The Ministry of Finance in Pakistan announced that it had received proceeds of USD 1 billion, raised through its international Sukuk issuance of 7-year tenor asset-backed Islamic Notes (Sukuk Ijarah) on the 1st of February 2022, marking the first proceeds under the newly established Trust Certificate Issuance Programme.Why it Matters? The issuance had marked Pakistan’s return to the Sukuk market in four years and was suggested to be its highest offered yield on Islamic Notes. In a statement, the Finance Ministry said that the transaction generated great interest as high-quality and l...

Saudi Arabia’s Al Rajhi Bank has announced the completion of its SAR 6.5 billion (USD 1.7 billion) SAR-denominated Tier 1 Sukuk through a private placement.Why it Matters?The bank first announced the Sukuk in a bourse filing dated 3rd of January 2022 with an undetermined amount and set to only be offered and sold in Saudi Arabia as it is limited to institutional or qualified clients. The par value for the issuance has been set at SAR 1 million (USD 26.6 million) with perpetual maturity, while the return is at 3.5% per annum fixed rate, payable quarterly from the date of issue excludi...

Moody’s Investors Service (Moody’s) recorded that Malaysia and Saudi Arabia continued to dominate Sukuk market issuance with 37% and 29% of total issuances, respectively, according to its Quarterly EM Issuance Monitor -Fourth Quarter (Q4), 2021.Why it Matters?Increasing sovereign and corporate space activity has resulted in a rise of Sukuk issuances in the Emerging Market (EM) by around 8%, from USD 149 billion in 2020 to about USD 160 billion in 2021. Green Sukuk issuance has also offered significant potential for future growth, with Malaysia and Indonesia leading th...

The Indonesian Government is set on promoting the establishment of a Halal Inspection Agency (LPH) in the private sector to strengthen the implementation of the Halal Product Assurance Agency (BPJPH) and accelerate the development of the Halal industry in Indonesia. According to Indonesia’s Vice President, Ma'ruf Amin in a speech at the 33rd-anniversary commemoration of the Food and Drug Analysis Agency (LPPOM) of the Indonesian Ulema Council (MUI) on the 25th of January 2022.Why it Matters?The government wants to pursue the Halal certification efforts of domestic products in the imm...

Malaysia’s largest electricity company Tenaga Nasional Berhad (TNB) has announced the issuance of MYR 500 million (USD 119.3 million) Islamic Commercial Papers (ICPs) (Murabahah and Wakalah) on the 26th of January 2022, according to updates on the Bond and Sukuk Information Exchange's (BIX Malaysia) website. This issuance is part of the TNB MYR 2 billion (USD 477.2 million) ICP Sukuk Wakalah Programme. Why it Matters?TNB is set on expanding its Renewable Energy (RE) arena to achieve its target of 8,300 megawatts (MW) of a RE capacity mix by 2025, to keep up with the global...

Malaysia’s new Financial Sector Blueprint outlines synergies of VBI with sustainable financeVBI has evolved to focus on environmental and social impact layered on top of a universal approach to sustainable financeIslamic financial institutions can build their own approach to responsible finance in order to stay competitive on ESG and climate risk and layer on a Shariah-inspired approach to achieve impact Bank Negara Malaysia has released its Financial Sector Blueprint covering the 2022-2026 period, and it includes a focus on sustainable finance that is intertwined...

According to a report dated 26th of January 2022 by the Bahrain-based General Council for Islamic Banks and Financial Institutions (CIBAFI), the Islamic funds market globally nearly reached USD 200 billion in assets under management (AUM), seeing a 300% growth in the last ten years despite the COVID-19 pandemic.Why it Matters? The growing demand for Environmental, Social, and Governance (ESG) investments invites a vast potential for the Islamic Financial Services Industry (IFSI) to play its significant role in the years ahead. A number of 345 Islamic financial institutions across 29 countr...

According to Fitch Ratings (Fitch), the Islamic finance industry in Nigeria is expected to carry on with its moderate growth trajectory in 2022-2023 with continuous support from its government towards the sector, Sukuk issuance by the federal government, newly established Islamic banks’ asset growth, and developments in regulatory frameworks.Why it Matters? Growing Nigeria’s Islamic finance market share requires solving long-term issues such as the limited public demand for Islamic products, low awareness, and the country's evolving regulatory and debt capital market infrastruc...

Bank Negara Malaysia (BNM), the country’s Central Bank, announced that it plans to form a regulatory framework for insurance technology (insurtech) in 2022. The plans were laid out on the 24th of January 2022 as part of BNM’s Financial Sector Blueprint 2022-2026 to encourage greater efficiency and competitiveness across the country’s financial sector.Why it Matters? The planned framework covers both conventional and Islamic Takaful insurance firms. It is aimed at accelerating the digitisation of the country’s insurance industry and allowing BNM to monitor the plans...

The United Arab Emirates-(UAE) based Ajman Bank has signed an AED 152 million (USD 41.4 million) agreement with Shariah-based property developer Arada to finance the construction of two key projects in the company’s Aljada master plan.Why it Matters? Aljada is a mixed-use development project that includes residential, entertainment, commercial, hospitality, education and retail outlets across a 24 million square foot area in the Muwaileh district of Sharjah, UAE. The financing amount secured from the agreement will see the use of AED 37 million (USD10.075 million) for a villa complex...