The Pakistan Mortgage Refinance Company (PMRC) has announced the closing of PKR 1 billion worth of privately-placed Sukuk in collaboration with HBL Islamic Banking to promote Pakistan’s Islamic housing finance, according to local media reports.  Why it Matters?  The latest Sukuk issuance will look to make Shariah-compliant housing finance more affordable and accessible to the public in Pakistan. According to Mudassir H Khan, Managing Director and Chief Executive Officer of PMRC, t...

Three requests for Sukuk offerings are anticipated to be submitted to Egypt’s Financial Regulatory Authority (FRA) after the Eid Al-Adha holidays, out of a total of five companies that are studying such offerings, according to official sources, as reported by local media. Procedures for the three offerings are expected to be completed during the fourth quarter (Q4) of 2021.  Why it Matters?  Although various capital market authorities in Egypt expected a momentum of Sukuk offerings in 2021, no offerings have been m...

Owing to the presence of technology, financing distribution in Indonesia grew at a rapid pace by up to 50% in 2020 compared to 2019, assisted by the COVID-19 pandemic, according to the Indonesian Sharia Fintech Association (AFSI). The presence of technology is regarded as a catalyst for Indonesia’s Shariah financial services ecosystem, in collaboration with millennials and Generation Z segments of the population, thus realising the country’s aims of becoming a global leader in the Halal economy.&nb...

Regulatory changes being implemented by the Higher Shariah Authority (HSA), which is housed under the Central Bank of the United Arab Emirates (UAE), are anticipated to have an uncertain impact on Islamic banks in the country, according to Fitch Ratings. These regulations are being made to comply with the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI)’s Shariah standards, and impact several aspects of Islamic banks’ day-to-day operations, including issuing, arranging an...

Fitch Ratings (Fitch) has assigned a final rating of ‘A’ to Saudi Arabian Oil Company (Saudi Aramco)’s trust certificate issuance programme and its inaugural USD 6 billion Sukuk issuance, issued through the trustee - SA Global Sukuk. The ratings for the programme and instruments are consistent with Saudi Aramco's Long-Term Issuer Default Rating (IDR) and senior unsecured rating of ‘A’.  Rating Rationale  Fitch has given no weight to any underlying assets or collateral provided, believing that the trustee&r...

The Qatar Financial Markets Authority (QFMA) has approved the merger of Masraf Al Rayan and Al Khaliji Commercial Bank.  Why it Matters?  This merger of these two banks will create one of the largest Shariah-compliant groups in the Middle East. The merger will result in the formation of a stronger bank with a robust financial position and high liquidity, a diverse range of banking activities and customer portfolios, unique products, and a stronger foundation for financing development initiatives in accordance w...

Dubai Islamic Bank (DIB) announced that it has successfully priced a USD 1 billion five-year Sukuk issuance on the 16th of June 2021. The annual profit rate attached to the Sukuk is 1.959%. Why it Matters? The Sukuk was oversubscribed by 3 times, with the success of this issuance coming despite the large number of new issuances in the market. The transaction represents the lowest pricing compared to any of DIB’s previous Sukuk issuances. According to Dr Adnan Chilwan, Group&n...

Three Sukuk tranches that amount to a total of USD 3 billion have been listed on Nasdaq Dubai by the Government of Indonesia. Why it Matters?  This listing brings the Indonesian Government’s total value of listed Sukuk to USD 19.75 billion. Chief Executive Officer of Nasdaq Dubai and Deputy Chief Executive Officer of Dubai Financial Market, Hamed Ali, said that the rising number of international issuers is a clear sign of Dubai's active involvement in promoting the Islamic economy and Shariah-compliant financial markets and of it supp...

Malaysia recorded the largest Sukuk issuances globally in the first quarter of 2021 (1Q 2021) at USD 17.9 billion, according to RAM Ratings’ Sukuk Snapshot 2021. Malaysian issuances accounted for 42.4% of global Sukuk issuances and were up 39.8% year-on-year (YoY).  Why it Matters? Aside from dominating the market, Malaysia out-performed the global growth in issuances, which came in at 21.2% YoY in 1Q 2021, despite the economic challenges stemming from the COVID-19 pandemic. With sovereigns driving t...

GFH Financial Group (GFH)’s Long- and Short-Term Issuer Default Ratings (IDR) have been affirmed at ‘B’ by Fitch Ratings (Fitch). The outlook on the Long-Term IDR is Stable. Fitch also affirmed the ‘B’/’RR4’ senior unsecured long-term rating of the USD 500 million 2025 certificates issued via GFH Sukuk Company Limited (GFH SCL). GFH SCL was established for the sole purpose of issuing Sukuk. Rating Rationale  GFH’s IDRs mainly reflect its investment portfolio’s real-estate concentrations, reliance on transactional gai...