The local currency Sukuk market in Malaysia is expected to stay strong in the second half of 2021 (2H 2021), according to RAM Ratings (RAM), despite a challenging first quarter (1Q 2021) and downside risk. Siew Suet Ming, Chief Rating Officer at RAM Rating Services, stated that given the attractive low yields, firms will be encouraged to bring funding plans forward, before interest rates start to normalise along with policy rates in 2022.  Why it Matters?  Chief Executive Officer and Executive Director of Bond...

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Having obtained approval from the Bangladesh Securities and Exchange Commission (BSEC), the Bangladesh Export Import Company (Beximco) has published the information memorandum for Bangladesh’s green Sukuk worth BDT 30 billion. Why it Matters? According to the memorandum, the five-year asset-backed Green Sukuk is convertible, redeemable and participative. The company will allocate 50% of the Sukuk issuance via private placement, 25% will be offered to existing shareholders, with the remainder being offered for sale ...

Pakistan International Airlines (PIA) has raised PKR 5.7 billion on the 15th of July 2021, with the conclusion of the book building process for PIA Sukuk-I, according to local media reports. Although the book building process was conducted for an issue size of PKR 20 billion, including a greenshoe option of PKR 5 billion, due to underwhelming response from investors, the Sukuk issuance was limited to PKR 5.7 billion by Pakistan’s Ministry of Finance and PIA.   Why it Matters?  The government-backed issuance is Pakistan’s first...

The Federal Government of Nigeria, and its partners in the private sector, under Family Homes Funds Limited (FHFL), have completed the issuance of a seven-year NGN 10 billion corporate Sukuk, which will go towards financing the development of affordable housing in the country.  Why it Matters?  The Series I Ijarah Lease Sukuk which is expected to mature in 2028, comes under FHFL’s NGN 30 billion Sukuk Issuance Programme which targets affordable housing development. The Sukuk is the first-ever Securities and Exchange Commission (SEC)-registered corporate...

Indonesia is currently facing one of the worst COVID-19 outbreaks, with the more severe Delta variant causing new infections to surpass 50,000 daily with 1,000 daily deaths over the past few days. The Government of Indonesia has extended ongoing movement restrictions to the 25th of July 2021 (these restrictions which started on the 3rd of July 2021, were initially set to end on the 20th of July 2021). Moody’s currently rates Indonesia’s debt at Baa2 (which is only one notch higher than its lowest i...

Malaysia Digital Economy Corporation (MDEC), the country’s core digital transformation agency, has revealed a five-year plan spanning 2021 to 2025 to secure high-quality digital investments called the Digital Investments Future5 (DIF5) Strategy. Why it Matters?  The DIF5 Strategy aims to unlock new growth drivers for Malaysia’s digital economy and involves attracting MYR 50 billion (around USD 11.84 billion) in digital investments, as well as attracting 50 Fortune 500 tech companies to invest and expand in Malaysi...

Arabian Centres completed the issuance of USD 225 million, USD-denominated, Shariah-compliant Sukuk (Sukuk II Re-Tap), on the 15th of July 2021.This was in preparation for allocating the Sukuk issued on 28th of July 2021.  Why it Matters?  This Sukuk was issued to maintain and enhance the company’s financial position by repaying a large portion of its existing debts and freeing up several of its assets, as part of a strategy to release all of the company’s mortgaged ass...

Visa, the US-based global digital finance service provider has launched a new portfolio of Shariah-compliant services in Bangladesh. Accordingly, Visa will provide debit and credit cards that comprise exclusive benefits to Islamic banking cardholders in the categories of dining, travel and shopping. Shariah-compliant banks in Bangladesh will be able to issue cards compliant with Islamic finance, with a range of tailor-made benefits through all available Visa card variants, Classic, Gol...

The Government of Indonesia has issued Shariah sovereign bonds worth IDR 1,810.02 trillion (USD 124.49 billion) between 2008 and June 2021, according to Sri Mulyani Indrawati, Indonesia’s Finance Minister. Why it Matters?  Shariah sovereign bonds continue to develop and now serve an increasingly important part in funding government budgets, contributing IDR 360 trillion in 2020 to state budget financing, up from IDR 4.7 trillion in 2008, during the early days of their issuance. Each year, Shariah sov...