As part of its efforts in collaboration and synergies with various parties to accelerate Indonesia’s economic growth and fostering of financial inclusion, Bank Syariah Indonesia (BSI) is continuing its collaboration with Perusahaan Listrik Negara (PLN) in the form of signing a cash management service cooperation agreement and issuing guarantees for the procurement of goods/services within PLN.  Why it Matters?  President Director of BSI, Hery Gunardi, noted that it is trying to optimise the role of Islamic banks in aiding the country&rsquo...

RAM Ratings (RAM) has reaffirmed the AAA/Stable/P1 financial institution ratings of Public Islamic Bank (Public Islamic). Concurrently, RAM has reaffirmed the respective AAA/Stable and AA1/Stable ratings of senior and subordinated Sukuk under Public Islamic’s Sukuk Murabahah Programme of up to MYR 5 billion. Public Islamic is the core subsidiary of Public Bank (the Group), whose ratings were also reaffirmed at AAA/Stable/P1 by RAM.  Ratings Rationale  The one-notch rating differential between Public Islamic’s AAA long-term financial inst...

Bank Pembangunan Malaysia Berhad’s (BPMB) MYR 1.25 billion Sukuk Wakalah has received positive response from diversified investors during its book-building exercise, and has surpassed its initial target issue size of MYR 750 million, according to a statement issued on the 1st of June 2021.  Why it Matters?  The offering marks BPMB’s second issuance under its Sukuk Wakalah programme, and reflects the market confidence in the development bank’s fundamentals and strategic direction, according to Arshad Mohamed Ismail, President and Group Ch...

Sanabel, a subsidiary of Bank of Khartoum, has launched a SDG 4.75 billion (USD 11.3 million) green Sukuk on the 31st of May 2021, aimed at financing renewable energy for commercial use.  The investment fund, which was launched in partnership with Nahda Company for Sustainable Development and the Arab-African Company, will be divided into Sukuk worth SDG 500 each.  Why it Matters?  According to media reports, the investment fund marks Sudan’s inaugural green Sukuk, and aims to finance the production of 55 megawatt hours per day of ren...

According to officials, the Government of Bangladesh is likely to grant fiscal benefits in an effort to attract investment in Sukuk. Accordingly, the current gain tax of 4% on asset transfers to special-purpose vehicles might be waived, with Finance Minister AHM Mustafa Kamal anticipated to propose the tax waiver through the national budget for fiscal year 2021-22 on the 3rd of June 2021. Why it Matters?  According to a senior official at Bangladesh Bank, this measure should aid in attracting investment in Sukuk. Industry insiders have note...

Analysis of the Supporting Factors of Customer Engagement as a Marketing Strategy for Islamic Banking Services in IndonesiaIslamic banking

The AAA/Stable/P1 ratings of Tenaga Nasional (TNB)’s Sukuk programmes have been reaffirmed by RAM Ratings (RAM). The instruments and corresponding ratings are as follows: (i) MYR 5 billion Islamic MTN Programme (2017/2067): AAA/Stable, (ii) MYR 10 billion Islamic MTN Programme (2020/2070): AAA/Stable and (iii) MYR 2 billion Islamic CP Programme (2021/2028): P1.  Rating Rationale  The ratings are underpinned by TNB’s strategic position as Malaysia’s national electricity company and its resilient operating and financial performan...

Customers across the African continent can now opt for a Shariah-compliant discretionary trust that allows structuring of assets and estate planning according to Islamic guidelines. This facility is offered by South-Africa based Standard Bank. Why it Matters? In South Africa, as well as globally, there is usually a loss of wealth as such trust funds are passed down from one generation to the next. These trust structures facilitate a sustainable method of implementing inheritance rules to ensure that the needs of the bene...

Oman now has available an instant ‘Goods Financing’ product in the country. Launched by Alizz Islamic Bank on the Islamic Finance Initiation Network (IFIN), the financing solution is based on a Murabahah concept, whereby the bank purchases goods wanted by a customer from the authorised dealer and then sells those goods back to the customer. The customer settles the bank at an agreed price that is paid for in instalments. Why it Matters? Availing finance has now been made instant through a 10-minute process at a store’s check-out counter. The...