Islamic Development Bank (IDB)

IRTI-IDB and BCEAO organize first regional #consultation on #Sukuk Model Law

The Islamic Research and Training Institute (IRTI) and the Islamic Development Bank (IDB) have organised a regional consultation workshop on the Sukuk Model Law Project. Partner of the workshop was the Central Bank of West African States (BCEAO). The workshop was held at the BCEAO headquarters in Dakar, Senegal from 23-24 January 2017. The objective of the Project is to create a model Sukuk law and guidelines that leverage global best practises for creating a legal framework for Sukuk issuance and regulation. Subsequent regional consultations are planned for South East Asia, Central Asia and the MENA regions. IRTI Director General, Prof. Mohamed Azmi Omar, said the workshop reaffirmed the importance of Sukuk as an emerging instrument of resource mobilisation.

Awqaf and Minors Affairs Foundation signs #agreement with Islamic Development Bank

Awqaf and Minors Affairs Foundation (AMAF) has signed a Memorandum of Understanding (MoU) with the Islamic Development Bank (IDB) to collaborate in areas related to endowment services enhancing the prosperity of Muslim societies. Tayeb Al-Rais, Secretary General of AMAF, and Dr Bandar Al Hajjar, Chairman and President of IDB, signed the MoU in Jeddah, Saudi Arabia. The two parties will work towards maximising the availability of Islamic banking services to the endowment sector. AMAF and IDB will also explore the possibilities of forging endowment partnerships and engaging third parties. Other areas of cooperation include building successful marketing strategies and providing advanced endowment tools for banking, finance, and investment.

IDB #Infrastructure #Fund II takes equity stake in Utico

ASMA Capital owned by the Islamic Development Bank (IDB), Saudi Arabia’s Public Investment Fund (PIF) and Public Pension Agency (PPA), Ministry of Finance of Bahrain and Ministry of Finance of Brunei has signed a deal with Utico for a significant minority stake. The deal with Utico for a stake in its water business is done through Asma Capital managed IDB Infrastructure Fund II. The deal is valued overall at $ 147 million in equity and project finance and will be completed in the first quarter of 2017. Ernst & Young, Hatch USA, ILFS, GU Advisory UAE, Latham and Watkins, Trowers and Hamlins and Taylor Wessing are advisers to the deal. Utico is making significant investments in the UAE and expanding its infrastructure assets in water, power, transmission and distribution, storage, billing and collection. Richard Menezes, Utico’s Managing Director stated that its model of development has saved the governments billions of dirhams in capital expenditure and subsidies.

Trump election win delays planned MidEast #sukuks, bonds

The unexpected victory of Donald Trump in the US presidential election caused the Islamic Development Bank (IDB) to wait a bit longer to assess the impact on the regional bond market. IDB will announce this week plans for investor roadshows covering its planned sukuk sale. The issue, expected to be in excess of $1 billion, is one of the few remaining debt sales likely to be completed in the Middle East before the end of this year. Some Middle Eastern bond transactions for which banks had already been mandated have been put on hold and potential borrowers have decided to wait until January to see how markets perform. In addition to the IDB, Abu Dhabi airline Etihad is also expected to launch a sukuk issue soon, likely to be in the $1 billion region. The bond is expected to be executed later this week.

Islamic Development Bank appoints nine banks for five-year #sukuk -bankers

The Islamic Development Bank (IDB) has appointed nine banks to arrange a new Islamic bond issue likely to be in excess of $1 billion. The mandated banks include Boubyan Bank, Credit Agricole, Gulf International Bank, JP Morgan, Mizuho, Natixis, NBAD, RHB and Standard Chartered for a five-year debt issue. The mandate was given at the end of last week and the notes will be sold only after the U.S. elections on Nov. 8. IDB sold its last U.S. dollar-denominated sukuk in March. That issue, of $1.5 billlion, offered 50 basis points over midswaps and was priced at par at 1.775 percent.

IDB’s endowment fund to boost NGOs in #India

Muslim NGOs in India will be able to make use of Islamic Development Bank’s Awqaf Properties Investment Fund (APIF) to develop their endowments and generate funds for their various community development projects. According to Zafar Javeed, IDB’s national convener for India, APIF is in the process of identifying viable endowment projects. Javeed commended IDB group for financing about 300 educational and health-related projects across India over the past three decades. He said that the IDB was a big blessing for the Muslim community in India and there were many projects in the pipeline awaiting IDB aid. Referring to ongoing efforts to introduce interest-free banking in India, Javeed said former RBI governor Reghuram Rajan had hinted at introducing the system to achieve inclusive development.

Credit Agricole to Open #Morocco’s First Islamic Bank

Moroccan state-owned bank Credit Agricole (CAM) received the approval of the Ministry of Finance to open an Islamic subsidiary with The Islamic Development Bank (IDB). Credit Agricole will reportedly own 50% of the Islamic banking window as a joint venture with the IDB with an initial capital of 200 million dirhams. The two institutions have expressed plans to raise it to 400 million dirhams eventually. The central bank said earlier this year it had received seven requests to open Islamic banks and three to open windows selling Islamic finance products.

Credit Agricole authorised to establish Islamic banking unit

Moroccan state-owned bank Credit Agricole (CAM) has won authorisation to create an Islamic subsidiary with The Islamic Development Bank (IDB). Morocco’s central bank is in the final stages of launching an Islamic finance industry. The North African kingdom adopted legislation allowing Islamic banks and insurers in the domestic market, and the central bank has set up a central sharia board to oversee the new industry. IDB and CAM will inject 200 million dirhams ($20.55 million) of capital into the offshoot of the new subsidiary before doubling it to 400 million later. The Moroccan bank will hold 51% stake in the new banking unit.

Islamic Banking Will Strengthen Democracy In #India

The Islamic Development Bank (IDB) is getting the final touch in before setting up office in India. With introduction of Islamic banking, Indian government will certainly gain diplomatic upper hand to make financial dealings with Muslim dominated nations. Islamic Banking will clearly ameliorate the deplorable condition of the poor and marginalized segments of society. However, it won't be very surprising to see if this banking system is turned into a political issue. Certain parties might abhor the use of the word "Islamic" and could term it as anti-Indian. They might argue that the very concept of Sharia banking would go against the secular fabric of the country.

Islamic Development Bank backs #Turkey's steps for stable growth

Islamic Development Bank (IDB) President Ahmad Mohamed Ali Al Madani has said they are ready to support Turkey to maintain the country's stable investment environment in the wake of the July 15 coup attempt. Al Madani said that the Turkish government has continued to promote domestic and foreign investments by boosting the liquidity of its markets to minimize short-term risks since the coup attempt. He noted that the establishment of the Sovereign Welfare Fund (SWF) is an extremely important development as it will help the government transfer its achievements to strategically important sectors. Al Madani remarked that Turkey will maintain its 3 to 4% growth rate despite its dependency on foreign energy.

IsDB, Gates Foundation Support New Program for Women Scientists in Middle East, North Africa

The International Center for Biosaline Agriculture (ICBA) launched today a new major regional program to empower young Arab women scientists. Funded by the Islamic Development Bank (IsDB) and the Bill & Melinda Gates Foundation, the Young Arab Women Scientists Leadership (Tamkeen) Program is the first of its kind in the Middle East and North Africa (MENA) region. IsDB Department Director Osman El-Feil said that empowering women with the right skills in agricultural research will contribute to alleviating poverty and making food available to the poor. The Program will also help to identify and empower groups of women champions and build a critical mass of pathfinders.

Islamic Development Bank to finance TAPI pipeline

The Islamic Development Bank (IDB) will take part in financing of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline’s construction. Economic feasibility of the TAPI project is confirmed by experts of the countries participating in the project and independent international experts. They testify to the guaranteed capacity of Turkmenistan to ensure long-term gas supply via this route. The development of Galkynysh field envisages 33 billion cubic meters of natural gas per year. Turkmengas state concern has announced a tender for the provision of services on project management, which will be implemented with the participation of the IDB. The project is expected to be completed in late 2019.

Islamic Development Bank to finance TAPI pipeline

The Islamic Development Bank (IDB) will take part in financing of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline's construction.

IDB offers to increase support for Jaiz Bank

The Islamic Development Bank (IDB) has promised to continue its support for Jaiz Bank Nigeria given that that Jaiz bank now has a national licence. IDB president Ahmad Mohamed Ali assured officials that IDB as an institution will continue to assist the Jaiz Bank. Chairman of the Jaiz Bank, Alhaji Umar Mutallab said with Jaiz bank’s newly acquired national licence from the Central Bank of Nigeria, the bank will soon start rolling out services nationwide. IDB is a shareholder in the Jaiz bank.

Moody's: IsDB's strong shareholder support and capital base support its credit profile

According to Moody's latest report, the Islamic Development Bank's (IsDB) credit profile is supported by its strong shareholder support, robust capital base and prudent financial and risk management policies. While facing a risky operating environment due to geopolitical tensions in the MENA region and lower oil prices, the IsDB's operational assets continue to perform well. The bank's gross operational assets have been steadily growing over time and rose 11.7% year-on-year in 1436H, but the pace of that growth will likely slow in the next few years. The overall credit quality of the bank's portfolio is solid, well diversified in different countries and sectors. Its liquidity is solid, with liquid assets making up 23.6% of total assets.

VHP against Islamic Development Bank’s plan to open branch in #India

Vishwa Hindu Parishad expressed reservations over the Islamic Development Bank’s plan to open its branch in India. VHP joint general secretary Surendra Jain is currently attending a two-day meeting in Ahmedabad to discuss various issues. He said they will also deliberate on the strategy to oppose the opening of the new branch. Although IDB recently announced that it will open its first Indian branch in Ahmedabad, VHP insists that such banks are against the Constitution and banking norms set by RBI.

MY Dealbook: Maxis plans $2.5b #sukuk, IDB to float bonds worth $86.6m

Maxis Broadband, a unit under telecommunications group Maxis, is planning a sukuk issuance to raise as much as MYR10 bn for acquisitions and capital expenditure. CIMB Investment Bank is the sole principal adviser and sole lead arranger for the programme, while CIMB Islamic Bank is the shariah adviser for the programme. The Islamic Development Bank (IDB) has issued a MYR350 mn ($86.6 mn) sukuk for project financing and other development activities. IDB president Ahmad Mohamed Ali said the successful issuance of sukuk in Malaysian Ringgit is a testimony to the increasing interest for sukuk.

Islamic banking catches on

A Memorandum of Understanding was signed between the Islamic Development Bank (IDB) and India’s EXIM Bank, which enables IDB to open its first branch in Ahmedabad. During Prime Minister Narendra Modi’s visit to Saudi Arabia there were a wide range of discussions on business and investment in the background of the Kingdom’s $2 trillion Public Investment Fund. Islamic banking could restore equilibrium in Indian society by providing succour to debt-ridden farmers, labourers and other marginalised groups. Hence, Islamic banking has potential as a tool of financial inclusion.

BB asks Al-Arafah not to sell stake to foreign investors

Bangladesh Bank did not allow Al-Arafah Islami Bank to sell 10% of its shares to the Islamic Development Bank (IDB). The deal was originally signed in March to invest about Tk 155 crore to acquire a 10% stake in Al-Arafah. Al-Arafah was supposed to issue around 11 crore fresh shares worth Tk 10 each with a premium of Tk 4, in a bid to raise its capital. The board of Al-Arafah is divided over the issue of selling a 10% stake, particularly on the issue of giving veto power to IDB. The aggrieved group had also taken the issue to court opposing the veto power.

Islamic banking set to launch in #India amid controversy

India will get its first taste of sharia-compliant banking when the Islamic Development Bank launches operations in the state of Gujarat. No date has yet been announced, but already complaints have emerged within the ruling Hindu nationalist Bharatiya Janata Party. Prominent BJP politician Subramanian Swamy says Islamic banking goes against India’s principles of secularism. India's prime minister Narendra Modi visited Saudi Arabia in April and signed an extensive agreement with the bank. Under the agreement, the IDB will establish its first Indian branch in the Gujarat city of Ahmedabad and go on to open more branches in India in the future.

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