Companies across the world have been asked to disclose their business plans to reach net zero by the world’s largest asset managerThe simplest way to reach this target – negative emissions – is also the most likely to be overwhelmed by the demands of companies that haven’t found other ways to bring down emissionsFinancial institutions can find opportunity if they provide ESG-linked and transition financing to deliver other ways to reduce emissions, which brings more value than just money for companies struggling to meet investor expectations around net zero Bla...

RAM Ratings (RAM) has reaffirmed Cahya Mata Sarawak’s (CMS) MYR 2 billion Islamic Medium-Term Note (MTN) Programme’s (2017/2037) AA3/Stable rating and the AA3/Stable/P1 corporate credit ratings. RAM’s decision to reaffirm ratings was led by CMS’ standing as sole cement manufacturer and key construction material provider in Sarawak (or the State), Malaysia.  Whilst earnings and debt coverage metrics are anticipated to decline in the short-term, they are expected to pick up as...

The planned merger of Saudi Arabian-based Takaful operators Aljazira Takaful Taawuni (ATT) and Solidarity Saudi Takaful (Solidarity) is anticipated to create one of the five largest insurance bodies in the Kingdom over the next five years, according to Sager Nadershah, Managing Director and Chief Executive Officer (CEO) of ATT.  Speaking in a telephone interview with local media, Nadershah stated that ATT’s Board of Directors selected Solidarity after evaluating investment opportunities available in the Saudi market. Nadershah noted that a joint committee...

A report released by the International Monetary Fund (IMF) was affirmed and commented upon by Egypt’s Prime Minister, Mostafa Madbouly, and Egypt’s Minister of Finance, Mohamed Maait, on the 31st of January 2021. The report cited positive reviews of Egypt’s economic progress and the Government of Egypt’s battle with the repercussions of the COVID-19 crisis. Maait noted that the Government had provided the largest amount of protection and support measures to the most vulnerable groups within the coun...

Fitch Solutions (Fitch), research arm of Fitch Group, estimates a drop in Malaysia’s gross domestic product (GDP) growth from a projected 11.5% to 10% in 2021; citing muted private consumption. In a statement, Fitch states that strained finances for the Government of Malaysia  and a raised debt limit of 60% of GDP, allow less scope for fiscal support, putting employment and wages in Malaysia under intense pressure. The number of active COVID-19 cases in Malaysia stood at 48,150 as of the 31...

Indonesia’s annual inflation has slowed down for the first time in five months to 1.55% in January 2021, the lowest it has been for three months, due to inclement weather and weak domestic demand, as reported by local media.  According to Statistics Indonesia, locally known as Badan Pusat Statistik (BPS), Indonesia’s annual consumer price index (CPI) increased by 1.55% in January 2021 from the same month a year earlier, compared to an increase of 1.68% in December 2020 and a 1.59% increase in November 2020. Indonesia’s inflation in January 2021 falls bel...

The Accounting Board (AAB) of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has approved the issuance of the exposure draft on Financial Accounting Standard (FAS) for Takaful institutions, and has invited the Islamic finance industry to provide feedback on the draft, according to a recent AAOIFI statement.  The exposure draft on FAS on ‘Presentation and Disclosures in the Financial Statements of Takaful Institutions’ was initiated with the goal of aligning AAOIFI standards to global accounting standards, while addressing...

Local media reported that Indonesian President Joko Widodo (Jokowi) launched PT Bank Syariah Indonesia (BSI) at the State Palace on the 1st of February 2021. BSI is a merger of three state-owned sharia banks, namely PT Bank Syariah Mandiri, PT Bank BNI Syariah, and PT Bank BRI Syariah. On its way to being the country’s largest and amongst the world’s top 10 Shariah banks, BSI accounts for IDR 214 trillion in total assets and IDR 20.4 trillion in core capital.  President Jokowi encouraged BSI to serve a wide range of customers and iss...

Moody’s Investors Service (Moody’s) assigned a Baa3 senior unsecured rating with a Stable Outlook, to Dubai International Financial Centre (DIFC) Sukuk’s USD 700 million Sukuk Certificates (the Certificates) due 2024. DIFC Sukuk is a special purpose vehicle established in the DIFC by DIFC Investments (DIFCI), owned by the Government of Dubai. The Baa3 rating given to the Certificates is the same as the long-term issuer rating given to DIFCI, according to Moody’s. Moody’s notes that the primary reason for this is because the Certificates are the on...

Saudi-based information technology company, Al Moammar Information Systems (MIS) has renewed and modified a SAR 216.25 million Shariah-compliant credit facility agreement from Saudi British Bank (SABB), according to a Saudi Stock Exchange (Tadawul) statement filed on the 28th of January 2021. The funding, which was obtained on the 26th of January 2021 from SABB is effective from the 28th of January 2021 until the 31st of December 2021, according to the Tadawul filing. The facility was signed by MIS on the 28th of January 2021. The credit facility is...