Malaysian Rating Corporation (MARC) has assigned a preliminary rating of AA-IS to Sparks Energy 1’s proposed MYR 220 million ASEAN Green Sustainable and Responsible Investment (SRI) Sukuk, with a Stable Outlook.  Sparks Energy 1 was incorporated as a special purpose vehicle to raise funds for the development of 30 MWac solar power plants in Kuala Muda, Kedah and Machang, Kelantan. These power plants are being developed by BGMC BRAS Power (BBP) and Idiwan Solar (IS) at a total cost of MYR 411.7 million under solar power purchase agreements (PPA) with Tenaga Nasional...

The Islamic Development Bank (IsDB) and the World Health Organization (WHO) are collaborating with Yemen’s Ministry of Health and Population and Ministry of Planning and International Cooperation to provide emergency COVID-19 support, according to a recent IsDB statement. The IsDB is providing a USD 36.6 million COVID-19 support package to Yemen, which includes USD 20 million in emergency support for the country’s health sector.  The USD 20 million support, which is part of IsDB’s USD 100 million pledge made a...

Preliminary data released by Oman’s National Centre for Statistics and Information (NCSI) has revealed that the country’s nominal gross domestic product (GDP) declined by 13.4% year-on-year (YoY) in the second quarter of 2020 (2Q 2020), compared to the same period in the previous year, as reported in the August 2020 Monthly Statistical Bulletin issued by the Central Bank of Oman (CBO) recently. The contraction in the economy was attributed to a 20.0% YoY decline in the hydrocarbon sector, as well as a 9.9% YoY decline in the non-hydrocarbon sect...

The Monetary Authority of Brunei Darussalam (Autoriti Monetari Brunei Darussalam; AMBD), which serves as the country’s Central Bank, has successfully announced the pricing of its 186th issuance of short-term Sukuk Al-Ijarah securities amounting to BND 100 million, according to a recent statement.  The 186th issuance of Sukuk was made on the 8th of October 2020, and is set to mature on the 7th of January 2021 with a 91-day tenure, at a rental rate of 0.125%, according to the AMBD statement.  The AMBD manages and administers t...

In its latest update of the World Economic Outlook released on the 13th of October 2020, the International Monetary Fund (IMF) has revised down its estimate of Indonesia’s gross domestic product to a 1.5% contraction, compared to its previous estimate of a 0.3% contraction back in June 2020. The IMF’s estimate revision comes as Indonesia continues to bring the COVID-19 pandemic under control. Official data showed that the total number of COVID-19 cases reached 340,622 as of the 13th of October 2020, with over 12,000 deaths reported. Local media reports indicate tha...

Sovereign, multilateral and corporate issuers have shown the broad applicability of green Sukuk to address climate changeThe range of projects financed by green Sukuk remains limited mostly to renewable energy and green buildings but will expand as the market maturesThe governance characteristics built into Sukuk structures, combined with a sustainability focus, could create a new type of ESG instrument The green Sukuk market may still be new, but it has evolved far enough to be able to assess where it is in terms of its development, which the World Bank has done in a recent repo...

Fitch Ratings (Fitch) has revised down its Outlook on the United Arab Emirates’ (UAE) National Central Cooling Company (Tabreed) to Negative from Stable, whilst the Long-Term Issuer Default Rating (IDR) as well as Tabreed Sukuk SPC Limited's senior unsecured notes have been affirmed at 'BBB'. Fitch has also assigned an expected rating of BBB (EXP) for the proposed senior unsecured notes, at the same level as Tabreed’s IDR, given that the notes constitute Tabreed’s direct and senior unsecured obligations. Tabreed expects to use the proceeds...

The International Islamic Trade Finance Corporation (ITFC), part of the Islamic Development Bank (IsDB), recently signed a USD 386 million financing agreement with Pakistan to finance oil and liquefied natural gas (LNG) imports by December 2020.  The facility will be used by Pakistan State Oil Company Limited (PSOL), Pak Arab Refinery Limited (PARCO) and Pakistan LNG Limited (PLL), according to a statement issued by Pakistan’s Ministry of Economic Affairs. Funds will be used to purchase crude oil, petroleum products and LNG shipments.  The financing agre...

The Indonesian economy began to recover in the third quarter of 2020 (3Q 2020) and is expected to grow stronger in the fourth quarter, due to the Government of Indonesia’s National Economic Recovery Programme, which includes support for health, social assistance and small and medium enterprises, according to Finance Minister Sri Mulyani Indrawati.  Speaking at a recent virtual Financial Professional Expo, Indrawati stated that although the Indonesian 3Q 2020 economic growth was still projected to be in the negative range, it was expected to improve following the 5.32% contrac...

Uzbekistan has drafted a presidential decree on measures to introduce securities based on the principles of Islamic finance or Sukuk, and plans to implement a pilot project for the issuance of Sukuk securities in 2021, according to the Capital Market Development Agency of Uzbekistan.  The draft regulation, which has been published for public discussion, covers several types of Sukuk, and legal and tax considerations. According to media reports, the pilot project would allow local companies to issue Sukuk both domestically and abroad within the confines of English law...