Posted on 19 February 2013 by Laxman | Email|Print
Dubai Investments, a holding company with interests in real estate, manufacturing and financial services, is preparing to launch an Islamic bond worth up to Dh1 billion ($272.5 million), its chief executive said on Monday.
The sukuk, which comes amid a period of high demand and a flurry of bond sales in the region, is to be launched by the end of April in the name of Dubai Investments Park, a major real estate development Dubai Investments owns on Dubai’s outskirts, Khalid Bin Kalban said. The proceeds will be used for expansion and to repay existing liabilities…………………………………….Full Article: Source
Posted on 19 February 2013 by Laxman | Email|Print
Barwa Bank, the Qatari lender that became one of the top 10 underwriters of Arabian Gulf Islamic bonds within three years of opening, plans to seek a credit rating in the second half before a possible sukuk sale.
Qatar’s smallest Islamic bank helped issuers including the Qatar, Dubai and Turkish governments sell sukuk last year, as sales in the region tripled, according to the lender’s data. Barwa Bank arranged US$863 million of notes in 2012, just behind QInvest, a unit of Qatar Islamic Bank, the nation’s biggest Sharia-compliant lender by assets, data compiled by Bloomberg show. That made it the eighth-biggest underwriter out of 25 for Gulf Cooperation Council sukuk…………………………………….Full Article: Source
Posted on 19 February 2013 by Laxman | Email|Print
Despite a compound annual growth rate of 20% to 35% and global syariah-compliant assets estimated at US$1.3 trillion (RM4.02 trillion) last year, there is still no comprehensive legal framework for global Islamic finance.
But this will soon change when Malaysia introduces the world’s first comprehensive legal framework for the Islamic finance industry. Called the Islamic Financial Services Act 2012 (IFSA 2012), it is expected to be gazetted next month…………………………………….Full Article: Source
Posted on 19 February 2013 by Laxman | Email|Print
Is the Islamic bank public ready? Who is on the shariah board? Is it appropriately capitalised, qualified human assets in place, vetted marketing materials, public inter-facing staff properly trained, strategy, tactics and execution in place with timelines and refinement feedback, customer service sharp and responsive, etc., as unexpected challenges will rise internally/externally.
Finally, what is the background of the CEO and is there confidence by the senior leadership team (SLT) and rank and file, as his vision must ultimately be executed with driven motivation…………………………………….Full Article: Source
Posted on 19 February 2013 by Laxman | Email|Print
Oman-based Ahli Bank has inked a Memorandum of Understanding (MOU) in order to explore the feasibility for the takeover of Taageer Finance Company. In a regulatory filing with the Muscat Securities Market (MSM), the bank said the purchase price consideration will be in range between 176 and 177.50 Baiza per share.
Inclusive of cash/stock dividends, the consideration price will be adjusted downwards to reflect cash/stock dividends received by Taageer shareholders, if paid based on financials for the year ended 31 December 2012 and subsequently…………………………………….Full Article: Source
Posted on 19 February 2013 by Laxman | Email|Print
The Islamic Development Bank (IDB) has approved financing worth US$ 450.8 million for new development projects in member countries as well as Muslim communities in non-member countries.
Construction projects approved for financing include US$ 125 million for the development of the Qukës-Qafë Plloçë Section of the Tirana-Korca Road Corridor in Albania, and US$ 20 million for construction of the Sukuta-Jambangelly Road Project in the Gambia…………………………………….Full Article: Source
Posted on 19 February 2013 by Laxman | Email|Print
Mergers and acquisitions, quality of talents and embracing technology are key areas for Islamic banks to move forward, in addition to focusing more on quality rather than percentage of growth.
“There are 13 banks that are big with more than US$1 billion [RM3.09 billion] each in equity whereas the rest of the industry is small, lacking scale,” Ernst & Young (E&Y) partner, Islamic banking excellence centre, Ashar Nazim told The Malaysian Reserve last week…………………………………….Full Article: Source
Posted on 19 February 2013 by Laxman | Email|Print
The Maybank Group delivered another strong financial performance for the year ended Dec 31, 2011, compared to the previous corresponding period, with profit before tax (PBT) and profit attributable to equity holders of the bank rising by 20.1% and 20% respectively.
Earnings per share was up by 13.8% to 34.4 sen. Growth in profit was spurred by higher net income which climbed 21.6% and a decline of 13.9% in allowance for losses on loans despite an increase of 25.7% in overhead expenses…………………………………….Full Article: Source
Posted on 19 February 2013 by Laxman | Email|Print
Islamic insurance (Takaful) is flourishing all around the world alongside Islamic Banking. Its global market size has reached 12 billion USD whereas the number of Islamic Takaful institutions has exceeded to 350. These views were expressed by Muhammad Zubair Mughal, the Chief Executive Officer of AlHuda Centre of Islamic Banking and Economics (CIBE) at the inauguration of AlHuda CIBE’s subsidiary “Takaful Consultancy Wing”.
The inaugurated was held by Justice (r) Khalil Ur Rehman, Shai’ah Advisory of AlBarkah Bank in the ceremony organized at the head office of AlHuda Centre of Islamic Banking and Economics. Captain Jamil Akhtar Khan, Ex Chief Executive Officer, Takaful Pakistan, Abdul Samad, the Shari’ah Advisory Bank of Khyber and other prominent personnel of Islamic banking industry attended the ceremony…………………………………….Full Article: Source
Posted on 19 February 2013 by Laxman | Email|Print
Islamic insurance (Takaful) is flourishing all around the world alongside Islamic Banking. Its global market size has reached 12 billion dollar whereas the number of Islamic Takaful institutions has exceeded to 350.
Banking industry experts said that though Takaful industry is prospering in the recent times; however it’s also facing certain challenges which include: issues regarding re-Takaful, regulatory challenges, competition and lack of human capital. These issues can be resolved by employing effective strategies and through proper planning…………………………………….Full Article: Source
Posted on 19 February 2013 by Laxman | Email|Print
The industry is still in its nascent stage, but has the potential for growth both in the context of the unique value proposition it carries and the global interest and growth, Islamic Finance has generated particularly in the aftermath of the global financial and economic crisis.
The industry is seeing the emergence of a number of conventional banks and finance companies opening ‘Islamic windows’; market awareness is on the increase, particularly among Non-Islamic customers on the UVP of Islamic finance; regulators are beginning to understand and respond favourably to the business model of Islamic finance; many new products are being introduced……………………………………Full Article: Source
Posted on 19 February 2013 by Laxman | Email|Print
Bank Mandiri will channel anotherf Rp 800 billion ($83 million) to its Shariah unit to expand its services. The total capital infusion to Bank Syariah Mandiri will reach ahead of its listing in the Indonesia Stock Exchange (IDX). Bank Syariah Mandiri is trying to meet the Rp 5 trillion requirement needed to provide a domestic trust service for Indonesian customers.
The bank plans to offer corporate customers Shariah-compliant investment and lending options, according to Sunarso, the bank’s director for commercial and business banking…………………………………….Full Article: Source
Posted on 19 February 2013 by Laxman | Email|Print
As the financial reports for 2012 become available, it is clear that there has been a significant improvement in the balance sheets of banks in Dubai. The negative impact of the property crash of 2008-09 is diminishing and asset quality is improving.
The largest bank in Dubai, Emirates NBD, revealed results beyond expectations for 2012, which caused a one third rise in its share price in January. While there will be some profit taking, the longer-term share price outlook is now positive given the management strategy of the bank, which is to focus on retail business…………………………………….Full Article: Source
Posted on 19 February 2013 by Laxman | Email|Print
The controversial Islamic bonds (sukuk) draft law is expected to be presented to a Cabinet meeting Wednesday after the body’s legislative committee reviews it, Finance Minister Morsy Hegazy said on Monday.
Hegazy also said during a conference in Cairo that the government has finished amending its economic and social reform program and would soon present it to President Mohamed Morsy in preparation for an impending visit from the International Monetary Fund delegation…………………………………….Full Article: Source
Posted on 19 February 2013 by Laxman | Email|Print
Columbia Asia Sdn Bhd has issued a RM300 million sukuk (Islamic bonds) to partly finance its future capital expenditure, for working capital and the redemption of its existing syndicated financing facility.
This is the first time Columbia Asia has tapped the sukuk market for its funding requirements. The sukuk was issued in two tranches, with maturities ranging from five to 10 years to the identified placees on a private placement basis…………………………………….Full Article: Source
Posted on 19 February 2013 by Laxman | Email|Print
Malaysia’s RAM Ratings has reaffirmed the respective AA3/P1 and A2 ratings of Binariang GSM Sdn Bhd’s (“BGSM” or “the Group”) Senior Sukuk and Junior Sukuk. We have maintained the negative outlook on both long-term ratings.
The Senior Sukuk consists of BGSM’s RM19 billion Islamic Medium-Term Notes Programme and RM2 billion Islamic Commercial Papers Programme. The Junior Sukuk refers to the Group’s US$900 million (RM2.78 billion) Cumulative Non-Convertible Islamic Junior Sukuk…………………………………….Full Article: Source
Posted on 19 February 2013 by Laxman | Email|Print
OSK-UOB Investment Management Bhd launched its latest fund, the OSK-UOB Dana Kidsave, which aims to maximise total returns through a combination of long-term growth of capital and current income, consistent with the preservation of capital.
OSK-UOB said the initial offer period of the fund, which comprised 500 million units, will be from today to March 10. “The initial minimum investment amount is RM1,000 and is suitable for investors who require investments that comply with the Shariah requirements, it said in a statement…………………………………….Full Article: Source
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