The engagement priorities of investors on climate change and the impact on oil & gas companies have been transparently clear, but became realized in quick succession at several different companiesThree events last week from a Dutch court and in shareholder votes at two listed oil companies highlighted how change can come much faster than expectedThe sudden realization of ESG risks presents a challenge for financial institutions that can’t prepare for every possible outcome , and must prioritize where they make investments to prepare for the next breakthrough issue...

Malaysian Rating Corporation (MARC) has affirmed its A+IS(s) rating on Projek Lintasan Sungai Besi – Ulu Klang’s (PLSUKE) Sukuk Wakalah Programme of up to MYR 2.0 billion, with a Stable Outlook. Ratings Rationale:  The rating reflects the credit strength of Projek Lintasan Kota Holdings (PROLINTAS), which provides a completion guarantee to PLSUKE during the construction period, unconditionally and irrevocably. The guarantee covers shortfalls in PROLINTAS’ finance service reserve account (FSRA) and/or fi...

Bank Syariah Indonesia (BSI), the country’s largest Islamic lender, intends to appeal to the growing group of religious millennials to help double its assets within three to four years. The strategy includes creating a better online banking experience linked to popular e-wallets and e-commerce platforms that include religious aspects. Why it Matters?  With over 230 million Muslims, Indonesia has the world’s largest Muslim populace, but conventional finance is ahead of Islamic banking, something that Chief Executive Officer of BSI, Hery Gunardi, attributes to...

The Ministry of Public Health of Qatar has published a guide on the import of Halal food as well as what Islamic entities can provide Halal product and Halal slaughtering certificates. This guide was published on its website.  Why it Matters?  The guide is a significant step forward in food safety, as it clarifies the Halal requirements, and verifies the validity, accuracy and credibility of Halal certificates that attest that meat, meat products or foods containing meat are of animal origin that has been supervised by one of the Halal cert...

Oman has stated its plans to issue USD 1.5 billion in nine-year Sukuk, which will mark its second Sukuk issuance for 2021, according to an official document. The deal which launched on the 8th of June 2021 has hired Citibank, HSBC, Standard Chartered, Bank ABC and Bank Muscat as arrangers.  Why it Matters?   Low oil prices and the on-going impact of COVID-19 means that Oman expects to continue to have significant financing requirements, according to the prospectus. Oman is capitalising on investor demand for high-yielding bonds, amidst its...

The Islamic Development Bank Institute (IsDBI) has released a report drawing attention to how Islamic finance and artificial intelligence (AI) can raise levels of financial inclusion. This report lays out an Islamic finance framework for financial inclusion, analyses the main roadblocks to AI adoption and proposes strategies for leveraging Islamic finance with AI to improve financial inclusion.  Why it Matters?  IsDBI Acting Director-General and IsDB Group Chief Economist, Dr Sami Al-Suwailem, said that this report is pertinent, coming at a time when COVID-19...

United Arab Emirates’-based Emirates REIT has withdrawn its plan to amend the terms of its USD 400 million Sukuk. On the 18th of May 2021, Emirates REIT announced its plans to exchange unsecured Sukuk for new Sukuk, whilst extending the credit maturity to 2024 from 2022.     Why it Matters? Forceful opposition from investors resulted in only 57% of the investor base in favour of the proposal, falling short of the 75% required to push the proposal through. Investors stated that Emirates REIT should re-look at its management expenses, with m...

Saudi Arabian Oil Company (Saudi Aramco) announced the launch of US Dollar-denominated international Sukuk under its Trust Certificate Issuance Programme (the Programme) on the 7th of June 2021, according to media reports. The Programme will continue through the 17th of June 2021.  Why it Matters? In a statement to Tadawul, Saudi Aramco stated that the funds would go towards general corporate purposes, and is likely to enable the company to fulfil its USD 75 billion payment in dividends that was pledged to gather support at the time of its Initial Public Offering (...

The sale of the Cash Waqf Linked Sukuk (CWLS) Retail SWR002 Series offered by Indonesia’s Ministry of Finance from the 9th of April 2021 to the 3rd of June 2021 has raised IDR 24.14 billion in total volume of purchase orders from 591 wakifs, according to a statement released by the Directorate General of Financing and Risk Management (DJPPR).  Why it Matters?  The SWR002 Series, which is under a Wakalah contract using state property and the 2020 State Budget Project as underlying assets, wa...

Egypt’s Parliament has approved a new bill on sovereign bonds (Sukuk) on the 6th of June 2021, paving the way for the country’s Government to usher in an Islamic financing system and offer its first sovereign Sukuk on local and foreign markets, according to Egypt’s Minister of Finance, Mohamed Maait.  Why it Matters? The Sovereign Sukuk bill is part of the Government’s new policy of diversifying sources of finance, attracting a larger investor base, and boosting cash liquidity into the country’s governmental financial market. In addition, t...