Indonesian-based Bank Bukopin has disbursed a subordinated financing worth IDR 275 billion to its subsidiary Bank Syariah Bukopin (BSB) on the 29th of December 2020, according to local media reports.  Based on disclosure on the Indonesia Stock Exchange, the management of Bank Bukopin stated that the action was conducted to strengthen BSB’s capital structure, as well as complete the restructuring of BSB by 2020.  The loan will also increase the additional core capital of BSB and help meet its minimum core capital re...

Qatar’s economy is forecast to grow 3% year-on-year (YoY) in 2021, according to Standard Chartered, who revised its previous 2.1% YoY growth estimate, as reported by local media.  The revision follows the easing of the three-year old regional dispute by Saudi Arabia and its Arab allies on the 5th of January 2021. According to Standard Chartered, the end of the Gulf dispute will see the lifting of restrictions on trade and travel on Qatar, which will support the ongoing recovery in trade, tourism and logistics.  In addition, Standard Chartered stated...

The Kingdom of Bahrain’s economy registered real gross domestic product (GDP) growth of 1.4% quarter-on-quarter (QoQ), during the third quarter of 2020 (3Q 2020), in line with the global economic recovery trend, according to a quarterly economic report by the country’s Ministry of Finance and National Economy.  The 1.4% QoQ increase in real GDP during 3Q 2020, followed contractions during the first two quarters of the year (-2.8% QoQ in Q1 2020 and -4.1% QoQ in Q2 2020) as a result of the COVID-19 pandemic and low oil prices, according to the economi...

Moody’s Investors Service (Moody’s) has reported a negative outlook for credit worthiness amongst the Gulf Cooperation Council (GCC) nations in 2021. The negative outlook reflects the fall in oil revenue to GCC nations due to the impact of the COVID-19 pandemic, which is a key contributor to deteriorating fiscal strength.  Declines in oil revenue are also anticipated to constrain government spending and slow down the region’s economic growth. Moody’s forecasts GCC sovereigns to return to pre-pandemic real GDP levels&nb...

Fitch Solutions Country Risk and Industry Research  (Fitch Solutions) stated that Malaysia is expected to see an improvement in its current account performance during 2021. In its Outlook issued on the 6th of January 2021, Fitch Solutions expects Malaysia’s current account surplus to reach an estimated 3.0% of gross domestic product (GDP) in 2021, led by a robust goods balance amidst a strong crude palm oil price outlook and subdued imports, despite a pick-up in external regional demand.  However, according to Fitch Solutions, a...

Speaking to media on the 6th of January 2021, Datuk Seri Zulkifli Mohamad Al Bakri, Minister in the Prime Minister’s Department of Religious Affairs, stated that the Government of Malaysia was planning to launch standard operating procedures (SOPs) pertaining to Halal food products.  The SOPs, which are set to be launched in the near future, will comprise amendments to the Halal certification Act. These changes include a focus on the use of digitisation in the barcodes of Halal products, as well as the preventio...

Malaysian Rating Corporation (MARC) has affirmed its AA-IS rating on Cerah Sama’s MYR 420 million Sukuk, with a Stable Outlook.  Cerah Sama, is a Malaysian-based investment holding company of Grand Saga, which is the concessionaire of the 11.5 km Cheras-Kajang Highway.  MARC’s rating affirmation is driven by Cerah Sama’s strong cash flows and stable top-line, robust cash reserves, as well as the flexible repayment structure of the Sukuk. However, the rating is moderated by Cerah Sama’s leveraged capital structure, which has a...

Pemeringkat Efek Indonesia (PEFINDO) has affirmed the idBBB rating of Indonesian state-owned plantation company Perkebunan Nusantara III (PTPN), as well as several debt securities issued by the company. PTPN’s corporate rating outlook was maintained at ‘CreditWatch with Negative Implication’, as the company is still in the process of obtaining commitment from its lenders to restructure existing bank loans, which it is hoping to receive by early 2021.  According to an official statement, PEFINDO affirmed the idBBB(s...

Saudi Arabia’s ACWA Power has signed a USD 125 million Shariah-compliant corporate facility deal with the Arab Petroleum Investments Corporation (APICORP) to develop ACWA Power’s pipeline of future projects, according to local media reports.  The five-year Shariah-compliant financing deal, which was announced on the 4th of January 2021, aligns with the common goal of ACWA Power and APICORP to accelerate the energy transition in the Middle East and North Africa region and globally via green technologies, which make up over 15% of the financing portfol...

Egypt ranks third out of the top ten countries benefiting from funds from the Islamic Development Bank (IsDB) Group, with a total of USD 12.7 billion in funding received between August 2018 to December 2020, according to Hala El-Said, Minister of Planning and Economic Development, as reported in local media.  El-Said, who is also Egypt’s Governor at IsDB, stated that Egypt had secured USD 12.7 billion from IsDB to finance 338 projects, out of which 287 projects valued at USD 9.7 billion had already been completed, with 51 more ventures worth USD 3 billion still...