Without a way to harmonise the content of transition plans, such as those GFANZ outlines as current standard practice, banks are likely to ignore most of what their customers are doing, which erodes the effectiveness of their own Net Zero finance strategies. With a proliferation of Net Zero pledges, financial institutions are grappling with how they will evaluate the plans they receive from customers without adding substantial time and cost to the processGFANZ guidance on financial institution reviews of customer transition plans will help lay the groundwork for greater harmonisation &nda...

The Kingdom of Saudi Arabia’s (Saudi Arabia) National Debt Management Center has announced the closure of its October SAR-denominated Sukuk worth SAR 3.12 billion (USD 832 million), as per a statement by the establishment on the 18th of October 2022. Why it Matters? The offering received SAR 700 million (USD 186 million) in total bids and was made up of three sukuk tranches. The first tranche is worth SAR 300 million (USD 80 million) and matures in 2029; the second tranche is worth SAR 300 million (USD 80 million) and matures in 2032. The third tranche is worth SAR 100 mill...

The Bangladesh Securities and Exchange Commission (BSEC) is set to establish a Shariah council in conformity with a new regulation designed for the purpose of accommodating more Shariah-based investors and enhancing the quantity of Shariah-based securities in Bangladesh's market Why it Matters?  In the past five years, Bangladesh’s stock market has seen the issuance of new Shariah-based products such Sukuk, perpetual Mudaraba bonds, and Shariah-compliant mutual funds. Any disagreement or issue developing in the management of these securities, however, could not be sett...

Sukuk financing in Nigeria saw a 305.51% increase in the second quarter of 2022 (2Q 2022), rising from NGN 8.17 billion (USD 18.71 million) in the first quarter of 2022 (1Q 2022) ended March to NGN 33.13 billion (USD 75.87 million). Why it Matters? The Nigerian federal government issues a certificate of ownership to an investor when they purchase Sukuk with the promise to buy back the Sukuk at a particular future date in a legally-binding pledge. The funds are invested in assets all throughout Nigeria and investors earn rental income on their investments which is deposi...

The waiting list for Australia’s first Islamic bank, Islamic Bank Australia (IBA), continues to grow with nearly 8,000 people in anticipation of the bank's official launch. The bank was granted a restricted authorised deposit-taking institution (ADI) licence by the Australian Prudential Regulation Authority (APRA) in July 2022 and targets to open to the public by 2024.Why it Matters? Although Australia already has a number of non-bank lenders who provide halal financing choices, the proposed bank would be the nation's first institution of its kind. Many Australian Musl...

The Saudi Real Estate Refinance Company (SRC), the Public Investment Fund's (PIF) wholly owned subsidiary, has announced the issuance of SAR 3 billion (USD 800 million) worth of Sukuk denominated in the Saudi riyal, as part of its recently upsized Sukuk programme, as per a statement by the entity on the 11th of October 2022.  Why it Matters? The issuance represents the fifth in the series under the programme and has a 10-years tenor offered at a fixed profit rate. The SRC will use the funds raised to support originators, financiers, and improve market liquidity, which will s...

Annual financial value of Zakat and voluntary giving is anticipated to grow over the next five years. Growth of fintech firms and digitalisation of financial services as the key contributor to expansion of voluntary giving. This research was conducted among 346 leading Islamic finance professionals working across sectors by IslamicMarkets.com during August 2022.  Developments in fintech and digitalisation will be a major contributor to growth in the annual financial value of Zakat, as well as voluntary giving such as Sadaqah donations and Waqf endowments.  &nb...

Investment in Islamic finance is expected to increase dramatically over the next five years. This growth in investment is set to be driven by the dramatic expansion in the sector, among other factors. This research was conducted among 346 leading Islamic finance professionals working across sectors by IslamicMarkets.com during August 2022.  The strong growth of the Islamic finance sector is proving increasingly attractive to private equity (PE) and venture capital (VC) investors, according to the research.   The research, conducted by IslamicMarkets.com...

Malaysia-based Amanat Lebuhraya Rakyat Berhad (ALR) has announced the successful pricing of AAA-rated Sustainability Sukuk Murabahah with a nominal value of MYR 5.5 billion (USD 1.2 billion), under its Sustainability Sukuk Murabahah Programme, to fund the purchase of four major highways in the Klang Valley, on the 23rd of September 2022. Why it Matters?  ALR was created with the goal of acquiring four highway toll concessionaires as part of a toll restructuring plan submitted to the Malaysian Ministry of Works. A conditional bid was made by the entity on the 4th of April 202...

ADI Capital, Abu Dhabi Islamic Bank-Egypt's (ADIB-Egypt) investment banking arm, has announced the successful completion of an EGP 2 billion (USD 102.3 million) joint Islamic financing agreement to support Egypt-based Elsewedy Electric’s affiliate companies on the 27th of September 2022. Why it Matters? A banking consortium led by ADIB will provide the financing which will be channelled by Elsewedy Electric for the expansion of its activities as well as those of its subsidiaries, covering working capital needs, facilitating workflow, and the import of raw materials. Accordi...