RAM Ratings (RAM) has assigned final ratings of Zamarad Asset’s (Zamarad) Tranche 5 MYR 85 million Class A Sukuk as AAA/Stable, and MYR 15 million Class B Sukuk as AA2/Stable. The Tranche 5 Sukuk is the fifth issuance under Zamarad’s MYR 2 billion Sukuk Murabahah Programme (the Programme).  Acting as a special-purpose vehicle, Zamarad was incorporated to undertake securitisation of personal financing facilities from the business partners of RCE Marketing (RCEM), which is a Malaysian financing services company. ...

Indonesia’s West Sumatra Regional Development Bank (Bank Nagari) has announced that it is in the process of preparing the requirements to convert into a Shariah bank, which is targeted to take place by the fourth quarter of 2021, as reported in local media. According to Idrianis, Head of the Corporate Secretary Division of Bank Nagari, the conversion from conventional to Shariah banking was targeted to be completed within two years after a shareholder meeting held in November 2019, with the deadline for Bank Nagari being set for the 30th of November 2021 f...

Saudi Arabia's ACWA Power International (ACWA) is planning to raise around USD 1 billion via the issuance of Sukuk in early 2021, according to media reports, based on people familiar with the matter.  The company, which is half owned by Saudi Arabia’s sovereign wealth fund and is a prominent power plan developer in the Middle East, has appointed the Saudi unit of HSBC Holdings and Samba Capital to act as advisors on the issuance, according to anonymous sources.  As reported by media, the Sukuk will be used to fund ACWA’s share of an USD 8 bill...

Oman-based Bank Nizwa has announced that it has signed a Shariah-compliant financing agreement worth OMR 20 million (USD 51 million) with Oman National Engineering and Investment Company (ONEIC) to establish a sanitation network in the Salalah region, according to media reports.  The Sahalnoot sanitation network project, which is valued at OMR 45 million, involves construction, operation and delivery of the sewerage network project in Sahalnoot in Salalah, and is reported to be a key project that will support overall development in the Dhofar regi...

Speaking at HSBC’s Global Economic Outlook virtual roadshow event in Egypt, economists at HSBC forecast positive growth for the country, expecting gross domestic product (GDP) to expand 2.4% year-on-year (YoY) in 2020, compared to an expected global contraction of 4.1%. According to HSBC estimates, Egypt’s GDP growth is anticipated to come in at 2.5% for 2021.  Addressing these estimates, Deputy Chairman and Chief Executive Officer of HSBC Egypt, Todd Wilcox praised the country for its resilience through COVID-19, supported by its 2016 reform strategies which...

Fitch Ratings (Fitch) explains that the impending merger between three Shariah-compliant banks in Indonesia have the capacity to form a Shariah-banking giant that can compete effectively with other large conventional banks.  The three banks, PT Bank BRISyariah Tbk, PT Bank Syariah Mandiri and PT Bank BNI Syariah, are state-owned subsidiaries of three of the four largest banks in Indonesia.  According to Fitch, Indonesia’s Shariah industry contributes just 6.0% to the country’s overall banking system assets, remaining a small segment of the...

Dubai Aerospace Enterprises (DAE) completed the sale of USD 750 million in Sukuk on the 19th of November 2020, according to a document issued from a bank involved in the deal.  With an initial price guidance of approximately 4.375%, the Sukuk comes with a tenure of five and a quarter year, carrying a profit rate of 3.875%.  The issuance was arranged by Bank ABC, Commercial Bank of Dubai ,  Credit Agricole, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, GIB, Goldman Sachs, HSBC, JPMorgan, Mizuho, Nat...

Kuwait International Bank (KIB) has issued USD 300 million in Tier 2 Sukuk, the issuance being over-subscribed by almost nine times, according to KIB sources. With an annual profit rate of 2.375%, KIB stated that the ten-year Sukuk remains non-callable for a period of five years, with over 50% of the issuance distributed amongst regional investors. The issuance was managed by Standard Chartered and Citigroup, whilst Boubyan Bank, First Capital Abu Dhabi Bank, KAMCO Invest, Emirates NBD Capital, and KFH Capital Investment Company serving...

Speaking at HSBC’s Global Economic Outlook virtual roadshow, Simon Williams, Chief Economist for Central & Eastern Europe, Middle East and Africa (CEEMEA), stated HSBC’s expectations for Qatar’s economy to grow are between 3.3% and 3.5%, in 2021.  Abdul Hakeem Mostafawi, Chief Executive Officer at HSBC Qatar, noted that the Government of Qatar’s immediate response to COVID-19, following a strong and decisive policy response, has maintained the country’s long-term fundam...

Egypt’s Financial Regulatory Authority (FRA) was set to have approved Sarwa Capital’s Sukuk issuance for the benefit of Contact Finance on the 21st of November 2020, according to local media reports.  The issuance worth EGP 25 billion comprises over 25 million Sukuk with a nominal value of EGP 100 per unit, and is part of a strategy to diversify sources of financing. The Sukuk-holders will receive a variable return, disbursement of which will commence in the month following the closing...