As France attempts to launch its nascent Islamic financial sector, its first Sukuk issues finally appeared last summer. Since the first declarations by the Minister of the Economy in 2008, fiscal adjustments concerning Islamic financial instruments have made slow but sure progress, but the development of Islamic products has been very gradual.
However, there has been some progress in the area of Islamic retail banking. In June 2011, Chaabi Bank, The French subsidiary of the Moroccan Banque Populaire Group, opened an Islamic window offering Islamic deposit accounts for private customers……………………………………….Full Article: Source

Saudi Electricity Company’s Islamic debt has returned 50 per cent more than global peers since its debut almost nine months ago, boosted by the scarcity of corporate-bond investments in the region’s biggest economy.
The state-controlled utility’s dollar-denominated 2022 notes have handed investors 10 per cent since their sale at the end of March, according to data compiled by Bloomberg. The Bank of America Merrill Lynch Global Utility Index returned 6.8 per cent over the same period……………………………………….Full Article: Source

Banque Saudi Fransi (BSF), part-owned by Credit Agricole, will close a SR1.9 billion ($506.6 million) Lower Tier 2 Islamic bond issue today (Tuesday), a source familiar with the matter said. The subordinated sukuk will boost Banque Saudi Fransi’s supplementary capital reserves, or Tier 2 capital. Bonds and sukuk issued to raise Tier 2 capital are usually classed as subordinated debt, meaning they would be below secured creditors in the event of any restructuring.
Banks in the Kingdom have been boosting capital reserves through debt issuance this year, despite having healthy levels in comparison to international peers, as they look to replenish reserves after strong lending growth in recent years……………………………………….Full Article: Source

Malakoff Corp Bhd’s move to buy Hicom Power Sdn Bhd for RM575 million will be funded primarily by a sukuk issuance. This is seen as a move to strengthen the MMC Corp Bhd’s energy utilities subsidiary before its initial public offering (IPO) in the second-quarter of next year.
The acquisition of Hicom Power, an operation and maintenance company for power plants, will be funded by issue of sukuk worth RM460 million while the rest will be paid through internally generated funds……………………………………….Full Article: Source

The Malaysian bond market is expected to grow between 4.5% and 5% despite the current turmoil in Europe and uncertain prospects in the global economy, according to Hwang Invesment Management Bhd (HwangIM).
HwangIM is still constructive about the country’s bond market and the Malaysia Government Securities (MGS) is still one of the higher yielding sovereign bonds in the region, trading at 3.5% yield for the 10-year MGS. “Foreign investors hold 40% of the MGS and it is the driving influence for the bond market,” its head of fixed income Esther Teo Keet Ying said……………………………………….Full Article: Source

MARC affirms its AA-IS and A- ratings on Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd’s MYR 820 million Sukuk Musyarakah MTN and MYR 50 million Junior Bonds. MARC affirms its ratings on Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd’s (Kesturi) MYR 820 million Sukuk Musyarakah Medium Term Notes Programme (Senior Sukuk) and MYR 50 million Redeemable Junior Bonds (Junior Bonds) at AA-IS and A- respectively. The outlook for both ratings is maintained at stable.
The affirmed ratings reflect the satisfactory growth of traffic volume on Kesturi’s toll road concession on the Duta-Ulu Kelang Expressway (DUKE) and the company’s improving financial performance which has been adequate to meet its debt service obligations……………………………………….Full Article: Source

Kazakhstan is moving aggressively to improve trade ties with Malaysia, especially in the areas of Islamic finance and halal food. “It is important to continue to build and enhance cooperation with Malaysia, as the transfer of expertise has proven successful in generating economic areas in those previously explored,” said the Deputy Chairman, Ministry of Industry and New Technologies Kazakhstan, Erlan K. Khairov.
“In addition to global interest in the Islamic financial system, this effort is in line with our desire to become the country’s halal hub for the Middle East,” he said………………………………………Full Article: Source

Business Bermuda’s Chief Executive Officer, Cheryl Packwood said: “Offshore jurisdictions like Bermuda have had a role to play in the development of the Islamic finance industry so far and we can do more to contribute to this natural expansion. The discussion should not be about the offerings of each country as competitors, but rather what we can do together with the international Islamic finance community to expand the industry, grow capital and benefit from its growth.
“Islamic finance is not just for Muslims. The principles behind it – transparency, ethical investment, fair dealing and risk and reward-sharing can appeal to a number of investors. The manner in which companies approach Islamic Finance must evolve to embrace this wider audience. This is about both sides participating in the risk and the profit. It is an alternative way and also potentially a very good way to do business and grow economies. ”………………………………………Full Article: Source

Ajman Bank , the award-winning Islamic financial services institution committed to transforming the experience of Islamic banking, announce a new Home Finance offer with an unprecedented profit rate starting from 2.99%.
The move comes as part of the bank’s commitment to further support the growth of the booming real estate sector in the country and, following the Bank’s signing of an MOU with Sheikh Zayed Housing Programme in August earlier this year, is also aimed to address the housing needs of customers and families in the UAE to acquire their dream homes at most affordable rates. (Press Release)

Islamic Bank of Britain plc (IBB), the UK’s only wholly Sharia compliant retail bank, is pleased to report a 63% increase in home financing and a 43% increase in long-term savings deposits for the first three quarters of 2012 (1st January to 1st October 2012).
Growth and demand, has been driven through the launch and development of new savings products, the IBB Home Purchase Plan (HPP, the Sharia compliant mortgage alternative) and Buy to Let Purchase Plans, supported by effective sales and marketing strategies……………………………………….Full Article: Source

A joint venture between Al Madina Financial and Investment Services and Malaysia’s ACA Amanie Al Madina ACA Amanie is planning to form a $50 million Sharia-compliant small and medium enterprise (SME) fund, as part of a major initiative to develop the market for Islamic finance.
An initial memorandum of understanding (MoU) was signed between Al Madina Financial and Investment Services and ACA Amanie, which is a joint venture between Korea Finance Corporation and Malaysia’s Amanie Advisors……………………………………….Full Article: Source

ING has completed the sale of its insurance operations in Malaysia to AIA Group Ltd. (AIA) with a net transaction gain of approximately EUR 750 million after tax. The sale includes ING’s life insurance business, its market-leading employee benefits business and its 60-percent stake in ING Public Takaful Ehsan Berhad.
As announced on 11 October 2012, ING received a total cash consideration of approximately EUR 1.3 billion for the Malaysian insurance business……………………………………….Full Article: Source