The government of Indonesia has issued USD 5 billion worth of green Sukuk globally, as per a statement made by Sri Mulyani Indrawati, Indonesia’s Minister of Finance at the “LIKE IT: Sustain Habit in Investing, Invest in Sustainable Instruments” event held on the 12th of August 2022. Why it Matters? Indonesia is the largest issuer of green Sukuk and has been consistent in offering these instruments since 2018. The nation’s offerings amount to USD 5.5 billion in government issues and account for 54% of all green Sukuk offerings worldwide. These issuanc...

Ethis Group (Ethis), Ethical and Islamic investment, and social finance platform operator, has announced the re-launch of its Ethis Super Angel (ESA), rebranded as the ESA Syndicate in 2022, as per a press release issued on the 10th of August 2022. Why it Matters? ESA Syndicate is a private group of global angel investors that makes investments in businesses that adhere to Shariah and have the potential to generate significant profits. It was first established as a network inside the Ethis community in 2020 and is by invitation only with over 50 angel investors activate...

Environmental, social and governance- (ESG) linked Sukuk are expected to remain a significant issuance theme in core Islamic finance jurisdictions, supported by increasing investor demand and awareness, as well as government policies that support sustainability and economic diversification, according to Fitch Ratings. Why it Matters?  The ESG-linked Sukuk segment, which includes green, sustainable, sustainability-linked, and transition Sukuk, has been growing as a significant portion of the global Sukuk market despite volatility brought on by the Russia-Ukraine war, ris...

It is not easy for any sovereign wealth fund (SWF) to obtain a debut credit rating, especially since there is an effort that ranges from 6 to 8 months of continuous work with credit rating agencies to know the outcome of the credit rating.I have dealt with credit rating agencies and do realise how strict these entities are when it comes to obtaining the most accurate information from the party that wishes to obtain a rating.These ratings do not compliment the companies that wish to be rated. This is to preserve the rights of investors who will invest in the bonds / Sukuk of the issuers,...

It is more complex than it first appears to tell whether a financial institution is aligned with a long-term emissions trajectory consistent with Net Zero. Financed emissions are important, but using institution-level data (where available) as a target without considering the economy as a whole could lead to ‘paper decarbonisation’ that results in the broader economy falling out of alignment unless targets are set considering the full-economy view. Last month, Finance Watch published a report questioning whether reaching Net Zero goals was possible by just focusing...

The government of Indonesia has successfully raised IDR 10.64 trillion (USD 716.35 million) from a State Sukuk or Government Shariah Securities (SBSN) auction held on the 9th of August 2022, higher than an IDR 7 trillion (USD 470.5 million) indicative target, according to the Ministry of Finance. Why it Matters? Total incoming bids for the auction stood at IDR 30.85 trillion (USD 2.07 billion), higher than the IDR 10.77 trillion (USD 723.9 million) in bids received at the previous auction held on the 26th of July 2022, while the Sukuk carried lower weighted average yields. ...

Bank Islam Malaysia Berhad (Bank Islam) and United Kingdom-based Islamic Fintech Kestrl have entered a strategic partnership for the creation and deployment of personal financial management (PFM) features for Bank Islam’s newly launched digital bank ‘Be U’, as per a press release issued on the 5th of August 2022. Why it Matters? Through the collaboration, which marks the first formal partnership between an Islamic Fintech and an Islamic Bank globally, Bank Islam aims to channel Kestrl’s PFM tool and the Be U app to market its Islamic banking products and&n...

The National Mortgage Corporation of Malaysia, Cagamas Berhad (Cagamas), has announced the successful pricing of Sukuk worth MYR 525 million (USD 117.7 million), as per a statement made on the 8th of August 2022.  Why it Matters?  The issuance comprised MYR 25 million (USD 5.6 million) 1-year Islamic Medium-Term Notes (IMTNs), MYR 115 million (USD 25.8 million) 2-year IMTNs, MYR 100 million (USD 22.4 million) 3-year IMTNs, and MYR 285 million (USD 63.9 million) 2-year ASEAN Social SRI Sukuk (Social SRI Sukuk). Proceeds from the offering will go toward paying for the acq...

Guidelines for Shariah-Compliant Investments on the Pakistan Stock Exchange (PSX) are issued by the Securities and Exchange Commission of Pakistan (SECP) in accordance with section 40B of the Securities and Exchange Commission of Pakistan Act, 1997 with the purpose to assist investors dealing in Shariah-compliant investments through the PSX. Why it Matters? According to SECP, a Shariah-Compliant Index (SCI) is meant to serve as a benchmark for assessing the performance of the Shariah-compliant segment of the market. An SCI is designed to boost investors' confidence and involvemen...