RAM Ratings (RAM) has assigned a final AAA(s)/Stable rating to Infracap Resources’ (Infracap) MYR 15 billion Sukuk Murabahah Programme (2021/2041) (the Sukuk).  On the 27th of January 2021, RAM assigned a preliminary rating to the Sukuk, with the ratings agency affirming the same for the final rating. This followed a review of relevant final transaction documents and the repayment schedule, which fall in line with RAM’s expectations.  Ratings Rationale Infracap, through its wholly-owned subsidiary...

Fitch Ratings (Fitch) has affirmed Wifak International Bank’s (Wifak) National Long-Term Rating at ‘BB-(tun)’ with a Negative Outlook and National Short-Term Rating at 'B(tun)'. Wifak, which was previously a leasing company, completed its transformation into a bank in the first half of 2017 and now operates as the smallest of three Islamic banks in Tunisia.  Ratings and Outlook Rationale The ratings reflect the bank’s small size and less than 1% of total banking sector assets in domestic market share. Although Wifak is still not pr...

Japan’s Ambassador to Malaysia, Oka Hiroshi, stated that several Japanese food-producing companies are pursuing Halal certification from Malaysia’s Department of Islamic Development (JAKIM) for their products. Speaking during a visit to the Malaysian National News Agency (Bernama) headquarters on the 12th of April 2021, the Ambassador elaborated that these companies are keen to make Malaysia their entry point to marketing Halal products to other countries as well.  Why it Matters?  There is mutual trust...

The Security and Exchange Commission of Pakistan (SECP), which acts as the country’s financial regulatory agency, has introduced amendments in Murabahah Share Financing (MSF) Regulations to promote Islamic finance products in the capital market.  Why it Matters?  MSF is a Shariah-compliant product which provides a viable alternate for capital market investors who prefer Islamic financing. The amendment, which includes a system-based initiation and affirmation process, will facilitate Islamic Financial Institutions and market participants to fulfil s...

Bahrain’s Long-Term Foreign Currency Issuer Default Rating (IDR) has been affirmed at B+ by Fitch Ratings (Fitch), with a Stable Outlook. Ratings Rationale Bahrain’s ratings are backed by robust financial support from partners in the Gulf Cooperation Council (GCC), high gross domestic product (GDP) per capita and human development indicators, as well as strong macroeconomic performance.  However, the ratings are constrained by weak public finances, low reserves of foreign exchange, high dependence on oil revenue and political restr...

The International Monetary Fund (IMF) estimates Oman’s gross domestic product (GDP) to grow 1.8% in 2021, compared to its previous estimate of a 0.8% contraction for 2021.This was outlined in the IMF’s latest World Economic Outlook (WEO) report, published in April 2021.  Why it Matters?  The revision comes on the back of quick and decisive decision-making by Oman as well as the Gulf Cooperation Council (GCC) nations in response to COVID-19, which has helped to control the damage. However, there is a high level of uncer...

Pemeringkat Efek Indonesia (PEFINDO) has affirmed the ‘idAAA(sy)’ ratings of Indonesian state owned infrastructure development entity Sarana Multi Infrastruktur’s (SMI) Shelf Registered Sukuk Mudharabah (Sukuk). The Sukuk ratings include SMI’s Sukuk Mudharabah I Phase I Year 2018 Series A (IDR 680 billion) and Series B (IDR 320 billion), as well as Sukuk Mudharabah I Phase III Year 2019, consisting of Series B (IDR 417 billion), Series C (IDR 84 billion), and Series D (IDR 76 billion). In ad...

RAM Ratings (RAM) has reaffirmed the AA3/Stable rating of Exsim Ventures’ MYR 68 million Tranche 1 Islamic medium term notes (IMTN) under its MYR 2 billion Sukuk Musharakah Programme (IMTN Programme). Exsim Ventures is a wholly-owned Malaysian subsidiary and special-purpose vehicle of Exsim Development (Exsim Group). The Tranche 1 IMTN is backed by sale and purchase agreements signed with buyers relating to Scarletz Suites (the Project).  Ratings Rationale The reaffirmation reflects satisfactory progress of construction and suffi...

AlDar Investment Fund, a closed-end, Shariah-compliant real estate investment fund, has been launched by Jadwa Investment (Jadwa), together with AlMajdiah Group and Riyad Bank. The fund’s plan is to construct multiple high-quality residential apartment complexes whose target dwellers are those from middle-income to high-income households. The total size of the fund is SAR 1 billion (USD 266 million) and its term is three years with two extensions of one year each. Why it Matters?  The fund has garnered strong demand from investors wit...

Whilst addressing the virtual gathering at the 10th assembly of the Developing-8 (D-8) summit, Turkish President, Recep Tayyip Erdoğan, pushed the concept of the foundation of an Islamic megabank that could meet the liquidity requirements of varied Islamic financial institutions and infrastructure projects.  Why it Matters?  Erdoğan emphasised the need for world cooperation particularly in view of COVID-19 and also stressed on the need for the increased use of local currencies when engaging in trade transaction...