As ESG has become mainstream, it has encountered a backlash for not delivering on a range of outcomes promised across responsible financeEven as this backlash against ESG greenwashing grows, the institutional foundations for a better future of responsible finance are being builtESG has become too complex to expect it to achieve every desired impact; each approach should be evaluated based on its own intended outcomes Much ink has been spilled on critiques of ESG investing. Some question whether or not it creates an impact. Others how to properly contextualize issuers wh...

Bahrain-based investment bank, GFH Financial Group (GFH), is planning to purchase 100% of Khaleeji Commercial Bank (KHCB) to enhance its portfolio and widen its operations. This was divulged in a regulatory filing on the 17th of October 2021, where GFH submitted an offer to the board of KHCB to acquire 21.03% of its shares GFH currently does not own. Why it Matters?  It was stated that the acquisition of KHCB would provide GFH with access to a wider segment of clients and allow for a larger market share. KHCB's commercial registration and vocati...

Qatar Islamic Bank (QIB) announced its results for the nine months ended 30 September 2021 (9M 2021), with net profit attributable to shareholders having reached QAR 2.5 billion, which is a growth of 13.9% year-on-year (YoY). Why it Matters?  Following an upgrade to QIB’s stand-alone credit profile earlier in 2021, Standard & Poor’s (S&P) affirmed its credit rating at A- in October 2021. In May 2021, Moody’s Investors Service affirmed QIB’s long-term deposit rating at A1. Details   For 9M 2021, QIB’s to...

Bank Syariah Indonesia (BSI) has entered a collaboration through a Memorandum of Understanding (MOU) with two Regional Development Banks (BPD) in the country, to facilitate the expansion of Shariah banking in the region. The MOU relates to business and knowledge transfer in respect of Shariah banking services and products. The two BPDs that signed the MOU are, BPD Riau Kepri and Bank DKI Shariah Business Unit. Why it Matters? Ade Cahyo Nugroho, Director of Finance and Strategy of BSI stated, at a press conference held some time ago&nb...

The Government of Indonesia is expected to auction off State Sharia Securities (SBSN) on the 19th of October 2021. According to a press release, the SBSN series to be auctioned are the State Treasury Letter – Sharia (SPN-S) and Project Based Sukuk (PBS) series, with an indicative target of IDR 5 trillion being set.Why it Matters? The Government conducts the State Sukuk auction to obtain fresh capital to meet some of its financing targets as per the 2021 State Budget. The State Sukuk auction...

Golden Gate Ventures, a Southeast Asia-focused venture capital (VC) firm based in Singapore says that the region is set to produce an abundance of fintech innovations within the next decade. Why it Matters? A report issued by Golden Gate Ventures says that as Southeast Asia has a significant unbanked population of 290 million people, there is a high potential for fintech players in the region. With digital wallet penetration in the Southeast Asian countries being much less than in China and the UK, there is ample space for growth in these countries in the sector....

On the 16th of October 2021, Sharjah Islamic Bank (SIB) said that its nine-month (9M) net profit climbed 29.6% to AED 458 million in 2021. This is versus AED 353.4 million recorded in the same period in 2020. Why it Matters? SIB's net profit increase indicates solid growth across all its business segments. The lender is continuing to diversify its financing portfolio across multiple economic sectors and maintains a lending policy that considers all events related to the COVID-19 pandemic and its...

The Islamic finance industry in Indonesia saw positive growth even during the COVID-19 pandemic. This was most evident by the increase in third-party funds and financing channelled to the public.  Why it Matters?  Nyimas Rohmah, Director of Regulation and Licensing of Shariah Banking at the Financial Services Authority of Indonesia (OJK), remarked that the assets of the Islamic finance industry had grown to IDR 2,000 trillion as of July 2021, excluding the Islamic stock industry. This takes the market...

Saudi-based Islamic Development Bank (IsDB) has sold USD 1.7 billion worth of five-year Sukuk at 25 basis points (bps) over mid-swaps on the 13th of October 2021, according to a bank document.  Why it Matters? IsDB was expecting to raise USD 1.5 billion through the Sukuk sale, according to an earlier document released from one of the banks involved in the deal. The Sukuk drew more than USD 2.4 billion in demand, and the spread was tightened from the initial price guidance on the 12th&nb...

According to Fitch Ratings (Fitch), global Sukuk momentum is projected to persist over the medium term, owing to robust investor interest, funding diversification and refinancing needs. Bashar Al-Natoor, Global Head of Islamic Finance at Fitch, noted that there would, however, be headwinds.  Why it Matters?  Al-Natoor remarked that the supply-demand imbalance of Sukuk would continue to be a factor for growth but that this would not be without challenges. Additional Accounting and Auditing Organisation for Islamic Financial Institu...