Malaysian Rating Corporation (MARC) has affirmed Penang Port Sdn Bhd’s (PPSB) MYR 1 billion Islamic Medium-Term Notes (MTN) Issuance Programme with a Stable Outlook, according to a recent statement.  PPSB operates Penang Port, Malaysia’s oldest port, under a long-term concession agreement that is expiring on the 31st of December 2041. MARC’s affirmed rating reflects Penang Port’s ability to cope with the difficult trade environment resulting from the impact of the COVID-19 pandemic, given its key trade position in...

Malayan Banking (Maybank) has completed the issuance of Tier 2 subordinated Sukuk Murabahah valued at MYR 3 billion, according to a filing with Bursa Malaysia on the 9th of October 2020.  The Sukuk Murabahah, which were rated AA1 by RAM Ratings, is made up of two tenures; a ten-year tenure with a nominal value of MYR 2.3 billion and a profit rate of 2.9% per annum, as well as a 12-year tenure valued at MYR 700 million with a 3.1% profit rate per annum, according to local media reports.  Proceeds...

A key topic discussed at the International Conference of Zakat (Iconz) 2020, was the role of Zakat and Waqf contributions, as key contributors for inclusive development. Speaking at the Iconz, Director of Distribution and Utilization of Baznas, Irfan Syauqi Beik, stated that the optimisation of all available resources was required to deal with economic destruction left in the wake of COVID-19, as well as to mitigate its impact on individual’s social lives.  Beik added that the global potential for...

Le secteur financier islamique fait son bon bout de chemin au Cameroun. Bien que le marché soit concentré sur les projets publics de développement de la finance islamique porté par l’État et ses partenaires du monde islamique, on assiste depuis peu au développement d’un secteur financier islamique. En effet, on peut compter dans le marché camerounais: Une (1) fenêtre islamiqueUne (1) institution de microfinance islamiqueQuatre (4) structures impliquées dans des projets pilotes de financement en mode islamique...

Head of the Financial Literacy and Inclusion Department of Indonesia’s Financial Services Authority (OJK), Kristianti Puji Rahayu, stated that whilst Islamic literacy in the country had gone up from 8.11% to 8.93%, Shariah inclusion had declined from 11.1% to 9.1%. These metrics lagged far behind conventional comparisons.  Speaking at a webinar on the 9th of October 2020, Rahayu identified several strategies established by the OJK to encourage improvement in these indices going forward. One such strategy he noted was to adopt a hab...

Previously anticipated to roll out its value added tax (VAT) scheme in 2021, tax expert Joanne Clarke, Tax Director at Pinsent Masons Middle East, stated that this was now uncertain.  Analysing different scenarios, Clarke noted that a timely implementation within the first six months of 2021, could support Oman’s economic growth and stability. Speaking on the likely impacts of the VAT, Clarke stated that a standard VAT rate of 5.0%, would yield potential VAT revenue of between 1.2-1.5% of gross domestic product within its first-yea...

Loan syndications seem to be the financing mode of choice for core Islamic market players in countries such as Malaysia, Turkey, and the Gulf Cooperation Council, with Islamic syndicated loan facilities slightly outperforming the Sukuk market in 2020, according to S&P Global Ratings (S&P Global).  Whilst majority of the USD 50.1 billion syndicated deals secured in core Islamic markets during the first half of 2020 remain conventional, Mohamed Damak, Senior Director and Global Head...

Tropicana Corporation (Tropicana), a Malaysian residential property managers company, has issued MYR 318 million in Islamic bonds, as part of its MYR 1.5 billion Sukuk Wakalah programme, according to a recent bourse filing.  The proceeds of the issuance will be used to pay off existing financing or borrowings, to cover fees, costs and expenses of the Sukuk programme as well as for capital expenditure and investment purposes.  The Sukuk, which has been assigned a credit rating of A+IS with a Stable Outlook by Malaysi...

The Islamic Corporation for the Development of the Private Sector (ICD), a unit of the Islamic Development Bank (IsDB), has announced the successful issuance of a five-year USD 600 million Sukuk issuance, which was priced at Mid Swap (MS) + 140 basis points (bps) area.   According to a statement released by ICD, which is rated A2/Stable by Moody’s Investor Service and A- by Fitch Ratings, this was the largest Sukuk issuance by ICD since inception, and twice the amount of its first Sukuk issuance of USD 300 million in 2016. The orde...

Chief Executive Officer of Banking Supervision of Indonesia’s Financial Services Authority (OJK), Heru Kristiyana, stated that there are currently 22 Islamic financial institutions serving as Recipients of Cash Waqf (LKS-PWU), with 4 banks as distribution partners. These 22 Islamic banks comprise 8 Shariah commercial banks, 13 Shariah business units and 1 Shariah rural bank (BPR). According to Kristiyana, there are still several financial institutions that can participate within the industry serving as LKS-PWU, given that 8 out of 14 Islamic banks, 13 out...