BIMB Investment Management (BIMB Investment), a subsidiary of Bank Islam Malaysia, intends to reach MYR 50 million in assets under management (AUM) for its Makmur myWakaf fund in 2021.  Why it Matters?  Chairman of BIMB Investment, Mohamed Ridza Mohamed Abdulla, said that Waqf plays a key role in the economic development and welfare of a country, adding that that the fund enables investors to partake in the revenue prospects of the Malaysian, Asia Pacific and global markets through tactical asset...

Albilad Capital, a wholly-owned investment arm of Saudi Arabia-based Bank Albilad is set to make a key acquisition of the PricewaterhouseCoopers (PWC) headquarters in Belfast, Northern Ireland. Abu Dhabi Islamic Bank (ADIB) is set to provide structured Islamic financing for the deal to the value of GBP 87 million. This marks the largest office transaction in Northern Ireland and the first major property investment in the country by an investor from the Middle East.  Why it Matters?  Known as...

Malaysian Rating Corporation (MARC) has affirmed the BBB-is rating of Senai-Desaru Expressway Berhad’s (SDEB) MYR 1.89 billion Islamic Medium-Term Notes Programme (Restructured Sukuk), while revising the Outlook to Negative from Stable. SDEB is the concessionaire of the 77-kilometre Senai-Desaru Expressway (SDE) in Johor, which links the towns of Senai and Desaru with a connecting highway to Pasir Gudang. Ratings Rationale The affirmation of the rating is based on SDEB’s sufficient near-term liquidity and the accommodative amortization schedule of...

On the 4th of April 2021, the International Islamic Financial Market (IIFM) announced that it had published Perpetual Sukuk Al Mudarabah Tier 1 Standard Documentation Templates. This set of documents consists of a Prospectus, Master Mudarabah Agreement and Declaration of Trust. Why it Matters?  This suite of documents provides the global industry with a uniform set of documents with standardised definitions and updated Shariah requirements whilst also addressing issues related to repetition, transparency and clarity. It would be significantly ad...

Fitch Ratings (Fitch) has affirmed the National Long-Term Rating and the National Short-Term Rating of Bank Syariah Indonesia (BSI) at AA (idn) with a Stable outlook and F1+ (idn), respectively. Fitch also affirmed BSI’s long-term issuer default rating at BB+ and upgraded the rating on BSI’s subordinated Sukuk to A+ (idn) from A (idn). Ratings and Outlook Rationale  The National Long-Term Rating of AA (idn) implies a very low degree of risk of default in comparison to other issuers or obligations in Indonesia or i...

According to a Tadawul filing, Saudi Arabia-based Al Rajhi Bank has signed an Islamic financing agreement to grant Saudi Arabia-based Yamama Cement a loan worth USD 230 million (SAR 863 million).  Why it Matters?  Yamama Cement stated that the proceeds of this facility will be utilised towards settling obligations to other banks as well as towards enhancing financial efficiency in order to fund a boost to the company’s working capital.  Details  This loan is to be disbursed in two tranches by Al...

Speaking at a national insurance seminar in Morocco, Bank Al-Maghrib Governor, Abdellatif Jouahri stated that Takaful is to be launched soon in the country, as the main stakeholders are collectively working on finalising matters related to this. Why it Matters?  The launch of Takaful insurance is seen as a key factor in aiding the growth of participatory finance in Morocco, which is mainly spurred on by the country’s real estate sector. Although the Moroccan parliament had approved a law on Takaful back in 2019, the rel...

The Government of the Republic of Maldives (Maldives) has successfully priced its USD 200 million sovereign Sukuk, on the 29th of March 2021, via the Ministry of Finance. The Sukuk, which has an Ijara structure with a Murabahah component has a five-year tenure with a semi-annual profit rate of 9.875%.  Why it Matters?  Marking the Maldives’ first sovereign Sukuk issuance, funds raised will go towards the settlement of tender offers for the Government’s 2022 Treasury bonds. The Finance Minister of the Maldives’, Ibrahim Ameer, stated that t...

The 7th Doha Islamic Finance Conference concluded on the 3rd of April 2021, requesting global partnerships between government institutions and the private sector with the aim of supporting digital transformation efforts in the finance industry, in line with Shariah-compliance. From a local perspective, greater coordination between private sector institutions and government agencies was called for, to support digital transformation in line with Shariah objectives, in order to achieve the Qatar National Vision 2030. Why it Matter...

The Influence of Exchange Rate, Inflation, For the Results of the Development Assets of Islamic BanksIslam, Islamic banking