Posted on 08 March 2013 by Laxman | Email|Print
The National Bank of Bahrain (NBB) is likely to acquire the loss-making Bahrain Islamic Bank (BisB) and give itself an Islamic finance arm, the Trade Arabia News Service said. “We are in talks with BisB and we expect to make an announcement early next week,” it quoted Almoayyed as saying in an interview.
“We see this as a business opportunity as we do not have an Islamic banking operation and under our management we believe it will do well.” Trade News said that last year, BisB, the first Islamic bank in Bahrain, posted a net loss of 36 million Bahrain dinar ($94.95 million) compared with a net loss of 17 million Bahrain dinar for 2011………………………………………..Full Article: Source
Posted on 08 March 2013 by Laxman | Email|Print
The Turkish state will establish two new participation banks that offer interest-free services, using the names of Vakıfbank and Halkbank to benefit from their credibility in the market, sector players have said.
The new banks to be established will act as completely separate institutions from their eponyms with new banking permission licenses and fields of operation, but the brand popularity of Vakıfbank and Halkbank will help the banks be acknowledged in the market. Last week, Deputy Prime Minister Ali Babacan hinted that two state-owned banks may offer interest-free services, without giving specific names………………………………………..Full Article: Source
Posted on 08 March 2013 by Laxman | Email|Print
Qatar will sell QR4bn ($1.1bn) of three-year and five-year bonds and sukuk, the state news agency said yesterday. The Qatar Central Bank will offer local banks QR3bn worth of bonds and QR1bn worth of Shariah-compliant notes, Qatar News Agency (QNA) said.
The local currency issues will take place quarterly, it said, without specifying how much of each maturity would be sold. In January, the International Monetary Fund’s mission chief for Qatar told Reuters that the objective behind an issuance would be to build a domestic sovereign yield curve. Qatar Central Bank was not available for comment………………………………………..Full Article: Source
Posted on 08 March 2013 by Laxman | Email|Print
Albaraka Turk mandated four banks to secure a $200 million subordinated loan from international sukuk markets, the bank said in a statement on Friday.
Albaraka Turk is the Turkish subsidiary of Bahraini lender Al Baraka Bank………………………………………..Full Article: Source
Posted on 08 March 2013 by Laxman | Email|Print
In what would be its second bond sale this year, Emirates has mandated banks to arrange a potential dollar-denominated, benchmark bond [or sukuk] sale subject to market conditions, according to lead arrangers Citibank and Standard Chartered Bank.
Confirming the same, Emirates said in a statement to Gulf News yesterday: “Emirates has mandated Citigroup and Standard Chartered Bank as Joint Global Coordinators and Joint Lead Managers, together with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank and Emirates NBD Capital as Joint Lead Managers, to arrange a series of fixed income investor meetings in the UAE and Europe commencing on March 7,” adding that a USD Regulation S Sukuk benchmark offering may follow subject to market conditions………………………………………..Full Article: Source
Posted on 08 March 2013 by Laxman | Email|Print
Thirty-eight years after it first ventured into Shariah-compliant finance (with the launch of Dubai Islamic Bank), Dubai is aiming to get a bigger slice of the global Islamic bond market.
On February 27, His Highness Sheikh Mohammed bin Rashid Al Maktoum, vice-president of the UAE and ruler of Dubai, announced a government initiative to transform the emirate into a global center for sukuk. The scheme seeks to further strengthen Dubai’s position as a major player in regional and international finance, with a prime focus on supporting the Islamic economic sector………………………………………..Full Article: Source
Posted on 08 March 2013 by Laxman | Email|Print
Malaysia was cited as an example of why regional and global investors have good reason to be optimistic about the development of Asia’s debt capital markets.
On a panel discussion seeking to explore the demand and supply conundrum of Asia’s local and hard currency bond markets – touching on investment risk, liquidity and ease of access – Malaysia was praised for the strides it has taken………………………………………..Full Article: Source
Posted on 08 March 2013 by Laxman | Email|Print
Islamic fund managers in the Gulf are increasingly choosing foreign domiciles for their products, favouring their cost-efficiency and reputation for strong regulation as investors seek to avoid any suspicion of money laundering or tax evasion.
The last few years have been difficult for the Gulf’s Islamic fund industry as a whole; Western firms pulled out as they were hurt by the global financial crisis, and as slumping equity markets reduced investor interest. The fund arms of UBS, Citigroup, Allianz, Deutsche Bank, Credit Suisse and HSBC have liquidated some or all of their Islamic funds. In total, 88 funds have been liquidated globally in the last two years………………………………………..Full Article: Source
Posted on 08 March 2013 by Laxman | Email|Print
Misconception 1: Islamic finance is a front for financing terrorism. Facts: Islamic finance is a genuine, legitimate business, offering Sharia-compliant financial products as an alternative to existing financial products.
Islamic financial institutions are regulated and supervised in several jurisdictions and bound by strict laws, including anti-terrorism and anti-money laundering laws………………………………………..Full Article: Source
Posted on 08 March 2013 by Laxman | Email|Print
Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has been given the award for Most Outstanding Standard Setting Body by Islamic Finance News, an industry publication. The award was presented to AAOIFI at a ceremony in Dubai, United Arab Emirates, recently and accepted by Dr. Khaled R. Al Fakih, Secretary General and CEO of AAOIFI.
Dr. Al Fakih said that “In receiving the award, we are honouring the exceptional work of members of our Shari’a Board as well as Accounting and Auditing Standards Board and their committees in developing and reviewing AAOIFI standards. The award also reflects the tireless effort of the Chairman and members of our Board of Trustees in providing strategic oversight and guidance for AAOIFI operations.” (Press Release)
Posted on 08 March 2013 by Laxman | Email|Print
The National Bank of Abu Dhabi (NBAD), has been named the Best Asset Management House in the Middle East by International Takaful Awards for the second year running. “Winning this award for a second year in a row and adding this accolade to the list of other awards that NBAD’s Asset Management Group has won confirms that we continue to deliver innovative products that meet the highest expectations of investors and contribute to the development of the asset management industry in the country,” said Alan Durrant, the Group Chief Investment Officer of NBAD and General Manager of Asset Management Group.
International Takaful, which awarded the accolade based on financial achievement and client survey, recognized NBAD’s Asset Management Group for its superior performance and its commitment to innovate and offer Shari’a-compliant products. NBAD won the same award last year. ……………………………………….Full Article: Source
Posted on 08 March 2013 by Laxman | Email|Print
The Waqf Fund held its 5th Roundtable Discussion on “Shari’a and Corporate Governance Issues in SPV Governance” at Ritz Carlton. The Roundtable was attended by a select group including C-suite executives of Waqf Fund member institutions, lawyers, professional firms and Shari’a scholars. The Roundtable highlighted the key issues facing the Islamic banking industry in governing Special Purpose Vehicles (SPVs) both from Shari’a and corporate governance perspectives.
Mr. Khalid Hamad welcomed the participants and outlined the agenda for discussion. The Roundtable started with a presentation from Ms. Hana Al Murran of Central Bank of Bahrain who highlighted the regulatory and legal issues with SPVs (Press Release)
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