The Libyan Stock Market, which has been closed for six years as a result of the war, is expected to reopen its operations within the next five months, according to a report by United Arab Emirates-based news agency Asharq Business. Why it Matters?  The Libyan Stock Market is to see multiple public offerings in 2021, including two Islamic banks and a real estate investment fund along with a number of potential Sukuk offerings. As stated by the General Manger of the Libyan Stock Market, Ahmed Karou...

Malaysian sovereign wealth fund Khazanah Nasional (Khazanah)  has returned to the USD Sukuk market, having successfully priced a dual-tranche offering of a 5-year USD 400 million Sukuk due 2026 and a 10-year USD 600 million Sukuk due 2031.  Why it Matters?  Chief Financial Officer of Khazanah, Faridah Bakar Ali, said that this high demand showed the confidence that investors have in Khazanah’s credit and its ability to deliver its mandate. The proceeds from this issuance are to be allocated towards general investments, the refinancing of b...

The IILM issues USD1.11 billion of short-term SukukSukuk

RAM Rating Services (RAM) has reaffirmed Bank Muamalat Malaysia Berhad’s (BMMB or the Bank) financial institution ratings (FIRs) at A2/Stable/P1. In addition, BMMB’s MYR 1 billion Subordinated Sukuk Murabahah Programme (2016/2036) rating has been reaffirmed as A3/Stable by RAM.   Ratings Rationale The FIRs reflect BMMB’s robust capitalization and provisioning coverage, which provide a strong buffer against weakening in asset quality when financial relief measures are phased out. The differe...

Oman-based businesses Alizz Islamic Bank and Zain Property Development have signed a cooperation agreement whereby Alizz Islamic Bank will offer Shariah-compliant home financing solutions to those that wish to acquire homes in the residential complexes that are being developed by Zain Property Development. Alizz Islamic Bank would provide financing facilities, flexible payment options, and speedy and smooth procedures for customers of Zain Property Development projects. Why it Matters?  The signing of this agreement is i...

The International Islamic Liquidity Management Corporation (IILM) has completed its short-term Sukuk reissuance amounting to USD 1.11 billion, according to a statement released on the 4th of May 2021. The Sukuk, which marks IILM’s fifth issuance of 2021, comprised of USD 400 million one-month tenure priced at 0.30%, USD 400 million three-month tenure at 0.35% and USD 310 million six-month tenure at 0.42%.  Why it Matters?  The Sukuk reissuance saw strong demand from Islamic Primary Dealers, particularly from investors from the Gu...

Islamic finance assets in Sub-Saharan Africa are expected to grow as much as 25% in 2021 to return to pre-COVID-19 levels as governments reopen their economies, said Director for the Middle East, Africa and India at Jersey Finance, Faizal Bhana.  Why it Matters?  As African nations could struggle to raise financing coming out of the pandemic, Sukuk is one way for governments to raise funds from international markets. Islamic finance is relatively undeveloped in Africa; a report by Islamic Finance Advisory & Assurance Services estimates that Isla...

The Government of Indonesia has 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 4th of May 2021, according to a statement issued by the Directorate General of Budget Financing and Risk Management (DJPPR), Ministry of Finance. Total entry bids reached IDR 19.906 trillion, which was higher than that received from the previous auction which came up to IDR 17.909 trillion and raised IDR 7.365 trillion.  Why it Matters?  The funds obtaine...

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), which is a member of the Islamic Development Bank (IsDB), has provided USD 50 million in insurance coverage in the form of an Islamic Bank Master Policy (BMP) to the Arab Bank for Economic Development in Africa (BADEA).  Why it Matters?  This is the first Islamic BMP signed between ICIEC and a Multilateral Development Bank. The BMP provided by ICIEC will assist BADEA’s participation in syndication with the International Islamic Trade Finance C...

On the 3rd of May 2021, Standard and Poor’s Global Ratings (S&P) released a statement noting that the market share of participation banks within Turkey’s banking sector is forecast to double to 15% by 2025. However, there could be hindrances, and the lack of capital could constrain growth of Islamic finance in Turkey.  Why it Matters?  COVID-19, energy transformation and the country’s goal of producing electric cars could all contribute to increased use of social and green financing tools, which include Islamic fi...