Moody’s Investors Service (Moody’s) has assigned a provisional (P)A1 senior unsecured medium-term note global scale rating (GSR) and Aaa.sa senior unsecured national scale rating (NSR) to the Government of Saudi Arabia’s domestic SAR-denominated Sukuk Issuance Programme, according to a recent statement. Concurrently, Moody’s has assigned an A1/Aaa.sa senior unsecured GSR/NSR to the latest Sukuk instrument issued under the Programme.  The respective GSR ratings mirror Saudi Arabia’s A1 issuer GSR, the latter of which is underpinned by the Gove...

Indonesia’s Ministry of Finance (MoF) will launch a cash waqf-based Sukuk or cash waqf link Sukuk (CWLS) retail series on the 9th of October 2020. The Sukuk issuance, which will be offered until the 12th of November 2020, will be used to finance social programmes in Indonesia’s state budget, local media reported.  According to Luky Alfirman, Director General of Financing and Risk Management of the MoF, the CWLS retail series is specifically targeting individuals to purchase Sukuk, and the MoF will be working with Islamic...

Pakistan’s sole fully-fledged Shariah-compliant asset management firm, Al Meezan Investments (Al Meezan) launched the country’s first Islamic Exchange Traded Fund (ETF). The Islamic ETF, which was launched along with three other ETFs on the 6th of October 2020, marked the launch of ETFs on the Pakistan Stock Exchange (PSX).  Al Meezan’s Islamic ETF was launched under the moniker Meezan Pakistan Exchange Traded Fund (MP-ETF), whilst the ETF will trade on the PSX under the ticker ‘MZNP-ETF’.  MZNP-ETF is approved by the Securit...

Abu-Dhabi-based National Central Cooling Company (Tabreed) announced in a filing on the 7th of October 2020, that it has gained shareholders’ approval to raise up to USD 1 billion in funding through either conventional bonds or Sukuk. In the filing to the Dubai Financial Market, Tabreed noted the funds are authorised for issue over the next twelve months and would be issued in one or more tranches. The funds raised will go towards financing acquisitions, as well as for general corporate purposes.  The statement added th...

Malaysian property developer Sunsuria Berhad has announced plans to issue up to MYR 500 million worth of Islamic medium-term notes or Sukuk Wakalah, according to a recent bourse filing.  Proceeds raised from the Sukuk Wakalah Programme, which will have a 30-year tenure, will be used to finance capital expenditure, working capital requirements, general corporate purposes as well as refinancing existing borrowing and future financing of the group.  Maybank Investment Bank has been appointed as the sole principal adviser, lead arrang...

Turkey’s gross domestic product is expected to contract by 3.8% in 2020, according to the World Bank, adding that this estimate remained unchanged from its previous forecast made back in 2014. Information from the “Europe and Central Asia Economic Update Fall 2020” revealed that the World Bank expects economic growth to recover in 2021, noting however that the economic growth rate for 2021 would depend on how long the pandemic persists.  Whilst Turkey is already recovering from COVID-19, the World Bank noted that the growth wou...

The important need of Shariah investment banking to boost the development of Indonesia’s Islamic economic ecosystem was highlighted by the National Islamic Finance Committee (KNEKS) during the Indonesia Shariah Economic Festival 2020 International Webinar Series held on the 7th of October 2020.  According to Taufik Hidayat, Shariah Financial Services Director of KNEKS, Shariah investment banking served as a liaison for investors, corporations and the government, and played a vital role in providing essential services such as large-scale...

Indonesia has invited Malaysian companies to cooperate in developing the Halal products industry to boost the economy of both countries, according to media reports.  Budi Arie Setiadi, Indonesia’s Deputy Minister of Villages, Disadvantaged Regions and Transmigration, stated that Malaysia’s wide experience and participation in the Halal products industry as well as Indonesia’s vast resources and materials could be used for mutual benefit, while inviting Malaysian companies to discuss the potential of cooperation, during a visit to...

The development of Islamic financial tools can help reduce the financial impact of COVID-19 on vulnerable populations, according to the World Bank.  Speaking at the recent launch of the World Bank Sustainable and Inclusive Finance Forum webinar, Victoria Kwakwa, East Asia and Pacific Vice President of the World Bank Group, stated that there was an opportunity to collaborate with relevant stakeholders to use Islamic financing tools to lessen the impact of the pandemic while also supporting the 2030 Sustainable Development Goals.  Kwakwa also acknowled...

Indonesian telecommunication services company Mora Telematika Indonesia (Moratelindo) has issued Sukuk Ijarah worth IDR 389.515 billion for refinancing and business expansion purposes.  The issuance, which comes under Moratelindo’s Sustainable Sukuk Ijarah I Phase III of 2020, consisted of two series; Series A valued at IDR 333.365 billion and Series B with a total value of IDR 56.150 billion, according to a statement issued on the 6th of October 2020. The issuance is part of the company’s IDR 3 trillion Sustainable Sukuk Ijarah I. &nb...