Tropicana Corporation (Tropicana), a Malaysia-based residential property management company, has announced the issuance of the final tranche of Sukuk Wakalah of MYR 110 million in nominal value, as part of its MYR 1.5 billion Sukuk Wakalah Programme, according to a bourse filing released on the 8th of June 2021.  Why it Matters?  The Sukuk tranche marks the ninth and final issuance under Tropicana’s MYR 1.5 billion Sukuk Wakalah Programme. Proceeds from the issuance will be used by the company t...

Continuing its diversification of funding sources in order to support its growth, Acwa Power has raised SAR 2.8 billion via the issuance of Sukuk. The seven-year senior, unsecured, floating rate instrument follows a Mudarabah-Murabahah structure.  Why it Matters?  The issuance was oversubscribed by 1.8x. President and Chief Executive Officer of Acwa Power, Paddy Padmanathan, noted that the success of the issuance demonstrates the faith of the wider market in Saudi Arabia’s bond market. This is also Acwa Power's first tr...

On the 14th of June 2021, the State Bank of Pakistan (SBP) issued instructions on Shariah non-compliance risk (SNCR) management.  Why it Matters?  According to a statement by the bank, the aim of this is to enhance the stability and soundness of Islamic banking, given that the foundation of Islamic banking lies in compliance with the respective Shariah principles and rules across all business activities and operations. SNCR is a unique risk faced by Islamic banking institutions (IBIs) and should be mitigated in a proactive manner. It also noted that...

The Government of Indonesia has raised and met its indicative target of IDR 10 trillion from its biweekly auction of State Shariah Securities (SBSN), also known as State Sukuk, held on the 15th of June 2021, according to a statement issued by the Directorate General of Budget Financing and Risk Management (DJPPR), Ministry of Finance. Total incoming bids amounted to IDR 46.675 trillion, which was the largest incoming bid amount received so far in 2021 under the State Sukuk auction, and higher than that received from the previous auction, which came...

Bank Muamalat Malaysia’s (Bank Muamalat) MYR 500 million Subordinated Sukuk Murabahah (Sukuk), which will be issued on the 15th of June 2021, has received a positive response from diversified and a wide range of investors during a recent book-building exercise.  Why it Matters? The Subordinated Sukuk Murabahah is the second issuance under Bank Muamalat’s MYR 1 billion Subordinated Sukuk Murabahah Programme (2016/2036), which qualifies as Tier-2 capital under Bank Negara Malaysia’s Policy Document on Capital Adequacy Framework for Is...

The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, has signed a new five-year framework agreement in favour of The Gambia's Government, with a goal of providing up to USD 50 million annually. Why it Matters?  This five-year framework agreement will pave the way for further cooperation with The Gambia’s Government across key economic sectors, whilst fostering heightened collaboration with the country’s upcoming private sector to drive Small and Medium Enterprise...

Official data from the General Authority for Statistics revealed that Saudi Arabia’s gross domestic product (GDP) contracted 3% compared to the prior-year period in the first quarter of 2021 (1Q 2021). This has been mainly attributed to the 11.7% shrinking in the oil sector during 1Q21, however, the non-oil sector grew 2.9% and the private sector was up 4.4%.  Why it Matters?  Even before the start of COVID-19 a year ago, low oil output had harmed Gulf economies, as diminished hydrocarbon revenues made it more difficult for governments to balan...

A second tranche issuance worth BDT 40 billion in Sukuk was held at Bangladesh Bank (BB) on the 10th of June 2021, under the existing BDT 80 billion Sukuk programme.Why it Matters?  The Finance Ministry of Bangladesh signed a Memorandum of Understanding (MoU) on the 22nd of December 2020 to raise BDT 80 billion worth of Sukuk for the implementation of a safe water supply project. A designated (by BB) special-purpose vehicle (SPV) allocated the bond certificates, with priority given to Shariah-based Islamic banks, non-banking financial...

Following participation worth IDR 1 billion, from 50 State Civil Status Apparatus (ASN) wakifs in Indonesia’s Cash Waqf Linked Sukuk Retail SWR002 Series (SWR002 Series) offered by the Ministry of Finance (MoF), Bank Syariah Indonesia (BSI) has collaborated with the MoF to conduct routine socialisation and education sessions to public and private agencies.  Why it Matters? BSI aims at increasing the literacy of cash Waqf amongst the ASN category. As part of its socialisation efforts, B...

Islamic banks in Qatar accounted for 86% of the QAR 528 billion Islamic finance assets recorded in the industry in 2020, with the assets of Islamic banks up 8.4% year-on-year. Islamic banks in Qatar also issued QAR 8 billion worth of Sukuk in 2020. Governor of the Central Bank Of Qatar, HE Sheikh Abdulla bin Saoud al-Thani highlighted that Islamic finance in Qatar continues to develop through regulations and policies that are being updated to enable the sector’s competitiveness, regionally as well as internationally. Why it Matters...