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Financial Institutions ‘Show a Strikingly Low Appreciation of Capacity and Resource Needs’ for Good Climate Risk Management

Banks are likely to have to move quickly to improve their climate risk assessment and mitigation as regulatory expectations rise. The European Central Bank's (ECB) review of European banks’ progress shows how important it is to move quickly as climate risks are no longer distant and have rapidly become material risks in the short- to medium-term (3-5 years).  The ECB released a ‘thematic review’ of over 100 banks of varying sizes with EUR 25 trillion of assets and found significant gaps in climate risk managementBanks have rapidly increased their focus on...

Blake Goud | November 15, 2022

Financial Institutions ‘Show a Strikingly Low Appreciation of Capacity and Resource Needs’ for Good Climate Risk Management

Financial Institutions ‘Show a Strikingly Low Appreciation of Capacity and Resource Needs’ for Good Climate Risk Management

Banks are likely to have to move quickly to improve their climate risk assessment and mitigation as regulatory expectations rise. The European Central Bank's (ECB) review of European banks’ progress shows how important it is to move quickly as climate risks are no longer distant and have rapidly become material risks in the short- to medium-term (3-5 years).  The ECB released a ‘thematic review’ of over 100 banks of varying sizes with EUR 25 trillion of assets and found significant gaps in climate risk managementBanks have rapidly increased their focus on...

Blake Goud | November 15, 2022

Indonesia’s Intiland Development to Issue Sustainable Sukuk Ijarah I Phase III Worth IDR 250 Billion 

PT Intiland Development Tbk (Intiland Development), Indonesia-based property developer, has announced plans for the issuance of an IDR 250 billion (USD 16.16 million) Sustainable Sukuk ijarah I Phase III in 2022, offered in two Series, namely Series A worth IDR 125 billion (USD 8.08 million) with a two-year term and Series B valued at IDR 125 billion (USD 8.08 million) with a three-year term. Why it Matters? The proceeds from the offering will be utilised to increase the capital of Intiland Development and pay off (refinance) company debt, while the beneficial rights to a 9,...

IM Insights | November 14, 2022

Indonesia’s Intiland Development to Issue Sustainable Sukuk Ijarah I Phase III Worth IDR 250 Billion 

Indonesia’s Intiland Development to Issue Sustainable Sukuk Ijarah I Phase III Worth IDR 250 Billion 

PT Intiland Development Tbk (Intiland Development), Indonesia-based property developer, has announced plans for the issuance of an IDR 250 billion (USD 16.16 million) Sustainable Sukuk ijarah I Phase III in 2022, offered in two Series, namely Series A worth IDR 125 billion (USD 8.08 million) with a two-year term and Series B valued at IDR 125 billion (USD 8.08 million) with a three-year term. Why it Matters? The proceeds from the offering will be utilised to increase the capital of Intiland Development and pay off (refinance) company debt, while the beneficial rights to a 9,...

IM Insights | November 14, 2022

Saudi Arabia’s APICORP Inks USD 75 Million Islamic Facility with Hartree to Fund Carbon Offsets 

Kingdom of Saudi Arabia-based energy-focused multilateral financial institution, Arab Petroleum Investments Corporation (APICORP) and Hartree Partners LP affiliate, Hartree Partners Power & Gas Company (UK) Limited, a global energy and commodities firm, have signed a USD 75 million Murabaha agreement in favour of the latter, according to a press release issued on the 7th of November 2022. Why it Matters?  The facility will provide funding for top-notch voluntary carbon offsets that are registered with the non-profit platform Verra as well as the development of...

IM Insights | November 11, 2022

Saudi Arabia’s APICORP Inks USD 75 Million Islamic Facility with Hartree to Fund Carbon Offsets 

Saudi Arabia’s APICORP Inks USD 75 Million Islamic Facility with Hartree to Fund Carbon Offsets 

Kingdom of Saudi Arabia-based energy-focused multilateral financial institution, Arab Petroleum Investments Corporation (APICORP) and Hartree Partners LP affiliate, Hartree Partners Power & Gas Company (UK) Limited, a global energy and commodities firm, have signed a USD 75 million Murabaha agreement in favour of the latter, according to a press release issued on the 7th of November 2022. Why it Matters?  The facility will provide funding for top-notch voluntary carbon offsets that are registered with the non-profit platform Verra as well as the development of...

IM Insights | November 11, 2022

KCB Bank Tanzania Set to Raise TZS 10 Billion Through its First Sukuk Issuance 

KCB Bank Tanzania Limited (KCB Bank Tanzania) has announced its plans to raise TZS 10 billion (USD 4.3 million) via its maiden public Sukuk offering, Fursa Sukuk, as per a statement made by the bank on the 9th of November 2022. Why it Matters? The offering is issued at a time when other lenders have lately opened their bonds to the financial markets and the funds will be used to finance the asset portfolio owned by KCB’s Sahl Banking. The minimum initial investment for KCB’s Fursa Sukuk is TZS 500,000 (USD 214) and it offers the opportunity for Tanzanian and non-Tanza...

IM Insights | November 11, 2022

KCB Bank Tanzania Set to Raise TZS 10 Billion Through its First Sukuk Issuance 

KCB Bank Tanzania Set to Raise TZS 10 Billion Through its First Sukuk Issuance 

KCB Bank Tanzania Limited (KCB Bank Tanzania) has announced its plans to raise TZS 10 billion (USD 4.3 million) via its maiden public Sukuk offering, Fursa Sukuk, as per a statement made by the bank on the 9th of November 2022. Why it Matters? The offering is issued at a time when other lenders have lately opened their bonds to the financial markets and the funds will be used to finance the asset portfolio owned by KCB’s Sahl Banking. The minimum initial investment for KCB’s Fursa Sukuk is TZS 500,000 (USD 214) and it offers the opportunity for Tanzanian and non-Tanza...

IM Insights | November 11, 2022

Pakistan to Proceed with Establishment of Islamic Banking System: Finance Minister

The Federal Government of Pakistan will proceed with the establishment of an interest-free, Islamic banking system and withdraw appeals filed against it before the Supreme Court of Pakistan in the upcoming days, as announced by the country's Minister of Finance, Muhammad Ishaq Dar on the 9th of November 2022. Why it Matters? Since Pakistan's whole financial system, which has been in use for the previous 75 years, cannot be suddenly switched to a new system, recent efforts to impose an Islamic banking system in the country have encountered roadblocks and difficulties. The Sta...

IM Insights | November 10, 2022

Pakistan to Proceed with Establishment of Islamic Banking System: Finance Minister

Pakistan to Proceed with Establishment of Islamic Banking System: Finance Minister

The Federal Government of Pakistan will proceed with the establishment of an interest-free, Islamic banking system and withdraw appeals filed against it before the Supreme Court of Pakistan in the upcoming days, as announced by the country's Minister of Finance, Muhammad Ishaq Dar on the 9th of November 2022. Why it Matters? Since Pakistan's whole financial system, which has been in use for the previous 75 years, cannot be suddenly switched to a new system, recent efforts to impose an Islamic banking system in the country have encountered roadblocks and difficulties. The Sta...

IM Insights | November 10, 2022

Bank Rakyat Malaysia Issues MYR 500 Million Senior Wakalah Sukuk in Three Tranches  

Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat) has announced the issuance of Islamic Medium-term Notes (IMTN) Sukuk Wakalah worth MYR 500 million (USD 106 million) in three tranches, under its MYR 10 billion (USD 2.1 billion) Senior Wakalah Sukuk Programme and via special purpose company (SPV), Imtiaz Sukuk II Berhad. Why it Matters? The issuance, which was priced on the 27th of October 2022, was successful in generating favourable demand with a bid that was 2.58 times its original amount. Bank Rakyat will utilise the proceeds from the offering for Sharia...

IM Insights | November 10, 2022

Bank Rakyat Malaysia Issues MYR 500 Million Senior Wakalah Sukuk in Three Tranches  

Bank Rakyat Malaysia Issues MYR 500 Million Senior Wakalah Sukuk in Three Tranches  

Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat) has announced the issuance of Islamic Medium-term Notes (IMTN) Sukuk Wakalah worth MYR 500 million (USD 106 million) in three tranches, under its MYR 10 billion (USD 2.1 billion) Senior Wakalah Sukuk Programme and via special purpose company (SPV), Imtiaz Sukuk II Berhad. Why it Matters? The issuance, which was priced on the 27th of October 2022, was successful in generating favourable demand with a bid that was 2.58 times its original amount. Bank Rakyat will utilise the proceeds from the offering for Sharia...

IM Insights | November 10, 2022

Credit Rating and Conflict of Interest with ‘Fintech Sukuk’

International best practices require issuers to obtain a credit rating from an independent entity specialising in providing credit rating services. Therefore, there is a conflict of interest if fintech companies play a close role to the credit rating (by determining the degree of risk and granting a rating) given to the Sukuk issuer who will pay them a success fee for arranging the issuance which is marketed to mostly retail investors who might not be well-versed in understanding such risks.Indeed, for the first time, those fintech companies that specialise in serving small and medium-s...

Mohammed KHNIFER | November 09, 2022

Credit Rating and Conflict of Interest with ‘Fintech Sukuk’

Credit Rating and Conflict of Interest with ‘Fintech Sukuk’

International best practices require issuers to obtain a credit rating from an independent entity specialising in providing credit rating services. Therefore, there is a conflict of interest if fintech companies play a close role to the credit rating (by determining the degree of risk and granting a rating) given to the Sukuk issuer who will pay them a success fee for arranging the issuance which is marketed to mostly retail investors who might not be well-versed in understanding such risks.Indeed, for the first time, those fintech companies that specialise in serving small and medium-s...

Mohammed KHNIFER | November 09, 2022

Pakistan Completes PKR 46.44 Billion Ijara Sukuk Issuance with 5 Year Tenure 

The government of Pakistan has announced the successful issuance of 5 years tenured PKR 46.44 billion (USD 210 million) Ijarah Sukuk in a new series in October 2022, against assets of the National Highway Authority (NHA). Why it Matters?  The Finance Ministry has saved millions of rupees in financial costs through successfully raising money from the Islamic banking market using Sukuk at a rate that is 100 basis points, which is less expensive than alternative traditional methods. As the nation moves toward conversion to a Shariah-compliant financial and banking system, this will...

IM Insights | November 09, 2022

Pakistan Completes PKR 46.44 Billion Ijara Sukuk Issuance with 5 Year Tenure 

Pakistan Completes PKR 46.44 Billion Ijara Sukuk Issuance with 5 Year Tenure 

The government of Pakistan has announced the successful issuance of 5 years tenured PKR 46.44 billion (USD 210 million) Ijarah Sukuk in a new series in October 2022, against assets of the National Highway Authority (NHA). Why it Matters?  The Finance Ministry has saved millions of rupees in financial costs through successfully raising money from the Islamic banking market using Sukuk at a rate that is 100 basis points, which is less expensive than alternative traditional methods. As the nation moves toward conversion to a Shariah-compliant financial and banking system, this will...

IM Insights | November 09, 2022

International Islamic Liquidity Management Corporation Reissues Sukuk Worth USD 1.12 Billion in 3 Series 

The International Islamic Liquidity Management Corporation (IILM) has announced its reissuance of short-term A-1 rated Sukuk worth USD 1.12 billion in three series, on the 8th of November 2022. Why it Matters? The reissuance, which represents the 12th Sukuk auction by the IILM for 2022, has drawn interest from Islamic primary dealers and investors in the Gulf Cooperation Council (GCC) markets and Asia. With a total order book exceeding USD 1.71 billion and an average bid-to-cover ratio of 153%, the competitive tender experienced a strong overall demand. Details  Th...

IM Insights | November 09, 2022

International Islamic Liquidity Management Corporation Reissues Sukuk Worth USD 1.12 Billion in 3 Series 

International Islamic Liquidity Management Corporation Reissues Sukuk Worth USD 1.12 Billion in 3 Series 

The International Islamic Liquidity Management Corporation (IILM) has announced its reissuance of short-term A-1 rated Sukuk worth USD 1.12 billion in three series, on the 8th of November 2022. Why it Matters? The reissuance, which represents the 12th Sukuk auction by the IILM for 2022, has drawn interest from Islamic primary dealers and investors in the Gulf Cooperation Council (GCC) markets and Asia. With a total order book exceeding USD 1.71 billion and an average bid-to-cover ratio of 153%, the competitive tender experienced a strong overall demand. Details  Th...

IM Insights | November 09, 2022

Indonesia to Offer Savings State Sukuk Series ST009 by End of 2022

The government of Indonesia has announced its plans for the issuance of retail State Sharia Securities (SBSN) type Savings State Sukuk (ST) Series ST009 once again, to be offered for 20 days, from the 11th of November 2022 to the 30th of November 2022, according to Ramdhan Ario Maruto, Associate Director, Head of Fixed Income, Anugerah Sekuritas Indonesia, PT on the 6th of November 2022. Why it Matters? The ST009 Series represents the sixth and last retail government bond to be issued in 2022. Despite the market still in its deepening stage, the number of investors for...

IM Insights | November 07, 2022

Indonesia to Offer Savings State Sukuk Series ST009 by End of 2022

Indonesia to Offer Savings State Sukuk Series ST009 by End of 2022

The government of Indonesia has announced its plans for the issuance of retail State Sharia Securities (SBSN) type Savings State Sukuk (ST) Series ST009 once again, to be offered for 20 days, from the 11th of November 2022 to the 30th of November 2022, according to Ramdhan Ario Maruto, Associate Director, Head of Fixed Income, Anugerah Sekuritas Indonesia, PT on the 6th of November 2022. Why it Matters? The ST009 Series represents the sixth and last retail government bond to be issued in 2022. Despite the market still in its deepening stage, the number of investors for...

IM Insights | November 07, 2022

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