On the 12th of August 2021, GFH Financial Group (GFH) announced its financial results for the first half of 2021, ended 30th of June 2021 (1H 2021).  Why it Matters?  Net profit attributable to shareholders came in at USD 37.04 million during 1H 2021, an increase of 146.1% year-on-year (YoY). Growth during 1H 2021 was led by increased activities by Treasury as well as stronger results performance from GFH’s commercial banking subsidiary.  Details  ...

Bank Simpanan Nasional (BSN)’s proposed MYR 3.5 billion Islamic Medium-Term Notes Sukuk Wakalah Programme (2021/-) has been assigned an AAA/Stable rating by RAM Ratings (RAM).  Rating Rationale  As per Section 20 of the Bank Simpanan Nasional Act 1974, all deposits with BSN are guaranteed by the Government of Malaysia. These ratings are driven by the high likelihood of support from the Government, given BSN’s important public policy role and strong linkage to the Govern...

Indonesia-based polypropylene resin manufacturer Polytama Propindo has announced plans to issue securities worth IDR 700 billion, according to local media reports. The securities comprise Sukuk Ijarah II (Sukuk) valued at IDR 300 billion and Bonds II worth IDR 400 billion.  Why it Matters? According to Eban Banowo, Associate Director of Indo Premier Sekuritas, which is one of the joint lead underwriters of the transaction, proceeds of the total funds collected would be used towards working capital, granule projects, as well a...

The Government of Indonesia is anticipated to offer retail Government Securities (SBN) in the form of retail Sukuk series SR015 on the 20th of August 2021, according to Dwi Irianti Hadiningdyah, Director of Shariah Financing at the Directorate General of Budget Financing and Risk Management at Indonesia’s Ministry of Finance.  Why it Matters?  Sales of the SR015 retail Sukuk series are projected to attract high interest, based on the sales results of the Retail Savings Bond SBR010...

Fitch Solutions predicts a stagnant economy for the rest of 2021 for Malaysia and revised down its Gross Domestic Product (GDP) growth forecast for 2021 to 0% from a previous forecast of 4.9%.  Why it Matters? Despite Malaysia’s GDP expanding by 16.1% year-on-year (YoY) in the second quarter of 2021 (2Q 2021), the economy contracted 2.0% quarter-on-quarter (QoQ) in 2Q 2021. This was a result of the stringent national lockdown that was implemented till the 13th of August&...

A new UNEP FI and the PRI report outlines how asset managers and asset owners should think through their legal duties to beneficiaries and how it affects their ability to achieve positive impactThe report is the next layer building on the Freshfields report of 2005 and the Fiduciary Duty for the 21st Century project in charting out the evolving legal landscape behind responsible financePolicy makers in the markets they surveyed, as well as in emerging markets for ESG like many Islamic markets, may be called upon to give clearer guidance, such as about investor participation in...

According to a regulatory filing on Pakistan Stock Exchange on the 13th of August 2021,  Pakistan’s largest Islamic Bank, Meezan Bank, intends to issue PKR 10 billion via Sukuk by way of public offering or private placement.  Why it Matters?  The proceeds of this issuance are to be counted towards the Tier-II capital of Meezan Bank. The issuance also includes a PKR 3 billion green-shoe option, which grants the bank the right to raise more funds than originally planned. Details   Meezan Bank is also exercising...

Despite being in the middle of the COVID-19 pandemic, Bank Syariah Indonesia (BSI) has continued to distribute microfinance in 2021. According to Hery Gunardi, President Director at BSI, microfinance saw a 12.88% year-on-year (YoY) increase to IDR 15.1 trillion as of June 2021.  Why it Matters?  BSI projects that the rate of microfinance growth until the end of 2021 will be at 13% YoY. This will be driven by several micro sectors that have shown growth in 2021 across the trade sector, food a...

Fitch Ratings (Fitch) has affirmed the rating of Qatar-based Qatar International Islamic Bank (QIIB) at ‘A’ with a Stable Outlook. This rating affirmation is led by QIIB’s results and performance during the first half of 2021 (1H 2021). Rating Rationale  According to a Fitch report, QIIB’s rating is driven by the assured probability of government support if and when required, in addition to the government’s solid capacity and solvency that makes it eligible to provide needed support.&nb...

The Islamic Development Bank (IsDB) Group is planning to hold its Annual Meetings for the Board of Governors from the 31st of August to the 4th of September 2021 in Tashkent, Uzbekistan to discuss issues pertaining to the development and other institutional matters of its member countries.  Why it Matters? Scheduled to be held in the backdrop of the COVID-19 pandemic that has adversely affected the global economy, the meeting will focus on crucial aspects like the challenges faced by the member states in handli...