Vice President of Indonesia, Ma’ruf Amin, identified four ways to encourage the development of the Shariah economy and Shariah finance in the country. As mentioned in an official statement made on the 9th of June 2021, the four initiatives include: first – strengthening regulations within the Shariah sector; second – transforming the national Waqf management towards governance, professionalism, and transparency that is digital-based;  third – developing Shariah business, providing the correct forms of assistance&nbs...

Sepangar Bay Power (Sepangar)’s MYR 575 million nominal value Sukuk Murabahah has been reaffirmed as AA1/Stable by RAM Ratings. In Kota Kinabalu, Sepangar owns and operates a 100MW combined-cycle gas turbine power plant. It signed a 21-year Power Purchase Agreement (PPA) with Sabah Electricity (SESB) in 2005, which is in force until 2029. Rating Rationale  Sepangar's strong cash flow to fulfil its debt obligations is reflected in the rating, which is bolstered by the favourable terms of its PPA with its sole off-taker, SESB. Despite a difficult...

An inaugural regulatory roundtable by the Auditing Organization for Islamic Financial Institutions (AAOIFI) was held virtually on the 7th of June 2021. It was convened to deliberate and have a discourse on the views of regulatory and supervisory institutions on the draft of the AAOIFI Financial Accounting Standards (FAS) 1 “General Presentation and Disclosures in the Financial Statements of Islamic Banks and Financial Institutions”. Why it Matters?  Member of AAOIFI Board of Trustees, Noor Abid, who chaired the overall event, stated the importance of the even...

Although taxation is one of the mechanisms implemented to increase government revenue, encouraging a philanthropy economy could complement the country’s fiscal policy and help it to develop, according to Chief Economist of Bank Islam Malaysia, Dr Mohd Afzanizam Abdul Rashid. Why it Matters?  Given the currently fluid state of affairs, it is near impossible for the Government of Malaysia to levy new taxes in the near term. Therefore, the fiscal policy must be responsive to the...

Impact of Coronavirus Pandemic on Financial Market Stability in AfricaSukuk

Satisfaction of the Sub-Sale House Purchasing: Are the Islamic Banks Different?Islamic banking, Shariah

The Variation of Islamic Banks’ Deposits: Evaluation on The Impact of Financial Crisis and Bank RisksIslamic banking, Credit Risk

Nazir Management Improvement and Regulation Adjustments to Increase Waqf Land ProductivityArif, Islam, Musharakah, Waqf, Waqif

Fitch Ratings (Fitch) Indonesia has assigned a National Long-Term Rating of ‘A-(idn)’ to industrial gas and medical gas supplier PT Aneka Gas Industri (Aneka Gas; A-(idn)/Stable) proposed IDR-denominated conventional bonds and Sukuk.  Ratings Rationale  Aneka Gas’s rating reflects its robust market position, diversified revenue and healthy EBITDA margin, which is above 30%. These factors are counterbalanced by the company’s large growth capex requirements and moderate net debt/EBIDTA of 4.0x – 4.5x.  Fitch a...

Saudi Arabian Oil Company (Saudi Aramco) has sold USD 6 billion worth of Sukuk in its first USD-denominated Sukuk issuance, which took place on the 9th of June 2021. The energy company sold the Sukuk in three tranches comprising of USD 1 billion in a three-year tranche, USD 2 billion in a five-year tranche and USD 3 billion in a 10-year tranche. The deal attracted combined orders in excess of USD 60 billion, according to people familiar with the transaction, as reported in media.  Why it Matters?  According to an earlier Tada...