Malaysia-based investment holding company Yinson Holdings (Yinson) has lodged a filing with the Securities Commission Malaysia (SC) to establish a Sukuk Wakalah Programme of up to MYR 1 billion based on the Shariah principle of Wakalah Bi Al-Istithmar. According to a bourse filing dated 25th of October 2021, Yinson stated that the first issuance under the Sukuk Wakalah Programme would be made within 60 business days from the lodgement date of 22nd October 2021.  Why it Matters?  ...

Kuwait International Bank (KIB) reported its financial results for the nine months ended 30th of September 2021, reaching a profit attributable to shareholders of roughly KWD 3.8 million, up from KWD 568,000 in the same period in the previous year, a 567% increase. Why it Matters?  Raed Jawad Bukhamseen, Vice Chairman and Chief Executive Officer at KIB, explained that the bank's recent profitability was the consequence of its achievement in attracting many companies known for their financial and economic solvency while maintaining high creditworthiness standar...

The Government of Indonesia is planning to re-open the retail sale of state securities (SBN), through the offering of ST008 series Savings Sukuk from the 1st to the 17th of November 2021.  Why it Matters?  According to Gama Yuki, Portfolio Manager of Sucorinvest Asset Management, ST008 sales will be estimated to reach IDR 5 trillion – IDR 8 trillion, with the projected yearly yield offered to be in the 4.5% - 5% range. This projection is based on the previous ST007 issuance, which had a yield of 1.5% above the benchmark...

Perry Warjiyo, Governor of Bank Indonesia, has stated that one of the keys to expanding the Islamic economy so that it has a stronger impact on the national economy is through digitalisation. Why it Matters?  Warjiyo said that digitalisation must be developed to boost the Islamic economic and finance ecosystem, including the fashion and food industries, in order to have a greater influence. He also said that more ideas and solutions are required for Islamic economics and finance to make a greater contribution to national and worldwide economic recovery. ...

Malaysia’s Gross Domestic Product (GDP) growth forecast for 2021 has been increased from 0% to 1.5% by Fitch Solutions with the improvement in the COVID-19 situation in the country. Why it Matters? The research unit of the Fitch Group, in a brief commentary, said that the earlier forecast of 0% growth for 2021 was based on the not lifting of COVID-19 restrictions until cases fell below 4000 per day. However, the considerable decrease in daily cases with a continuing downward trend and the country partially reopening for international travel has resulted in the upward revisi...

Islami Bank Bangladesh Limited's (Islami Bank) consolidated profit has risen 64.6% year-on-year (YoY) in the third quarter of 2021 (3Q 2021) owing to higher capital market returns.  Why it Matters?  In 3Q 2021, Islami Bank recorded consolidated profit of BDT 949.6 million, versus BDT 573.8 million in the same period of the previous year. The bank earned BDT 1.0 billion through investments in shares and securities from July to September 2021, a 265% increase over the same period in the previous year. The consolidated net profit for the first nine...

Qatar International Islamic Bank (QIIB)’s Long-Term Issuer Default Rating (IDR) of 'A' has been placed on Rating Watch Negative (RWN) by Fitch Ratings (Fitch). The Short-Term IDR and the Support Rating Floor (SRF) were also placed on RWN. Additionally, Fitch affirmed QIIB's Viability Rating (VR) at 'bb+'. Ratings Rationale  As per Fitch, the RWN represents the Qatari banking sector's growing reliance on external finance, as well as the country's recent rapid asset expansion, which may have reduced the sovereig...

A EUR 100 million Murabahah financing has been approved by the International Islamic Trade Finance Corporation (ITFC) to Senegal National Power Company (SENELEC).  Why it Matters?  This financing will help meet rising electricity demand, improve power supply dependability, decrease losses and increase access to previously unserved areas. The facility will cover over 20% of SENELEC's financing needs for the acquiring of refined petroleum products, which will have a direct influence on the country's electrical energy generation, transmission...

Speaking at the Shariah Venture Capital Webinar held in Indonesia on the 21st of October 2021, Ventje Rahardjo, Executive Director of the National Islamic Finance Committee (KNEKS) said the funding of Micro, Small and Medium Enterprises (MSMEs) and startups could be channelled through the non-bank financial industry of which, an option is the Shariah venture capital scheme. Why it Matters? Explaining further, Ventje said Islamic venture capital companies (PMVS) operate in accordance with Islamic laws, on equity financing, applyin...

Zubair Mughal, Chief Executive Officer, AlHuda Centre of Islamic Banking and Economics, Pakistan said that African Development Bank (AfDB) has been requested to consider integration of Islamic Finance as an alternative source of funding in Africa’s economic agenda. Why it Matters? Mughal said Islamic finance is a novel way of financing which would spur the growth and development of the entire region through infrastructure, sustainable development, financial inclusion and insurance. Islamic finance is practiced in more than 100 countries with a total asset bas...