Pakistani electric supply company K-Electric Limited (KE) announced its plans of raising funds worth PKR 12 billion (USD 68.49 Million) through the issuance of KE rated, secured and privately placed listed Sukuk, as per a communication sent by the company to Pakistan Stock Exchange (PSX).Why it Matters?The issuance will see the use of its proceeds in funding permanent working capital requirements and KE’s ongoing routine Capex and Opex. Subject to obtaining all regulatory approvals and completing all statutory requirements and requisite corporate actions, a green shoe option of up to...

A recent CIBAFI survey found that almost one-third of Islamic fund managers offered sustainable Islamic fundsFund managers’ offerings of sustainable Islamic funds were in response to investor demand, and almost half said they had received some interest in Environmental, Social, and Governance (ESG)The steady growth of Islamic funds incorporating ESG highlights the importance of RFI Foundation’s quantitative research study, which offered clues about how fund managers can get the most out of the combination of ESG and Shariah screening A focus on environmental, social and go...

Debt issuance(s) keeps playing a pivotal role in financing budget deficits among emerging markets. Sukuk were used as an instrument to diversify the investor base for some sovereigns.If we are to look at how countries finance their respective deficits, we would find that they resort to several options, including: Issuance of debt instruments and loans (borrowing).Withdrawal from their foreign reserves.Sale of assets and privatization. For instance, before 2017, Saudi Arabia used to resort to financing a large part of its budget deficit by withdrawing from the foreign reserves. Howe...

Egypt’s Ministry of Planning and Economic Development stated that Egypt plans to sign a funding programme for 2022 with the International Islamic Trade Finance Corporation (ITFC) in February, according in a statement made in a meeting on the 7th of February 2022. The meeting was attended by Hala Elsaid, Egypt’s Minister of Planning And Economic Development and Hani Sonbol, Chief Executive Officer (CEO) of the ITFC in Saudi Arabia.Why it Matters?The funding programme for 2022 will include cooperation to support and develop the medium, small, and micro enterprises (MSMEs) sector...

The credit profiles of Malaysia’s Islamic banks are expected to remain stable in 2022 as economic recovery in the country continues to sustain the growth of the Islamic banking sector, according to the American credit rating agency, Fitch Ratings (Fitch).Why it Matters?The country’s Islamic banking sector is set to continue seeing support in 2022, prompted by high public demand for Islamic products and government and regulatory support. Islamic banks' capital levels are to remain steady on the back of profitability recovery driven by normalising operating income and credit cost...

The potential for Indonesia's Halal product exports has extended to approximately USD 3.6 billion, according to Pahala Nugraha Mansury, Deputy Minister of State-Owned Enterprises, citing the Indonesia Halal Market Report 2021 in an online seminar on “Islamic Young Entrepreneurs”, adding that the government supports efforts to increase investment in the sector.Why it Matters?The total value of Halal products and services in Indonesia holds the potential to reach USD 5.1 billion. Trade is projected to become an essential component of the Muslim community’s total expend...

United Arab Emirates-based Dubai Islamic Bank (DIB) has completed the issuance of its USD 750 million five-year senior unsecured Sukuk on the 8th of February 2022.Why it Matters?The issuance marks the country’s first Sukuk in 2022, prompting access to the international sukuk market to other issuers. Despite concerns around the global interest rate environment from investors, the issuance gained high demand and was oversubscribed more than 2.5 times, attracting more than USD 1.6 billion in offers.Details The Sukuk was launched at 95 basis points (bps) above US Treasuries (UST) fr...

United Arab Emirates-(UAE) based Abu Dhabi Islamic Bank (ADIB) has recorded profits of AED 2.33 billion (USD 634.4 million) in 2021 compared to AED 1.6 billion (USD 435.6 million) in 2020, representing a 45% increase in profits supported by customer growth and a drop in expenses, according to a statement dated 7th of February 2022.Why it Matters?ADIB’s customer base saw growth of almost 116,000 in the year ended December 2021 while its year-on-year expenses fell 8% as the bank maintained cost discipline and an improved 40.7% cost-to-income ratio capitalizing on investments in digital...

As reported by United States-based Invesco experts, 2021 saw a record year for Islamic Exchange-Traded Funds (ETFs) with over 900 new launches globally, more than USD 1 trillion in net income worldwide and USD 9.9 trillion Assets Under Management (AUM) by the end of November 2021.Why it Matters?Global Islamic finance assets are expected to amount to USD 4.94 trillion in 2025, supported by the range increase of Islamic ETFs. According to Dr Christopher Mellor, Head of EMEA ETF Equity and Commodity Product Management, ETFs’ appeal to investors lies in their reputed features of simplici...

Saudi Arabia’s Alinma Bank (Alinma) has recorded a 38% increase in profits in 2021 as net profit reached SAR 2.7 billion (USD 722 million) against SAR 1.97 billion (USD 525.3 Million) in 2020, owing to higher operating income. Why it Matters?Alinma stated that despite an increase of 4.2% in operating expenses, operating income rose by 17.3 %, an outcome of higher revenue of financing and investment income, First Vibrant Integrated Services (FVIS) investment income, fee income, and other operating income. The bank also noted that the rise in expenses was partially offset by...