AmIslamic to venture into Zambia
AmBank Group was working closely with the Zambia Malcolm Group to establish an Islamic bank in the African country. No official announcement had been made.
Japanese Sukuk
Tokyo-based Japan Bank of International Co-operation (JBIC) would issue US$300 million (RM1.1 billion) to US$500 million (RM1.84 billion) of Sukuk in Malaysia.
Cagamas Islamic arm planned
Cagamas will set up a fully fledged Islamic arm to separate its Islamic transactions from its core business dealings. Currently it handles all Islamic deals parallel with conventional dealings, in a similar manner to the window system applied by some conventional banks.
KFH hedging solution launched
Kuwait Finance House Malaysia (KFH) launched a Shariah compliant foreign exchange hedging solution, which allowed customers to protect themselves against unexpected movements in foreign currency.
PLUS bond sale targets Middle East
PLUS Expressways intended to sell US$1.63 billion (RM6 billion) in bonds during September to attract investors from the Middle East. The bonds would be structured according to the principle of Musharakah, specifically to make them acceptable to Middle Eastern investors.
SC and DFSA ink MoU
The Securities Commission and the Dubai Financial Services Authority (DFSA) signed a Memorandum of Understanding (MoU) to improve co-operation between the Malaysian and the Dubai regulators.
Bursa to launch Islamic indices
Bursa Malaysia was in discussions with FTSE to develop and launch a new set of Islamic indices, which would be part of the second phase of the FTSE Bursa Malaysia Index Series, targeted to be launched by the end of the year.
Islamic hedging tool
An Islamic financial hedging tool was introduced by Standard Chartered Malaysia and Bank Islam Malaysia, enabling the two banks to better manage their portfolio of risks by benefiting from lower exposure from either fixed or floating rates from a Wiqa Forward Rate Agreement.
Crude palm oil Murabahah
Bank Negara Malaysia’s Murabahah instrument will use crude palm oil (CPO) as the underlying transaction tool, making it the first CPO-based Murabahah transaction.
KFH in I-REITS discussion
Kuwait Finance House was in discussions with various undisclosed government-linked companies over how to structure Islamic Real Estate Investment Trusts (I-REITs) to attract foreign direct investments.
RHB Islamic looking at Saudi deals
RHB Islamic Bank was looking at forming strategic alliances in Saudi Arabia, possibly to set up an Islamic investment bank in the region.
Khazanah to sell Islamic securities
Khazanah National would continue to support more international Islamic issues, intending to promote Islamic products both domestically and globally.
MIFC to help Malaysia’s hub pledge
“MIFC is a major announcement. This is recognition of Malaysia as a major player in the Islamic finance globally.” Nazir Razak, CIMB group chief executive officer.
“The initiative will attract more international funds, especially from West Asia, to Malaysia.” Zarir J. Cama, HSBC Bank Malaysia CEO.
Islamic unit trusts grow 59%
Shariah based unit trusts in Malaysia achieved a compound annual growth rate of 59% between 1992 and 2005. However, their net asset value (NAV) of US$2.33 billion (RM8.6 billion) accounted for only 8.5% of the industry NAV.
KL identified as Citigroup’s Asian IB unit
Citigroup identified Kuala Lumpur as the base for its Islamic banking unit in Asia.
Oasis to step up presence in Asia
Oasis Group Holdings, fund manager for Malaysia’s first global Islamic equity fund, would use its link with AmInvestment Group as a base to widen its presence in Asia.
CIMB to go Islamic in Thailand
CIMB had plans to set up an Islamic finance banking business in Thailand.
Chinese Islamic bond
Kuwait Finance House was finalizing an Islamic bond issue for a Chinese state owned company. The bond was expected to be issued through a Labuan registered special purpose vehicle and would allow the Chinese power company to tap investors from the oil-rich Persian Gulf.
AirAsia flies with Islamic loans
A US$230 million (RM845.74 million) Islamic loan was secured by AirAsia to purchase more planes. The Islamic loan was being arranged by Kuwait Finance House, which would pay for six of 100 Airbus 320 planes that AirAsia has committed to buy.
Glomac to sell Islamic bonds
Property developer Glomac proposed to issue US$48 million (RM175 million) of Islamic Murabahah underwritten notes and Murabahah medium-term notes facilities to fund a new residential project and repay loans.
AmMerchant approved for equity ETF
The Securities Commission approved AmMerchant Bank to establish and list Malaysia’s first equity exchange traded fund (ETF) on the Bursa Malaysia main board.
Islamic bonds sold to refinance debt
Debt plagued steel miller Perwaja was to sell US$109.23 million (RM400 million) in Islamic bonds to refinance its debts, which will be repaid over a 10-year period.
AmIslamic moves to niche markets
AmIslamic Bank was seeking to provide more innovative offerings and enter niche markets such as equity financing to distinguish itself from its competitors. The bank wanted to strengthen its presence with Musharakah offerings.
Sukuk issues soar
Sukuk issues totaling US$12.1 billion (RM44.49 billion) were closed in the Middle East and Malaysia in the first half of 2006. Malaysia remains the leader, closing US$6.9 billion (RM25.37 billion) of Islamic debt deals during the first half, in 28 separate transactions.
Al Aqar KPJ REIT oversubscribed
The public issue of 15 million shares of Islamic healthcare real estate investment trust (I-REIT), Al Aqar KPJ REIT, was oversubscribed by 4.13 times. It received 9,941 applications worth over US$19.87 million (RM73.1 million), as against the issue size of US$3.89 (RM14.3 million).
Nepline Sukuk obtains SC approval
Nepline SPV obtained approval from the Securities Commission on the proposed issuance of US$46.3 million (RM170 million) Sukuk Ijarah.
Affin Islamic to go nationwide
Affin Islamic Bank targeted to have nationwide presence within four years, with new branches opened at a cost of US$136,000 (RM500,000).
TAKAFUL briefs
KFH allies with Takaful firms
Kuwait Finance House (KFH) made an agreement with three of Malaysia’s Takaful operators – Syarikat Takaful Malaysia, Takaful Nasional and Takaful Ikhlas – to provide Islamic insurance products.
Foreign ownership of insurers up
Bank Negara Malaysia governor Dr Zeti announced that the limit for foreign ownership in local insurance companies would be raised from 30% to 49%.
Bank Negara Takaful report
Bank Negara Malaysia’s latest Takaful Annual Report – for 2005 – showed that the market penetration of Takaful in Malaysia increased only by 0.5% in 2005 on the year before.
HSBC Amanah Takaful debuts
HSBC Amanah Takaful (Malaysia) was fully registered by Bank Negara Malaysia and would be open for new business in September.
Prudential BSN Takaful launched
Prudential plc and Bank Simpanan Nasional (BSN) launched a joint venture Takaful operation – Prudential BSN Takaful, in which BSN and Prudential held 51% and 49% respectively.
Guidelines for Takaful operators
Soon to be released guidelines for Takaful operators set the parameters within which Takaful operators must operate.
They would also permit the different Takaful models currently adopted by the respective players to continue to operate. |
