Pengerang LNG (Two) [PLNG2] has successfully issued a 20-year multi-tranche MYR 1.7 billion Sukuk Murabahah facility under its Islamic Medium Term Notes programme. The issuance was oversubscribed by over three times, according to a statement by Petronas Gas. PLNG2 is a 65%-owned subsidiary of Petronas Gas Bhd (PGB).  Why it matters? The funds raised will go towards the repayment of Shariah-compliant, outstanding USD shareholders’ loans in full. Kamal Bahrin, Chairman of PLNG2, stated that the issuance is in line with PLNG2’s on-going effo...

The World Bank Group (World Bank) expects Malaysia’s economy to recover in 2021 mainly due to the roll out of the COVID-19 vaccine, according to Richard Record, World Bank Group’s Trade and Investment Global Practice Lead Economist. Speaking at the virtually-held 2021 Malaysia’s Economic and Strategic Outlook Forum (MESOF) titled “The Post-COVID-19 New Normal — Where Do We Go from Here”, Record noted that the World Bank forecasts an economic growth of 5.6% to 6.7% in Malaysia for 2021, against global growth of 4.0%. Why i...

The Islamic NPC Company Limited (INPCCL) has set up Mudarabah certificates in GBP and EUR, following the Government of Pakistan’s confirmation of Shariah structure for the issuance of Islamic Naya Pakistan Certificates (INPCs) in both currencies in the third week of February 2021. This announcement was made by a leading Islamic bank in Pakistan, confirming that banks are gearing up in the capacity of agents to offer the INPCs on behalf of the Government. Why it matters? Strong demand from non-resident Pakistanis led the Government to introduce a Shariah-compliant...

Coming out of the COVID-19 pandemic, the Islamic banking industry is expected to witness growth in economies across South and Southeast Asia as demand for financing increases, according to Moody’s Investors Service (Moody’s). Despite weakened profitability in 2020, Islamic banks across South and Southeast Asia have strong capital and liquidity to be able to meet the said demand, according to Moody’s.Why it matters? Islamic banking forms a part of a Halal ecosystem that governments across South and Southeast Asia are keen to create in order&nb...

Fitch Ratings (Fitch) has affirmed Bank Syariah Indonesia’s (BSI; formerly Bank BRISyariah) Long-Term Issuer Default Rating (IDR) at 'BB+' following the completion of the merger with Bank Syariah Mandiri and Bank BNI Syariah, which took place on the 1st of February 2021.  Concurrently, Fitch Ratings Indonesia has affirmed BSI’s National Long-Term Rating at ‘AA(idn)’ and National Short-Term Rating at ‘F1+(idn)’. The long-term rating’s Outlook is Stable.  Ratings Rationale The ratings refl...

Based in the United Arab Emirates, Gulf Islamic Investments (GII) targets an increase in its global Assets Under Management (AUM) by USD 1 billion (50%) in 2021 from its current value of USD 2 billion. This includes a USD 300 million investment in the Middle East’s logistics and warehousing real estate industry as part of a consortium with an institutional investor in 2021.   Why it matters? According to Mohammed Alhassan, Founding Partner and Co-Chief Executive Officer (Co-CEO) of GII, investing in logistics&...

Ayman Amin Sejiny, the Chief Executive Officer of the Islamic Corporation for the Development of the Private Sector (ICD), which is the private sector arm of the Islamic Development Bank (IsDB) Group, and Sakhi Annaklichev, the Chairman of the Management Board of Uzbek Industrial and Construction Bank (JSCB), have signed a USD 25 million Shariah-compliant Line of Financing Agreement, according to a statement issued on the 16th of February 2021.  Why it matters?  The Agreement will be utilised by JSCB to finance private sector businesses in Uzbek...

The Government of Indonesia has raised IDR 4.995 trillion from its biweekly auction of State Shariah Securities (SBSN), also known as State Sukuk, held on the 23rd of February 2021, according to a statement issued by the Directorate General of Budget Financing and Risk Management (DJPPR), Ministry of Finance. The amount raised only made up around 40% of the indicative target of IDR 12 trillion.  Why it matters?  The funds obtained in the auction will be used by the Government to fulfil part of its financing target in the 2021 State Revenue and Expenditure Budget (APBN)....

The Centre For Islamic Banking, Finance and Management (CIBFM) has been rebranded as Brunei Institute of Leadership and Islamic Finance (BILIF) on the 22nd of February 2021, eleven years since its establishment. With its new corporate identity, BILIF seeks to address skills gaps in both the public and private sectors, providing opportunities for reskilling and upskilling. According to the Chairperson of BILIF’s Board of Directors, Hjh Rokiah Hj Badar, the in...

Moody’s Investors Service (Moody’s) has reported that Malaysia will continue its lead on the global Islamic financial market with regards to Sukuk issuance in 2021. Whilst Moody’s forecasts global Sukuk issuance to grow to between USD 190-200 billion in 2020, (compared to USD 205 billion in 2020), it expects Malaysia to bring in a ‘fairly sizeable’ Sukuk volume.  In 2020, Malaysia's total Sukuk issuances amounted to USD 65.6 billion, accounting for 32% of glo...