Malaysian Rating Corporation (MARC) has affirmed its AA-IS ratings on Konsortium Lebuhraya Utara-Timur (KL) Sdn’s (Kesturi) MYR 2.3 billion Sukuk Musharakah (Senior Sukuk), with a Stable Outlook. The ratings agency has also affirmed Kesturi’s MYR 180 million Redeemable Secured Junior Bonds at A- with a Stable Outlook, with the difference between the Senior Sukuk and the Junior Bonds ratings reflecting the latter’s subordination to the ranking and payment priority of the Senior Sukuk.   Kesturi, a Malaysian-based transportation in...

A report by Fitch Solutions (Fitch) titled “Country Deep-Dives, A Closer Look at Growth Prospects in the GCC States and Egypt”, anticipates Egypt’s Gross Domestic Product (GDP) growth to come in at 3.4% in 2020/21.  Fitch notes that some sectors such as retail, pharmacy, grocery, transit stations and workplaces, are showing signs of a rebound, following steep declines in May 2020.  According to Fitch, a weak outlook for Egypt’s tourism, investments as well as remittance inflows will continue to hamper the c...

Indonesia’s Consumer Price Index (CPI) remained subdued at 1.42% year-over-year (YoY) in September 2020, following a record low drop to 1.32% YoY in the previous month, according to Statistics Indonesia, locally known as Badan Pusat Statistik (BPS).  This is the third month that inflation has fallen below Bank Indonesia’s target range of 2-4% YoY for 2020, media reported, with inflation expected to remain subdue for the rest of the year as economic activity is on a downtrend following continued COVID-19 lockdown restrictions in th...

The European Bank for Reconstruction and Development (EBRD) expects Turkey’s gross domestic product (GDP) to contract 3.5% in 2020. GDP in the country expanded 4.4% year-on-year (YoY) in the first three months of 2020 (January to March 2020), and shrank 9.9% YoY in April to June 2020, according to reports.  Roger Kelly, Regional Chief Economist at EBRD, noted that Turkey has also been impacted by the on-going pandemic, having experienced a sharp drop in exports, led by a fall in external demand, citing these as key reasons for the predicted contraction in...

The Government of Malaysia is ready to support Nigeria’s Halal industry expansion, by assisting to develop Halal products based on locally produced agricultural commodities, according to Malaysian Plantation Industries and Commodities Minister Datuk Dr Mohd Khairuddin Aman Razali.  In a statement issued recently, in conjunction with Mohd Khairuddin’s keynote address at the World Halal Virtual Expo and Webinar Series 2020 held on the 30th of September 2020, the Minister stated that Nigeria’s growing Halal industry included food, fashion, logisti...

Generating funding is usually a key obstacle faced by micro small and medium enterprises (MSMEs), with around 74% of MSMEs in Indonesia still not able to access finance for purposes of business development, according to Taufik Hidayat, Director of Sharia Financial Services Executive Management of the National Islamic Finance Committee (KNEKS).  Speaking at the KNEKS Halal Industry, Financial Services Authority (OJK) and IDX Practical Series Webinar on the 30th of September 2020, Hidayat encouraged MSMEs to take advantage of the Islamic capital mar...

Malaysian Rating Corporation (MARC) has affirmed the AA-IS rating of Konsortium KAJV’s (KAJV) MYR 1.0 billion Sukuk Wakalah Programme with a Stable Outlook, according to a recent statement.  KAJV, a Malaysian water utility line construction services company, is in charge of the Kuala Terengganu Utara (KTU) water supply project for the Terengganu State Government. The KTU project entails the construction of a 120-million litres per day (MLD) water treatment plant (WTP) and a 28-MLD membrane WTP, as well as rehabilitating five existing WTPs in Kuala Terengga...

Malaysia’s OSK Holdings (OSK) is set to launch Islamic Medium Term Notes (Sukuk Murabahah) and Multi-Currency Medium Term Notes (MCMTN), to raise MYR 2 billion in funding.  According to OSK, the issuance proceeds will go towards refinancing borrowings, capital expenditure, working capital, general corporate fees, as well as to meet costs associated with these issuances.  OSK noted in a filing that the Sukuk Murabahah Programme and the MCMTN Programme, guaranteed by OSK, come with a perpetual tenure, whereas the Sukuk Murabah...

BIS analysis found that emissions reductions at green bond issuers had dissipated after two yearsProposal for firm-level rating to complement project analysis for green bond issuance to link project- and firm-level climate alignmentHundreds of billions are invested in green bonds, trillions are invested elsewhere; the next steps need to create a stronger link between green project-linked finance and other forms of responsible finance & investment An analysis by researchers at the Bank for International Settlements (BIS) found that green bond issuers did not see a reduction in thei...

Saudi Arabia’s real gross domestic product (GDP) declined by 7.0% year-over-year (YoY) in the second quarter of 2020 (2Q 2020), according to a statement released by the General Authority for Statistics (GaStat), Saudi Arabia’s official statistics agency.  The economic decline was attributed to the COVID-19 pandemic curbing global crude demand as well as measures to contain the pandemic, which reduced domestic demand, media reported. According to GaStat, the non-oil sector GDP was the hardest hit in 2Q 2020, contracting by 8.2% YoY, while the oil...