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ESG-Linked Sukuk to Continue to Lead Issuance in Core Markets: Fitch

Environmental, social and governance- (ESG) linked Sukuk are expected to remain a significant issuance theme in core Islamic finance jurisdictions, supported by increasing investor demand and awareness, as well as government policies that support sustainability and economic diversification, according to Fitch Ratings. Why it Matters?  The ESG-linked Sukuk segment, which includes green, sustainable, sustainability-linked, and transition Sukuk, has been growing as a significant portion of the global Sukuk market despite volatility brought on by the Russia-Ukraine war, ris...

IM Insights | August 11, 2022

ESG-Linked Sukuk to Continue to Lead Issuance in Core Markets: Fitch

ESG-Linked Sukuk to Continue to Lead Issuance in Core Markets: Fitch

Environmental, social and governance- (ESG) linked Sukuk are expected to remain a significant issuance theme in core Islamic finance jurisdictions, supported by increasing investor demand and awareness, as well as government policies that support sustainability and economic diversification, according to Fitch Ratings. Why it Matters?  The ESG-linked Sukuk segment, which includes green, sustainable, sustainability-linked, and transition Sukuk, has been growing as a significant portion of the global Sukuk market despite volatility brought on by the Russia-Ukraine war, ris...

IM Insights | August 11, 2022

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,...

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,...

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

How Sukuk Issuances are Benefiting from ESG Trends

The demand for Islamic bonds or Sukuk is predicted to continue growing steadily as more investors look for opportunities that are in line with Environmental, Social, and Governance (ESG) investing and that also generate reliable income. Why it Matters? According to Hanifah Hashim, Head of Fixed Income and Sukuk (Malaysia) at Franklin Templeton, one of the major contributing factors to the popularity and expansion of Sukuk, has been its impressive performance with consistently lower volatility, compared to conventional bonds. Sukuk also offers investors exposure to the fast-growi...

IM Insights | August 04, 2022

How Sukuk Issuances are Benefiting from ESG Trends

How Sukuk Issuances are Benefiting from ESG Trends

The demand for Islamic bonds or Sukuk is predicted to continue growing steadily as more investors look for opportunities that are in line with Environmental, Social, and Governance (ESG) investing and that also generate reliable income. Why it Matters? According to Hanifah Hashim, Head of Fixed Income and Sukuk (Malaysia) at Franklin Templeton, one of the major contributing factors to the popularity and expansion of Sukuk, has been its impressive performance with consistently lower volatility, compared to conventional bonds. Sukuk also offers investors exposure to the fast-growi...

IM Insights | August 04, 2022

Bank Negara Malaysia Releases a New Bancassurance and Bancatakaful Policy Document

Bank Negara Malaysia (BNM) issued a policy document on Bancassurance and Bancatakaful on the 30th of June 2022 which outlines the requirements and guidelines for Bancassurance and Bancatakaful arrangements. Why it Matters? The policy document will go into effect on the 1st of January 2023, except paragraphs 9.12 to 9.14 which will take effect right away on the date it is issued. This is applicable to licensed insurers, licensed banks and licensed investment banks under the Financial Services Act 2013, licensed Takaful operators and licensed Islamic banks under the Islamic Fi...

IM Insights | August 03, 2022

Bank Negara Malaysia Releases a New Bancassurance and Bancatakaful Policy Document

Bank Negara Malaysia Releases a New Bancassurance and Bancatakaful Policy Document

Bank Negara Malaysia (BNM) issued a policy document on Bancassurance and Bancatakaful on the 30th of June 2022 which outlines the requirements and guidelines for Bancassurance and Bancatakaful arrangements. Why it Matters? The policy document will go into effect on the 1st of January 2023, except paragraphs 9.12 to 9.14 which will take effect right away on the date it is issued. This is applicable to licensed insurers, licensed banks and licensed investment banks under the Financial Services Act 2013, licensed Takaful operators and licensed Islamic banks under the Islamic Fi...

IM Insights | August 03, 2022

Malaysia’s EXIM Bank Appoints New President/CEO

Export-Import Bank of Malaysia Berhad (EXIM Bank) has announced the appointment of Arshad Mohamed Ismail as the new President and Chief Executive Officer (CEO) of the bank, effective on the 1st of August 2022. Why it Matters? According to EXIM Bank Chairman, Datuk Azman Mahmud, Arshad brings a wealth of multijurisdictional banking and finance experience, particularly in corporate banking, debt capital markets, Islamic finance, asset management, and development finance. His most recent appointment was as the President/Group Chief Executive Officer of Bank Pembangunan Malaysia Berhad (...

IM Insights | August 03, 2022

Malaysia’s EXIM Bank Appoints New President/CEO

Malaysia’s EXIM Bank Appoints New President/CEO

Export-Import Bank of Malaysia Berhad (EXIM Bank) has announced the appointment of Arshad Mohamed Ismail as the new President and Chief Executive Officer (CEO) of the bank, effective on the 1st of August 2022. Why it Matters? According to EXIM Bank Chairman, Datuk Azman Mahmud, Arshad brings a wealth of multijurisdictional banking and finance experience, particularly in corporate banking, debt capital markets, Islamic finance, asset management, and development finance. His most recent appointment was as the President/Group Chief Executive Officer of Bank Pembangunan Malaysia Berhad (...

IM Insights | August 03, 2022