The National Mortgage Corporation of Malaysia, Cagamas Berhad (Cagamas) has successfully concluded the issuance of MYR 2.8 billion (USD 590 million) Sukuk comprising MYR 500 million (USD 105 million) three-year Asean social sustainable and responsible investment (SRI) Sukuk and MYR 2.3 billion (USD 485 million) combined multi-tenured Islamic Medium-term Notes (IMTNs), as per a statement by the company on the 1st of November 2022. Why it Matters? The issuance, from both domestic and international markets, precedes anticipated further tightening of monetary policies by the US...

Malaysia-based Eco World Capital Berhad, the wholly-owned subsidiary of Eco World Development Group Berhad (EcoWorld), has announced the successful issuance of its maiden offering of five-year tenured MYR 550 million (USD 106 million) Sukuk under its MYR 1.2 billion (USD 254) Sukuk Wakalah Programme, as per a filing with Bursa Malaysia. Why it Matters? Proceeds from the offering will be used for investments that adhere to Shariah, capital expenditures, and working capital needs. Additionally, it will be used for general corporate purposes, and the refinancing of any out...

Dato' Paduka Syed Mashafuddin Syed Badarudin has been named by Affin Bank Bhd as the new Chief Executive Officer (CEO) of Malaysia’s Affin Islamic Bank, with effect from the 8th of November 2022. Why it Matters? Syed Mashafuddin, who recently left his position as CEO of CIMB-Principal Islamic Asset Management Sdn. Bhd., brings 25 years of expertise in the financial industry to the new title and is expected to support Affin Islamic's A25 strategic strategy and its provision of customer experience and digital services, according to Affin Bank President and Group CEO, Dat...

Saudi Arabia's Alrajhi bank has announced the introduction of its perpetual Saudi Riyals denominated Tier 1 Sukuk on the 30th of October 2022, callable by the bank in five years to grow its business and provide investors with reliable income on a regular basis. Why it Matters? The Sukuk was issued after getting approval from the Capital Markets Authority for the public offering on the 20th of October 2022 and comes as a result of the bank's successful prior private issuance in January 2022 and the sizeable investor turnout. The offering will be listed on the Saudi Stock Exch...

The International Energy Agency’s Net Zero 2050 initiative outlined the need to end financing for new oil & gas projects in order to keep climate change to under 1.5° C, but investors and regulators worry about the macroeconomic risks that could result from an unmanaged exit from fossil fuel projects rather than orderly transitions. Could regulatory action end up mitigating some ‘divergent Net Zero’ risks? Global ambition to curtail climate change to 1.5° C may trigger more macroeconomic and financial stability concerns than regulators are comfortable withFin...

The Islamic Development Bank (IsDB) has announced its approval of a USD 1.8 billion loan to the Federal Government of Nigeria to finance key projects in the country, according to Dr. Muhammad Al Jasser, IsDB President and Group Chairman, at a meeting with Zainab Ahmed, Minister of Finance, Budget, and National Planning of Nigeria, on the 24th of October 2022 in Abuja. Why it Matters?  IsDB had a USD 1.2 billion portfolio in 15 states of the federation in Nigeria, of which it has completed 35% of projects. The bank hopes to advance its bilateral and regional projects with the...

The global takaful insurance market has generated USD 24.85 billion in 2020 and is projected to generate USD 97.17 billion by 2030, at a Compound Annual Growth Rate (CAGR) of 14.6% from 2021 to 2030, according to the report published by Allied Market Research. Why it Matters? The global takaful insurance market is expanding as a result of takaful insurance's acceptance in non-Muslim nations and its added advantages over traditional insurance. However, a lack of market participants and little consumer awareness hamper industry expansion. On the other hand, improvements in governme...

By Dr. Eman Tabet, Research Associate, RFI FoundationEmerging market financial institutions considering financial risks related to climate change will benefit from some harmonisation of climate scenarios. However, many are more susceptible to physical risks and specific types of transition risk. It is important that the scenarios used for climate risk-related assessment and response are relevant to emerging markets and do not contribute to unevenly shifting transition risk from developed to emerging markets.  Climate models used to create climate scenarios by organisations such as th...

The first half of 2022 saw a total of USD 4.4 billion in green and sustainability Sukuk issuance, accounting for 4% of all Sukuk issuance and 1% of environmental, social, and governance (ESG) bond issuance. This comes after a record-breaking annual issuance in 2021 of USD 6.1 billion, according to the Green and Sustainability Sukuk Report 2022: Financing a Sustainable Future by High-Level Working Group (HLWG). Why it Matters? The first green Sukuk, which raised USD 58 million, was issued five years ago in July 2017. During this time, green and sustainability Sukuk have advanced signi...

The Government of Bangladesh has announced its intention to issue Sukuk worth BDT 150 billion to fund three ongoing development projects, according to government officials.  Why it Matters? Bangladesh relies on revenue collection, treasury bills and bonds, bank loans, and savings certificates to cover budget spending. As revenue collection has fallen short of projections and project costs are rising, government officials are now looking for long-term financing of key projects through Sukuk. The new Sukuk financing is anticipated to finance nearly half of three projects...