The Government of Indonesia has raised IDR 13.15 trillion from its biweekly auction of State Shariah Securities (SBSN), also known as State Sukuk, held on the 27th of July 2021, according to a statement issued by the Directorate General of Budget Financing and Risk Management (DJPPR), Ministry of Finance. The amount raised exceeded the indicative target of IDR 12 trillion, and was higher than that awarded from the previous auction, which raised IDR 12.5 trillion. Total incoming bids of the latest auction amounted to IDR 56.693 trillion, which exceeded the previous auct...

Indonesia’s National Islamic Finance Committee (KNEKS) has outlined several key steps that must be implemented in parallel to develop Islamic banking in the country. These include increasing demand and supply, as well as developing infrastructure, according to local media reports.  Why it Matters?  According to Taufik Hidayat, Director of Shariah Financial Services of KNEKS, increasing supply encompasses strengthening the capabilities and capital of Islamic banks. This would impact the pricing or margins of Islamic banks, which are highly...

Given the current state of the global economy amidst the pandemic, the concepts of risk and return sharing in Islamic finance can boost business and economic revival, according to Hassan Usman, Managing Director of Jaiz Bank (Nigeria) and President of the Non-Interest Financial Institution Associations of Nigeria (NIFIAN).  Why it Matters?  Islamic finance in Nigeria is growing in double-digits and can serve as an accelerator or catalyst to the development of Nigeria’s financial economy.&nb...

Tan Sri Muhyiddin Yassin, Prime Minister of Malaysia stated that the Government of Malaysia will announce the continuation of the country’s National Recovery Plan (PPN) and adjust other economic measures at the tabling of the 12th Malaysia Plan (12MP) and the Budget 2022.  Why it Matters? The budget is set to focus on Recovery, Resilience and Reform highlighting ways to revive the sectors that have been badly hit due to the spread of COVID-19, improve the capacity of the public healthcare system and ...

Indonesia-based finance company Adira Dinamika Multi Finance (Adira Finance) has listed securities worth IDR 1.5 trillion, including a two-tranche Sustainable Sukuk Mudarabah IV Phase II 2021 amounting to IDR 200 billion, alongside conventional bonds on the Indonesia Stock Exchange (IDX), effective from the 26th of July 2021.  Why it Matters? According to an IDX information disclosure, the Sukuk Mudarabah are offered in two series consisting of Series A, with a nominal value of IDR 134 billion a...

Bank Negara’s announcements relate to climate stress tests, transition to mandatory climate disclosures, and possible Pillar 2 capital / supervisory changesThe acceleration of regulatory action is easier to understand working backwards from 2030 Paris targets to understand the inevitable policy response on climate that is comingRFI research on climate risk in Malaysia called on financial institutions to undertake their own bottom-up, sectoral and issue-based analysis Some of the most momentous announcements from Malaysia’s Joint Committee on Climate Change (JC3) confe...

Islamic Finance Guru (IFG), a United Kingdom (UK)-based Islamic finance platform, has closed an investment round that raised GBP 3 million, led by fintech specialist, Outward VC with the participation of B&Y Venture Partners.   Why it Matters? Through this investment, IFG expects to expand its team and invest in products and technology. IFG stated that although its ambitions are global, it first intends to focus on the Muslim community in the UK, which it claims is the poorest faith population in the country and...

With a target issuance of MYR 500 million, Small Medium Enterprise Development Bank Malaysia (SME Bank)’s maiden sustainability Sukuk Wakalah, was oversubscribed by 3.56 times (bid-to-cover) under its book building exercise, recording a final order of MYR 1.78 billion. The Sukuk Wakalah programme is made up of an Islamic medium term notes programme valued at up to MYR 3 billion; this includes the sustainability Sukuk and Islamic commercial papers programme of up to MYR 1 billion. Why it Matters? Aria Putera Ismail, ...

The Indonesian Shariah Insurance Association (AASI) predicts that the country’s Shariah insurance market share (by assets) can grow to 20-25% by 2030 compared to conventional insurance, if the overall Islamic insurance industry’s assets grow by eight fold, given a doubling of the conventional industry. At present, market share of Indonesia’s Islamic insurance industry amounts to 5% (or IDR 40 trillion). In addition, factors like such as g...

The Securities and Exchange Commission (SEC) Nigeria is committed to support the development of the country's non-interest capital market. Abdulkadir Abbas, Head of Department, Securities and Investment Services SEC Nigeria, discussed the SEC’s 10-year Capital Market Master Plan, which aims to promote non-interest capital market products, with a target to achieve 25% of market capitalisation by 2025. Why it Matters?   Nigeria is estimated as the biggest economy in Africa with gross domestic product of over USD 400...