In a filing with Bank Negara Malaysia’s (BNM) Fully Automated System for Issuing/ Tendering (FAST) website, the country’s Central Bank remarked that it might purchase up to 10% of the Malaysian government’s proposed issuance of MYR 3 billion (USD 715.75 million) Islamic securities in the form of Government Investment Issues (GII) under Murabahah contract.Why it Matters?BNM is the facility agent for the issuance and has stated that the securities will be issued on the 31st of January 2022 with an annual profit rate of 3.447%. They are to be redeemed at par on the 15th of J...

Alkhair Capital Saudi Arabia (Alkhair Capital) has signed a Memorandum of Understanding (MoU) with KLAIM Holdings Limited (KLAIM) for the launch of USD 50 million worth of investment products aimed at supporting healthcare service providers in the Middle East and North Africa (MENA) region.Why it Matters?The current average turnaround period for a medical insurance claim in the MENA region is 112 days, with some cases taking up to 270 days, posing a serious cash flow issue to hospitals and medical clinics. The partnership will serve in alleviating cash flow and collection pressures plaguin...

On the 24th of January 2022, Pakistan’s Ministry of Finance confirmed the issuance of USD 1 billion 7-year tenor asset-backed Islamic Notes (Sukuk Ijara) at a rate of 7.95%. The Sukuk marks Pakistan’s return to the Sukuk market in four years and is suggested to be its highest offered yield on Islamic Notes.Why it Matters? Through the procurement of expensive foreign loans, Pakistan has been building its official Foreign Exchange Reserves (FER) for some time. In December 2021, the country secured a USD 3 billion loan from Saudi Arabia from which it had used up almost USD 2 billi...

Bangladesh Export Import Company Limited (BEXIMCO) saw a considerable sum invested in its offered Green Islamic Notes (Sukuk Al Istisna) from a number of scheduled banks as an unexpected result of a special package announced by the country’s central bank, Bangladesh Bank (BB) to prop up the stock market.Why it Matters?In February 2020, BB announced the special package when the Dhaka Stock Exchange (DSE) benchmark index was staggering at 4,385 points, a seven-year low. In order to invest in the package, scheduled banks formed a special fund of BDT 5,470 crore (USD 636 million) by borr...

Government-owned venture capital firm Malaysia Debt Ventures Berhad (MDV) is planning to raise MYR 2 billion (USD 477 million) via the launch of its Sukuk/ Bond Programme by February this year, pending the Malaysian government’s green light before the official launch.Why it Matters?MDV is mandated by the Malaysian government to enable the development of the technology sector in the country. The Sukuk marks the firm’s first issuance based solely on its own corporate credit ratings, without a government guarantee. Funds raised from the Sukuk will be channelled to finance technolo...

The Governor of the State Bank of Pakistan (SBP), Dr Reza Baqir, stressed that SBP expects digital banks to encourage financial inclusion through offering affordable financial services to the unserved and underserved population. Speaking at a webinar entitled “Licensing and Regulatory Framework for Digital Banks” on the 21st of January 2022, Baqir also noted the role of the digitisation of financial services in accelerating growth and advancing the banking industry. Why it Matters?...

The Republic of Turkey (Turkey), through its Sovereign Wealth Fund (TWF), plans to inject TRY 51.5 billion (USD 3.8 billion) into three state banks to boost the banks’ core capital. The banks expected to receive the injection are T.C. Ziraat Bankasi A.S (Ziraat Bank), Turkiye Halk Bankasi A.S. (Halkbank) and Turkiye Vakiflar Bankasi T.A.O. (VakifBank), along with their Islamic banking affiliates. Why it Matte...

Bank Negara Malaysia (BNM), the Central Bank of Malaysia, has launched the Financial Sector Blueprint 2022-2026 to enhance the agility and resilience of the country’s financial sector, supporting the country's transformation in its next developmental phase. The blueprint was launched at the virtual event, MyFintech Week 2022, held on the 24th of January 2022. Why it Matters? With two decades of development, the financial industry is now set to play a greater role in ...

The Sultanate of Oman (Oman) is currently in discussions with regional banks to refinance the USD 2.2 billion loan it took out in February 2021, as it seeks to obtain better terms and increase its amount to between USD 3 billion and USD 4 billion.Why it Matters?Oman had initially sought a USD 1 billion loan, but a strong appetite from regional banks had led to an increase to over twice its initial size, reaching the amount of USD 2.2 billion. The current refinancing decision came about despite a 15-month tenor and the option for a one-year extension.DetailsThe pricing for the original loan, in...

On the 21st of January 2022, The Executive Office of the President of the Republic of Indonesia (KSP) expressed its support for the issuance of Halal certifications to 10 million micro, small, and medium enterprises (MSMEs) by the Halal Product Assurance Agency (BPJPH). Accordingly, KSP expressed its intent to coordinate with the Ministry of Cooperatives and Small and Medium Enterprises (KUKM) and the Ministry of Finance to get valid data on MSMEs.Why it Matters?In 2021, BPJPH launched the Free Halal Certification Programme (SEHATI) to support and reinforce Halal products by MSMEs. Th...