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Credit Ratings for Sovereign Wealth Funds

It is not easy for any sovereign wealth fund (SWF) to obtain a debut credit rating, especially since there is an effort that ranges from 6 to 8 months of continuous work with credit rating agencies to know the outcome of the credit rating.I have dealt with credit rating agencies and do realise how strict these entities are when it comes to obtaining the most accurate information from the party that wishes to obtain a rating.These ratings do not compliment the companies that wish to be rated. This is to preserve the rights of investors who will invest in the bonds/Sukuk of the issuers, ba...

Mohammed KHNIFER | August 10, 2022

Credit Ratings for Sovereign Wealth Funds

Credit Ratings for Sovereign Wealth Funds

It is not easy for any sovereign wealth fund (SWF) to obtain a debut credit rating, especially since there is an effort that ranges from 6 to 8 months of continuous work with credit rating agencies to know the outcome of the credit rating.I have dealt with credit rating agencies and do realise how strict these entities are when it comes to obtaining the most accurate information from the party that wishes to obtain a rating.These ratings do not compliment the companies that wish to be rated. This is to preserve the rights of investors who will invest in the bonds/Sukuk of the issuers, ba...

Mohammed KHNIFER | August 10, 2022

The Patchy Road Towards Net-Zero

It is more complex than it first appears to tell whether a financial institution is aligned with a long-term emissions trajectory consistent with Net Zero. Financed emissions are important, but using institution-level data (where available) as a target without considering the economy as a whole could lead to ‘paper decarbonisation’ that results in the broader economy falling out of alignment unless targets are set considering the full-economy view. Last month, Finance Watch published a report questioning whether reaching Net Zero goals was possible by just focusing...

Blake Goud | August 10, 2022

The Patchy Road Towards Net-Zero

The Patchy Road Towards Net-Zero

It is more complex than it first appears to tell whether a financial institution is aligned with a long-term emissions trajectory consistent with Net Zero. Financed emissions are important, but using institution-level data (where available) as a target without considering the economy as a whole could lead to ‘paper decarbonisation’ that results in the broader economy falling out of alignment unless targets are set considering the full-economy view. Last month, Finance Watch published a report questioning whether reaching Net Zero goals was possible by just focusing...

Blake Goud | August 10, 2022

Indonesia Raises IDR 10.64 Trillion from Latest State Sukuk Auction

The government of Indonesia has successfully raised IDR 10.64 trillion (USD 716.35 million) from a State Sukuk or Government Shariah Securities (SBSN) auction held on the 9th of August 2022, higher than an IDR 7 trillion (USD 470.5 million) indicative target, according to the Ministry of Finance. Why it Matters? Total incoming bids for the auction stood at IDR 30.85 trillion (USD 2.07 billion), higher than the IDR 10.77 trillion (USD 723.9 million) in bids received at the previous auction held on the 26th of July 2022, while the Sukuk carried lower weighted average yields. ...

IM Insights | August 10, 2022

Indonesia Raises IDR 10.64 Trillion from Latest State Sukuk Auction

Indonesia Raises IDR 10.64 Trillion from Latest State Sukuk Auction

The government of Indonesia has successfully raised IDR 10.64 trillion (USD 716.35 million) from a State Sukuk or Government Shariah Securities (SBSN) auction held on the 9th of August 2022, higher than an IDR 7 trillion (USD 470.5 million) indicative target, according to the Ministry of Finance. Why it Matters? Total incoming bids for the auction stood at IDR 30.85 trillion (USD 2.07 billion), higher than the IDR 10.77 trillion (USD 723.9 million) in bids received at the previous auction held on the 26th of July 2022, while the Sukuk carried lower weighted average yields. ...

IM Insights | August 10, 2022

Bank Islam Malaysia and UK Islamic Fintech Kestrl Collaborate for the Launch of New Digital Bank 'Be U'

Bank Islam Malaysia Berhad (Bank Islam) and United Kingdom-based Islamic Fintech Kestrl have entered a strategic partnership for the creation and deployment of personal financial management (PFM) features for Bank Islam’s newly launched digital bank ‘Be U’, as per a press release issued on the 5th of August 2022. Why it Matters? Through the collaboration, which marks the first formal partnership between an Islamic Fintech and an Islamic Bank globally, Bank Islam aims to channel Kestrl’s PFM tool and the Be U app to market its Islamic banking products and&n...

IM Insights | August 09, 2022

Bank Islam Malaysia and UK Islamic Fintech Kestrl Collaborate for the Launch of New Digital Bank 'Be U'

Bank Islam Malaysia and UK Islamic Fintech Kestrl Collaborate for the Launch of New Digital Bank 'Be U'

Bank Islam Malaysia Berhad (Bank Islam) and United Kingdom-based Islamic Fintech Kestrl have entered a strategic partnership for the creation and deployment of personal financial management (PFM) features for Bank Islam’s newly launched digital bank ‘Be U’, as per a press release issued on the 5th of August 2022. Why it Matters? Through the collaboration, which marks the first formal partnership between an Islamic Fintech and an Islamic Bank globally, Bank Islam aims to channel Kestrl’s PFM tool and the Be U app to market its Islamic banking products and&n...

IM Insights | August 09, 2022

Malaysia’s Cagamas Prices MYR 525 Million Worth of Sukuk 

The National Mortgage Corporation of Malaysia, Cagamas Berhad (Cagamas), has announced the successful pricing of Sukuk worth MYR 525 million (USD 117.7 million), as per a statement made on the 8th of August 2022.  Why it Matters?  The issuance comprised MYR 25 million (USD 5.6 million) 1-year Islamic Medium-Term Notes (IMTNs), MYR 115 million (USD 25.8 million) 2-year IMTNs, MYR 100 million (USD 22.4 million) 3-year IMTNs, and MYR 285 million (USD 63.9 million) 2-year ASEAN Social SRI Sukuk (Social SRI Sukuk). Proceeds from the offering will go toward paying for the acq...

IM Insights | August 08, 2022

Malaysia’s Cagamas Prices MYR 525 Million Worth of Sukuk 

Malaysia’s Cagamas Prices MYR 525 Million Worth of Sukuk 

The National Mortgage Corporation of Malaysia, Cagamas Berhad (Cagamas), has announced the successful pricing of Sukuk worth MYR 525 million (USD 117.7 million), as per a statement made on the 8th of August 2022.  Why it Matters?  The issuance comprised MYR 25 million (USD 5.6 million) 1-year Islamic Medium-Term Notes (IMTNs), MYR 115 million (USD 25.8 million) 2-year IMTNs, MYR 100 million (USD 22.4 million) 3-year IMTNs, and MYR 285 million (USD 63.9 million) 2-year ASEAN Social SRI Sukuk (Social SRI Sukuk). Proceeds from the offering will go toward paying for the acq...

IM Insights | August 08, 2022

SECP Reveals Guidelines for Shariah-Compliant Investments Via PSX

Guidelines for Shariah-Compliant Investments on the Pakistan Stock Exchange (PSX) are issued by the Securities and Exchange Commission of Pakistan (SECP) in accordance with section 40B of the Securities and Exchange Commission of Pakistan Act, 1997 with the purpose to assist investors dealing in Shariah-compliant investments through the PSX. Why it Matters? According to SECP, a Shariah-Compliant Index (SCI) is meant to serve as a benchmark for assessing the performance of the Shariah-compliant segment of the market. An SCI is designed to boost investors' confidence and involvemen...

IM Insights | August 05, 2022

SECP Reveals Guidelines for Shariah-Compliant Investments Via PSX

SECP Reveals Guidelines for Shariah-Compliant Investments Via PSX

Guidelines for Shariah-Compliant Investments on the Pakistan Stock Exchange (PSX) are issued by the Securities and Exchange Commission of Pakistan (SECP) in accordance with section 40B of the Securities and Exchange Commission of Pakistan Act, 1997 with the purpose to assist investors dealing in Shariah-compliant investments through the PSX. Why it Matters? According to SECP, a Shariah-Compliant Index (SCI) is meant to serve as a benchmark for assessing the performance of the Shariah-compliant segment of the market. An SCI is designed to boost investors' confidence and involvemen...

IM Insights | August 05, 2022

Islamic Finance and Islamic Business Practices in Preventing Economic Crises

Islam permits only for legitimate business as Quran tells us, "O you who believe: Eat not up your property among yourselves unjustly except it may be trade among you by mutual consent"(part no 5, surah no 4 verse no 29.)Islamic Principles for Business Islam has given us a proper mechanism and guidelines for living and doing fair business. We must have strong belief and faith that every guidance has underlying moral values and benefits for us. The Shariah framework to conduct business encourages us to comply with fair and ethical practices. These Islamic teachings are not only for Muslims...

Dr Muhammad Ali | August 03, 2022

Islamic Finance and Islamic Business Practices in Preventing Economic Crises

Islamic Finance and Islamic Business Practices in Preventing Economic Crises

Islam permits only for legitimate business as Quran tells us, "O you who believe: Eat not up your property among yourselves unjustly except it may be trade among you by mutual consent"(part no 5, surah no 4 verse no 29.)Islamic Principles for Business Islam has given us a proper mechanism and guidelines for living and doing fair business. We must have strong belief and faith that every guidance has underlying moral values and benefits for us. The Shariah framework to conduct business encourages us to comply with fair and ethical practices. These Islamic teachings are not only for Muslims...

Dr Muhammad Ali | August 03, 2022

Bahri Fully Redeems SAR 3.9 Billion Sukuk Due on July 30

Bahri, previously known as the National Shipping Company of Saudi Arabia (NSCSA), announced the full redemption of its sukuk worth SAR 3.9 billion, due on July 30, 2022, according to a bourse filing.  Why it Matters?  The payment process was funded through sukuk refinancing with the same amount and whose completion was announced on July 6.  Details  This sukuk transcation will likely reflect on Bahri’s financials for Q3 2022 The sukuk is SAR-denominated and the transcation was made via private placement offer The returns will...

IM Insights | August 02, 2022

Bahri Fully Redeems SAR 3.9 Billion Sukuk Due on July 30

Bahri Fully Redeems SAR 3.9 Billion Sukuk Due on July 30

Bahri, previously known as the National Shipping Company of Saudi Arabia (NSCSA), announced the full redemption of its sukuk worth SAR 3.9 billion, due on July 30, 2022, according to a bourse filing.  Why it Matters?  The payment process was funded through sukuk refinancing with the same amount and whose completion was announced on July 6.  Details  This sukuk transcation will likely reflect on Bahri’s financials for Q3 2022 The sukuk is SAR-denominated and the transcation was made via private placement offer The returns will...

IM Insights | August 02, 2022

ESG has outgrown a single label – but we’re stuck with it

Increasing concerns about greenwashing within ESG have led to suggestions that the term should scrapped or have its definition significantly narrowed. However, the world is complex, and aspirations around covering environmental, social and governance issues won’t benefit from ignoring that complexity, leading rather to short-term gain but long-term pain. By Blake Goud, CEO, RFI Foundation ESG is facing a crisis of confidence driven by marketeers ‘hijacking’ it and conflating ESG & impact.The backlash against over-promising & under-delivering has provoked a...

Blake Goud | August 02, 2022

ESG has outgrown a single label – but we’re stuck with it

ESG has outgrown a single label – but we’re stuck with it

Increasing concerns about greenwashing within ESG have led to suggestions that the term should scrapped or have its definition significantly narrowed. However, the world is complex, and aspirations around covering environmental, social and governance issues won’t benefit from ignoring that complexity, leading rather to short-term gain but long-term pain. By Blake Goud, CEO, RFI Foundation ESG is facing a crisis of confidence driven by marketeers ‘hijacking’ it and conflating ESG & impact.The backlash against over-promising & under-delivering has provoked a...

Blake Goud | August 02, 2022

Islamic Economy Institutional Structure

The institutional structure of the ideal Islamic economy rests on rules governing property, production, exchange, trust, markets, and distribution and redistribution, among others.Property rightsAll property ultimately belongs to the Creator, who has made all created resources available for humans, to empower them to perform what their Creator expects of them. Individuals are free to acquire and accumulate property as long as it does not violate the rights and the interests of the society and individuals. Islam prohibits the concentration of wealth and imposes limits on consumpt...

IM Insights | August 01, 2022

Islamic Economy Institutional Structure

Islamic Economy Institutional Structure

The institutional structure of the ideal Islamic economy rests on rules governing property, production, exchange, trust, markets, and distribution and redistribution, among others.Property rightsAll property ultimately belongs to the Creator, who has made all created resources available for humans, to empower them to perform what their Creator expects of them. Individuals are free to acquire and accumulate property as long as it does not violate the rights and the interests of the society and individuals. Islam prohibits the concentration of wealth and imposes limits on consumpt...

IM Insights | August 01, 2022