointed Tamim Hamad al-Kawari as its new CEO following the resignation of Shahzad Shahbaz from the position of the company’s chief executive officer. However, Shahbaz will remain with the firm for some time to facilitate a smooth transition.
Al-Kawari previously served as QInvest’s Deputy CEO. Prior to joining QInvest, al-Kawari was Goldman Sachs managing director and country head (Qatar). Under Shahbaz’s leadership, the bank expanded its global footprint from the United Kingdom to India with strategic investments in Panmure Gordon and Ambit Holdings………………………………………..Full Article: Source

Deputy Prime Minister Tan Sri Muhyiddin Yassin has urged country members of the D-8 group of Islamic developing nations to explore the full potential of Islamic banking and finance.
He said as Muslim countries, members of the D-8 can provide the best example to the world that there is an alternative system to the already-proven flawed and vulnerable conventional financial system………………………………………..Full Article: Source

Stressing the need for continued collaboration amongst the D-8 central banks, Governor State Bank of Pakistan (SBP) Yaseen Anwar Wednesday said the member countries need to explore ways to promote Islamic financing in the wake of challenging global economic landscape.
While opening and chairing the 2nd meeting of central bank governors of the D-8 countries in Islamabad, Anwar said there was aneed for exploring sustainable models to promote Islamic finance in the Developing-8 (D-8) economies………………………………………..Full Article: Source

The Jeddah-based Indian Forum for Interest-Free Banking is to meet Prime Minister Manmohan Singh, seeking changes in laws so as to allow functioning of Islamic banks and financial institutions in the country.
Forum secretary V.K. Abdul Aziz said here that with the country seeking funds for major infrastructure projects, Islamic Finance had the potential to meet the needs of the sector. When the State looks at massive investments for major infrastructure projects in ports, airports and high-speed rail corridor, he said Shariah-compliant funds would prove beneficial………………………………………..Full Article: Source

Saudi Arabia is studying draft regulations that could see the creation of a real estate refinancing company similar to U.S. firm Fannie Mae, according to proposals published by the central bank this week.
The regulations are part of long-awaited government efforts to develop a housing mortgage sector in the conservative kingdom where the restrictions of Islamic sharia law have made it difficult to secure lending against property. The world’s top oil exporter faces a housing shortage, particularly among lower and middle-income people, as land prices rise rapidly. In July, the government passed laws to regulate mortgage and lease lending………………………………………..Full Article: Source