Towards a More Socially Inclusive and Sustainable Framework for Islamic Banking and FinanceFiqh, Islam, Islamic banking, Mal, PLS, Sadaqah, Sukuk, Waqf, Zakat, Mark-Up, Participation

Malaysia’s AmBank Islamic has developed a new product, Personal Financing-i, aimed at employees of the federal and state governments, government-linked companies, statutory bodies and other selected agencies. Details of the new facility were issued in a statement by AmBank on the 30th of December 2020.According to the statement, some key features of Personal Financing-i include financing of up to MYR 200,000 requiring no collateral, lock-in period or guarantor. In addition to this, borrowers are entitled to a three-month payment holiday at the point of loan disbursement, as well as an...

Al Rajhi Bank has finalised a Shariah-compliant financing agreement with Saudi Arabia-based Mulkia Investment Company, as stated in a Bourse filing on the 29th of December 2020. The facility has an associated withdrawable limit of SAR 600 million.In addition to providing promissory notes, Al Rajhi Bank has requested that the guarantees provided for the loan also include the mortgage of real estate assets equal to 200% of the value of facilities withdrawn by Mulkia Investment Company.Al Rajhi Bank has agreed that finance costs be repaid bi-annually, with the loan principle to be in the form...

RAM Rating Services (RAM) has assigned a preliminary AA3/Stable rating to Tanjung Bin Energy’s (TBE) proposed MYR 4.5 billion Islamic Medium-Term Note Programme (the Proposed Sukuk).TBE is a Malaysian-based independent power producer (IPP) that owns and operates an ultra-supercritical 1,000 MW coal-fired power plant (the Plant) in Tanjung Bin, Johor, under a 25-year power purchase agreement (PPA) with Tenaga Nasional, which is set to expire in March 2041.According to RAM, proceeds of the Proposed Sukuk will be used to repay amounts owed by TBE to its 100%-owned turnkey contractor, Ta...

Malaysia-based oil and gas contractor Uzma Berhad (Uzma) is planning to raise up to MYR 300 million via a Perpetual Sukuk Musharakah Programme (Sukuk Programme), according to a Bursa Malaysia filing.Uzma lodged the required information and documents pertaining to the setting up of the Sukuk Programme with the Securities Commission Malaysia on the 30th of December 2020, according to the filing.The Sukuk Programme allows the issuance of unrated perpetual Islamic notes from time to time, with flexibility for Uzma to issue secured and/or unsecured Perpetual Sukuk Musharakah not excee...

EFG Hermes has announced its successful conclusion of an EGP 600 million Sukuk issuance for Cairo for Investment and Real Estate Development (CIRA) on the 30th of December 2020, according to media reports.The Sukuk, which is based on an Ijarah structure, is the inaugural Sukuk issuance in the Egyptian education sector and generated substantial interest having been oversubscribed 2.3 times, with the subscription period opening and closing on the same day.The Sukuk was offered to eligible financial institutions and investors at a nominal value of EGP 100 apiece and carries a maturity of...

In November 2020, Qatar reported total exports (domestic origin and re-exports) of QAR 16.6 billion and total imports of QAR 7.5 billion, resulting in an international trade surplus of QAR 9.1 billion, according to local media reports.Whilst this amounted to a 28.6% month-on-month increase in November 2020, Qatar’s trade surplus was down 27.4% year-on-year compared to November 2019. Local media reports stated that the decrease in the value and volume of exports was mainly due to low oil prices resulting from the COVID-19 crisis.Despite the impact of the pandemic, economic experts are...

The Government of Indonesia has issued IDR 3.5 trillion worth of State Shariah Securities (SBSN), also known as State Sukuk series, on the 29th of December 2020 via private placement.According to a statement released by the Directorate General of Financing and Risk Management (DJPPR), Ministry of Finance, the issuance consists of one tradable series of Project-Based Sukuk (PBS), namely PBS-018. The State Sukuk PBS-018 will have a nominal issuance value of IDR 3.5 trillion and is offered with a fixed coupon rate of 7.625% per annum, with a 5.8% yield.The Sukuk is set to mature on the 15th o...

Malaysian Rating Corporation (MARC) has affirmed its AAIS rating on ANIH Berhad’s (ANIH) MYR 2.5 billion Senior Sukuk Musharakah Programme, with a Stable Outlook. Malaysia-based ANIH is the Highway Concessionaire of Kuala Lumpur-Karak Highway (KL-Karak) and Phase 1 of East Coast Expressway (ECE1) until 2032, according to MARC. MARC’s rating affirmation reflects the healthy cash flow generation and sufficient debt coverage of ANIH, brought about by stable traffic performance of KL-Karak and ECE1. In addition, the rating benefits from the subordinate and equity-like...

Al-Baraka Bank Pakistan, part of Bahrain-based Al Baraka Banking Group, has signed a Service Level Agreement (SLA) with Pak-Qatar General Takaful, a Shariah-compliant insurance provider in Pakistan, to provide Takaful coverage for Al Baraka Business Plus customers, according to local media reports.  The SLA was recently signed by Muhammad Nasir Ali Syed, Chief Executive Officer (CEO) of Pak-Qatar General Takaful and Ahmed Shuja Kidwai, CEO of Al Baraka Bank Pakistan along with senior officials from both organisations.  According to loc...