Posted on 14 December 2012 by Laxman | Email|Print
CIMB (CIMB) Group Holdings Bhd. plans to take advantage of its purchase of Royal Bank of Scotland Group Plc’s Asian operations to regain its position as the world’s top sukuk arranger after slipping to second place in 2012.
The Malaysian bank is in talks with companies in India and China to sell ringgit-denominated sukuk as they seek to skirt a lack of Shariah rules in their own nations, Badlisyah Abdul Ghani, chief executive officer of the Kuala Lumpur-based Islamic unit, said in a Dec. 11 interview. The lender managed 13 percent of the record $45 billion in global issuance this year, trailing the 25 percent of nearest rival HSBC Holdings Plc………………………………………..Full Article: Source
Posted on 14 December 2012 by Laxman | Email|Print
UEM Land Bhd, Malaysia’s biggest property company by market value, started marketing RM600mil sukuk, its first issuance of syariah-compliant Islamic bonds, two people familiar with the sale said.
The company was seeking to price the five-year sukuk to yield 4.25% to 4.4%, said the people who asked not to be named as the information is private. That’s as much as 114 basis points above similar-maturity non-Islamic government debt, according to Bank Negara Malaysia index………………………………………..Full Article: Source
Posted on 14 December 2012 by Laxman | Email|Print
Despite the growth of the Sukuk market, more creativity around asset classes in terms of soft ware and intellectual property rights is needed to encourage the introduction of Sukuk instruments as a viable option in western and emerging markets. To many Islamic finance practitioners, the growth in the size of the Sukuk market has not necessarily been accompanied by a deeper level of geographical or asset class diversification.
The over-reliance on real estate assets or, for that matter, governmental or quasi-governmental credit enhancements is as prevalent today as it was during the pre-credit crunch era. This phenomenon can be attributed to a number of factors some of which are driven by the dearth of Islamic finance human resources at top investment banks, investment companies and multinational corporations………………………………………..Full Article: Source
Posted on 14 December 2012 by Laxman | Email|Print
FWU AG Group (FWU), a Munich-based financial services company, recently issued a US$55,000,000 Sukuk - the first ever Sukukissuance by a German corporate and the largest ever Sukuk from a European Corporate. This is also the first Sukuk to utilize a computer software programme and intellectual property rights under an Ijara structure.
FWU, which primarily offers global Takaful (Islamic insurance) solutions through strategic cooperation and distribution arrangements in Europe, the Middle East and Malaysia, entered into the transaction through the Dubai branch of its subsidiary FWU Dubai Services GmbH. The ultimate financiers were GCC-based investors represented by Takaful companies that have assisted FWU in raising funding under the Ijara-based (sale and leaseback) method. (Press Release)” target=”_blank”>Source
Posted on 14 December 2012 by Laxman | Email|Print
Strong global demand for Qatar Telecom’s imminent 10-year bond offering could prompt the company to reconsider its decision to cap the issue at $1bn, especially if interest from the United States is robust.
Investors are expected to pile into the issue, viewing it as virtually a sovereign issue priced at a small premium to Qatar government bonds and as a rare chance to invest in a corporate bond in the cash-rich state, the world’s top liquefied natural gas exporter. Qatar issued a $4bn Islamic bond, or sukuk, earlier this year in a two-tranche deal which attracted orders of over $25bn in total………………………………………..Full Article: Source
Posted on 14 December 2012 by Laxman | Email|Print
Between 100 and 150 new financial institutions could be launched in the next five to seven years to serve the Muslim countries including Bangladesh that are new in Islamic banking or have low rates of penetration, according to a report by consultancy firm, Ernst & Young.
“Ten of the 25 fastest growing emerging countries like Bangladesh have large Muslim populations. Islamic banks are set to expand to compete with conventional lenders in attracting mainstream customers,” the report noted. However, the local experts have agreed with the Ernst & Young study as there are ample opportunities to promote Islamic banking services in the country………………………………………..Full Article: Source
Posted on 14 December 2012 by Laxman | Email|Print
Standard Chartered Bank has launched an Islamic version of its online banking platform, Straight2Bank which will be offered in the United Arab Emirates, Bangladesh, Bahrain, Pakistan and Malaysia.
The new Shariah compliant platform, which is aimed at Standard Chartered’s growing Islamic customer base including SMEs, will give branchless access to cash management, trade, securities services and reporting………………………………………..Full Article: Source
Posted on 14 December 2012 by Laxman | Email|Print
BankDhofar is ready to launch ‘Maisarah’ Islamic banking services, subject to the Central Bank of Oman (CBO) approval. ‘Maisarah’, meaning ease or comfort, will be a fully serviced Islamic window which will enable customers to access Sharia- compliant products and services through its highly skilled Islamic banking division which was established at the start of the year.
An extensive feasibility study into Islamic banking was conducted by BankDhofar as a direct response to the Royal Decree issued by His Majesty Sultan Qaboos bin Said in order to ensure that the bank offers its customers a best in class Islamic banking experience………………………………………..Full Article: Source
Posted on 14 December 2012 by Laxman | Email|Print
Local banks are turning to the capital markets to finance expansion as they set their sights on growth both in the domestic market and overseas. On November 9, Qatar National Bank (QNB), the country’s largest bank by assets, announced that it had successfully completed a $1bn bond issue on the international markets, through its Euro Medium Term Note (EMTN) programme.
While QNB has turned to conventional debt markets to bolster its capital, counterparts have turned to the sharia-compliant (Islamic) instruments – particularly, of course, Islamic institutions. In October, Qatar Islamic Bank (QIB), the country’s largest sharia-compliant bank, issued a $750m five-year sukuk (Islamic bond) aiming to leverage high levels of liquidity and demand for issues in the region………………………………………..Full Article: Source
Posted on 14 December 2012 by Laxman | Email|Print
The Islamic Development Bank is offering a new program for the citizens of its member countries for 2013/2014 academic year, Education Ministry of Azerbaijan said.
The program includes studies in doctoral programs in a number of leading universities of the world, and a further research work. Persons wishing to participate in the program should submit their documents to the Ministry of Education until December 24………………………………………..Full Article: Source
Posted on 14 December 2012 by Laxman | Email|Print
PwC launched its first survey for Capital Projects and Infrastructure in the Middle East, titled “Delivering the Middle East’s Mega Projects”. The survey reveals that investment in major projects remains positive despite challenging economic conditions both globally and in the Middle East.
66% of respondents reported spending over $100m on major projects in 2012 across a broad range of industry sectors, with 72% expecting to increase their spending in 2013. Released today, the report seeks to establish issues and challenges facing project owners and explore opportunity markets. The report also sheds light on project financing issues, including funding constraints, perception of private financing and the funding outlook for 2013………………………………………..Full Article: Source
Posted on 14 December 2012 by Laxman | Email|Print
Representatives of banks, microfinance institutions and non-government organisations of 27 countries including Bangladesh have agreed to develop Islamic microfinance to assist millions of poor across the world, stakeholders said in Dhaka on Thursday. The agreement was reached at the three-day “Global Islamic Microfinance Forum” that concluded at the World Trade Centre in Dubai city of the United Arab Emirates (UAE) on Monday.
Delegates of the relevant institutions and organisations from the countries from Asia, Europe, Africa and America expressed their firm commitment to help eradicate poverty by expanding Islamic microfinance in the coming years………………………………………..Full Article: Source
Posted on 14 December 2012 by Laxman | Email|Print
The Malaysian insurance and takaful sector might see its earnings stability challenged by regulatory initiatives and the ongoing capital market volatility, said Fitch Ratings in a report.
The global rating agency said yesterday that regulators’ intention to eliminate both life insurers’ cap on acquisition costs and the fire tariff pricing structure could undermine the stability of their operating margins………………………………………..Full Article: Source
Posted on 14 December 2012 by Laxman | Email|Print
Fitch Ratings says Malaysia’s insurance and takaful sector may see its earnings stability challenged by regulatory initiatives and on-going capital market volatility. Otherwise, the sector will continue to be underpinned by steady market growth and sound capital management, as underlined in its Stable Outlook.
In a special report published today, Fitch says the regulator’s intention to eliminate both life insurers’ cap on acquisition costs and the fire tariff pricing structure could undermine the stability of insurers’ operating margin. The impending implementation of Personal Data Protection Act could also modify insurers’ business practice, potentially leading to higher compliance costs………………………………………..Full Article: Source
Posted on 14 December 2012 by Laxman | Email|Print
Takaful Ikhlas Sdn Bhd, a subsidiary of MNRB Holdings Bhd, estimates that its ChoicePlus brand medical card will generate some RM66 million in premium contributions for its financial year ending March 31, 2013.
Takaful Ikhlas executive vice-president Wan Mohd Fadzlullah Wan Abdullah said the card is expected to attract 70,000 participants. “Since the launch of Choice-Plus in September 2011, it has already attracted 14,000 employees and RM41 million in income,” he said after the signing an agreement between Takaful Ikhlas and the National Heart Institute (IJN)……………………………………….Full Article: Source
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