Malaysia

Malaysia: Aberdeen Islamic Asset Management - strategy

Racheal Lee Mei Nyee reported on 16 February in The Edge Daily, that Aberdeen Islamic Asset Management Sdn Bhd aims with the new licence to approach retail investors and launch funds, which it could not do under the conventional licence. The company is seeking seed funding from institutional investors first and look at retail funds only later.

Gerald Ambrose is managing director of Aberdeen Asset Management Sdn Bhd.

Bank Islam signs MoU with Bank Muamalat Indonesia for Estate Planning

Ellina Badri reported in The Edge Daily about the memorandum of understanding between Bank Islam Malaysia Bhd and Bank Muamalat Indonesia Bhd for the distribution of Islamic trust products.

Islamic trusts involve investments made following syariah principles and asset distribution according to Islamic rules of succession. The range of Islamic trust products include will-writing and estate administration services, and waqf, or a gift of property for religious or charitable purposes.

AmanahRaya-JMF looks into Islamic REITs

AmanahRaya-JMF Asset Management Sdn Bhd, which currently manages RM 7.5 bn in funds, is looking at going into Islamic real estate investment trusts (REITs) in the next two or three years, says managing director/chief executive officer Sharizad Jumaat, and exclude non compliant components by 2011.

Kuwait Finance House Malaysia more than doubles paid up capital

Kuwait Finance House Malaysia said last Friday it has received a USD 300 mn capital injection from its parent, increasing the paid-up capital to USD 500 mn.

PLUS plans RM 1 bn Sukuk sales to pay debt, fund projects

PLUS Expressways Bhd, Malaysia’s largest toll-road operator, plans to sell RM 1 bn, 5-year Sukuk to help repay maturing debt and finance expansion projects. Bank Islam Malaysia Bhd and CIMB Islamic Bank Bhd supports the sale of the Sukuk. The company aims to raise RM 350 mn in the coming months to refinance debt maturing in June and to raise another RM 200 mn in the second half of the year to fund a road project in Indonesia.

Asian Finance Bank may halve the size of its planned aviation fund

Loh Li Lian reported on 4 February on Reuters that Malaysian Asian Finance Bank may halve the size of its planned aviation fund to RM 500 mn (USD 138.2 mn) according to Mohamed Azahari Kamil, the chief executive officer of the bank.

PT Bank Negara Indonesia to sell sukuk in Malaysia

Business Times reported on 30 January PT Bank Negara Indonesia, the nation’s third-largest state financial services company, plans its first Islamic debt sale in Malaysia, president director Gatot Suwondo said.

Plans are about USD 50 mn, with a 5-year and 10-year maturity if the pricing is attractive.

Securities Commission, Malaysia Approves 3 New Foreign Islamic Fund Managers

News Agency Bernama reported on 29 January that 3 new foreign Islamic fund management companies (IFMCs) have been approved by the Securities Commission to start operations in Malaysia:

The new companies are Aberdeen Islamic Asset Management Sdn Bhd, BNP Paribas Islamic Asset Management Sdn Bhd and Nomura Islamic Asset Management Sdn Bhd; the others who have been approved to establish operations are Kuwait Finance House (Malaysia), DBS Asset Management, CIMB-Principal Asset Management, Global Investment House and Reliance Asset Management.

Allianz SE Life Reinsurance approval to establish a separate fund to support for Family Re-Takaful

Allianz Re has announced that Allianz SE Life Reinsurance Branch Labuan (ARLL), recently recieved regulatory approval to establish a separate fund to support the life and health retakaful business (Family Retakaful). As a branch office of Allianz SE, ARLL enjoys an S&P rating of "AA" and A.M.Best rating of "A ". ARLL will offer retakaful solutions to Family Takaful providers.

Axis REIT considers Islamic financing

The Star Malaysia reported on January 24 that AXIS Real Estate Investment Trust (REIT) is looking at various options to raise capital, including Islamic financing, to buy more properties. The REIT became Sharia compliant last December.

CEO is Stewart LaBrooy.

Malaysia Bina Puri unit gets Islamic financing

A unit of Malaysian builder Bina Puri Holdings Bhd has secured RM 1.04 bn of Islamic financing to build a highway, Reuters citing Bernana, the official news agency.

Singapore's Agni Inc plans sukuk deals

Singapore renewable energy firm Agni Inc will sell more than RM 900 mn Sukuk Al Ijara according to a Malaysian newspaper.

HLTM Takaful launches capital protection investment-linked scheme

HLTM Takaful launches capital protection investment-linked scheme called The Alpha Crescent Investment Plan, which is a 3-year 100% capital protected plan. It is based on the concept of murabahah and wa’ad where the potential investment returns at maturity were referenced against the performance of the Alpha Crescent Index.

HLTM Takaful, which is managing the plan, said it would be distributed by Hong Leong Bank Bhd.

HLTM Takaful chief executive officer is Ab Latiff Abu Bakar.

USD 158 mn AirAsia sukuk issue approved

Trade Arabia reported on 28 April that the RM 500 mn Sukuk issues is approved by the market regulator.

Bank Islam Malaysia and Kuwait Finance House (Malaysia) are the joint principal advisers, lead arrangers and lead managers for the issue.

Kuwait Finance House shall be the guarantor for the sukuk programme. Malaysian Rating Corp has assigned a long-term rating of AA+(bg) for the issue.

Source: http://www.tradearabia.com/news/newsdetails.asp?Sn=CM&artid=142568

CIMB to expand Islamic banking in Middle East

The Star Malaysia reported on 22 April that CIMB group intends to expand its Islamic banking business in Dubai and Saudi Arabia via acquisitions.

The group via Bumiputra-Commerce Holdings Bhd recently acquired a 19.99% stake in China-based Bank of Yingkou Co Ltd.

CIMB group chief executive is Datuk Nazir Razak.

Source: http://biz.thestar.com.my/services/printerfriendly.asp?file=/2008/4/22/b...

Takaful Ikhlas Targets RM 70 mn in premium from its government housing loan

Mahanum Abdul Aziz reported on 19 April on Bernama that Takaful Ikhlas Targets RM 70 mn in premium from its government housing loan scheme.

Syed Moheeb Syed Kamarulzaman is president and chief executive officer.

Source: http://www.bernama.com.my/bernama/state_news/news.php?id=327888&cat=st

Litrak Fully Redeems Senior And Junior Debt Issues

Bernama reported on 18 April that Lingkaran Trans Kota Sdn Bhd (Litrak) fully redeems senior and junior debt issues.

RAM said, it will maintain surveillance on the AA2 ratings of Litrak's Sukuk Musyarakah Islamic Medium-Term Notes I Programme of up to RM1.15 billion and Sukuk Musyarakah Islamic Medium-Term II Programme up to RM300 million, as well as the P1 rating of the company's Islamic Commercial Papers Programme of up to RM100 million.

All the long-term ratings have a stable outlook, it said.

Source: http://www.bernama.com.my/bernama/v3/news_business.php?id=327699

British Islamic Insurance Holding undertakes Private Placement

Gan Yen Kuan reported on 10 April in The Edge Daily that MNRB Holdings Bhd has proposed to invest GBP 8.96 mn in the non-listed British Islamic Insurance Holdings Ltd (BIIH), being an equity stake of maximum 9.99 % based on a private placement effort. MNRB aims to diversify the business and to expand into international business and the potentially lucrative market in Europe.

MNRB is Malaysia’s largest re-insurer.

BIIH has an authorised share capital of GBP 100 mn. Its issued and paid-up share capital is GBP 4.1 mn with a share premium of GBP 42.1 mn. It is incorporated on 27 February 2006.

BIIH has two wholly owned subsidiaries, namely BIIH General Ltd (BIIG) and BIIS Ltd., both have yet to obtain permission from the UK’s Financial Services Authority (FSA) to carry out their respective business in general insurance and insurance intermediation services.

BIIH is unlisted but aims to be listed on the Alternative Investments Market in London and on one or more suitable GCC based exchanges later.

Source: http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Artic...

CIMA launches qualification in Islamic finance

Joyce Goh reported on 9 April in The Edge Daily, that Chartered Institute of Management Accountants (CIMA) launches qualification in Islamic finance.

CIMA’s new qualification comprises four modules: Islamic commercial law; Islamic banking and takaful; Islamic capital markets and instruments; and accounting for Islamic financial institutions.

CIMA’s director of education is Robert Jelly. CIMA divisional director is Sopiah Suid, CIMA Malaysia's president is Michael Eow.
Deputy Finance Minister attented the signing: Datuk Ahmad Husni Hanadzlah. Dr Mohd Daud Bakar is president and CEO of IIIF.

Source: http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Artic...

New IFSB documents on Capital Adequacy and Liquidity Management

The Islamic Financial Services Board (IFSB) released on 1 April that the IFSB Council adopted two documents to further facilitate efforts towards enhancing the soundness and stability of the Islamic financial services industry.

In its 12th meeting held at the Islamic Development Bank's (IDB) headquarters in Jeddah on March 26th 2008, the Council of the Islamic Financial Services Board (IFSB) resolved to approve two documents that aim to further facilitate efforts towards enhancing the soundness and stability of the Islamic financial services industry. The two documents are:

Guidance Note in Connection with the Capital Adequacy Standard: Recognition of Ratings by External Credit Assessment Institutions (ECAI) on Shari'ah-Compliant Financial Instruments (Guidance Note)

Technical Note on Issues in Strengthening Liquidity Management of Institutions Offering Islamic Financial Services: The Development of Islamic Money Markets (Technical Notes)

Guidance Note in Connection with the Capital Adequacy Standard: Recognition of Ratings by External Credit Assessment Institutions (ECAI) on Shari'ah-Compliant Financial Instruments (Guidance Note)

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