IslamicFinance.de

Khazanah Nasional Bhd. will start marketing as much as 150 million ringgit ($42 million) of the seven-year sukuk on Monday, Chief Financial Officer Mohd Izani Ghani said. The offering will fund 20 schools in Malaysia, he said, adding that future sale options may include healthcare and affordable housing. While it would be a challenge convincing investors to buy because the concept is new, the offering will be a catalyst for further issuance in an area that’s still nascent. The SRI sukuk will pay fixed, periodical profit rates throughout the bond’s term, with principal repayments linked to the individual school’s performance in terms of the quality of education provided. Before maturity, the profit rate will be adjusted lower, he said.

Al Rayan Bank PLC, formerly known as Islamic Bank of Britain, has officially opened its new private banking branch in Knightsbridge, London. The flagship branch adds to Al Rayan Bank’s existing network of five branches and three agencies throughout the country. It will provide high net worth individuals and Gulf Cooperation Council (GCC) clients with private banking services including real estate finance, day-to-day banking services and bespoke investment opportunities. In 2014 the bank’s operating income increased by 168 per cent, customer financing increased by 86 per cent and retail deposits increased by 59 per cent. The bank also transformed a £5.5 million loss in 2013 to an after tax profit of £1.2 million, the first time in its eleven year history that it has posted a profit.

Mozambique will next month host the annual meeting of the Jeddah-based Islamic Development Bank (IDB), an event which is expected to be attended by 700 delegates. It will take place on 8 and 11 next June. Eduardo Macuà¡cua, Deputy Executive Director of the Confederation of Economic Associations of Mozambique (CTA) said that the private sector in coordination with the Government, through the Investment Promotion Centre, is already preparing to not only participate in meeting but also, and above all, present projects and business opportunities that the country offers, and perhaps form partnerships. To this end, the CTA is organizing the Private Sector Forum on 8 June, which discusses the role of the private sector in the development of the IDB member countries, particularly those in Africa.

Kuwait Finance House (KFH) is exploring the possible sale of assets including its Malaysia unit, as the Islamic lender looks for a leaner structure while seeking greener pastures through its Turkey franchise. KFH is restructuring activities ahead of a planned divestment by its largest shareholder, the Kuwait Investment Authority (KIA). The firm has hired Credit Suisse to advise on its options, including the potential sale of a Malaysia unit launched in 2005 that serves as a hub for southeast Asia. KFH did not give further details. A shift away from Malaysia, where KFH holds a valuable licence but lacks scale, would help it focus on Kuveyt Turk, the largest Islamic bank in Turkey with over 500 branches.

As Islamic finance regulators and thought leaders converge on the commercial capital of Kazakhstan, Almaty, for the 12th Annual Summit of the Islamic Financial Services Board (IFSB), the world of Islamic finance is buoyed by a series of encouraging developments in the weeks leading up to the Summit. The Summit is scheduled to be held on 20-21 May 2015. The transformational impact of the Islamic finance industry can only be truly enhanced inter alia if the requisite infrastructure is in place. As such, issues relating to ‘Core Principles for Islamic Finance: Integrating with the Global Regulatory Framework,’ the Summit theme, is pertinent and follows the adoption last month by the IFSB of a new Standard on Core Principles for Islamic Finance Regulation (CPIFR)(Banking Segment) (IFSB-17).

Under the patronage of His Highness Sheikh Mohammed bin Zayed Al Nahyan, Masdar Institute will be organizing the fifth commencement ceremony for the Class of 2015. His Highness Sheikh Abdullah bin Zayed Al Nahyan, UAE Minister of Foreign Affairs, will give the keynote address at the ceremony that will be held on 26 May at Emirates Palace in Abu Dhabi. More than 100 students from 36 countries including the UAE, are expected to receive their Master’s degrees across nine academic programs. Masdar Institute will also be celebrating the commencement of its first PhD graduates in Interdisciplinary Engineering at the ceremony. As of September 2014, the total number of enrolled students was 491, including 148 PhD students.

At its annual "Multaqa Sedco 2015", Sedco Holding Group has unveiled its growth strategy for 2025 through expansion of its investment ventures across the globe. The event gathered the Group's upper management, the heads of its operating companies, CEOs and senior executives, management boards, their partners along with the administrative cadre. Under the theme "Imagine Our Future with Synergy", the Group's thrust for the next decade was laid down with emphasis on teamwork, creativity and professional excellence as key to continuous growth and achievement of defined goals as enshrined in the company's "six values".

The Jeddah-based Islamic Development Bank has no immediate plans to issue short-term sukuk (Islamic bonds), leaving it to domestic and regional issuers to meet growing demand for liquidity management tools in the sector. Last year, the IDB said it aimed to issue its first short-term sukuk in 2014, adding to wider efforts to develop high-quality liquid assets (HQLAs) for Islamic banks to use, but at this stage such a programme is not planned. In the meantime, domestic regulators including Bahrain and the United Arab Emirates have expanded their Islamic liquidity tools in recent months. But there are concerns that such tools could be insufficient in times of market stress, when they are needed most.

QIB (UK), the London arm of Qatar Islamic Bank, has hired an experienced banker as its head of treasury. Anthony Lee joins the bank in London having previously served as head of treasury and investments at Doha Bank in Qatar. At QIB (UK), Lee takes over leading the treasury effort from Haissam Saleh, who has been acting head since July last year.

Amlak Finance plans to re-list its shares on the Dubai Financial Market this month after an absence of more than six years. The Sharia-compliant home finance company, in which Dubai’s Emaar Properties has a 45 per cent stake, had won shareholder approval last month to resume trading. Amlak completed a restructuring of US$2.7 billion worth of debt last August, paving the way for the firm’s shares, suspended since November 2008, to resume trading. Amlak yesterday reported a 62.5 per cent drop in first-quarter net profit to Dh6 million from Dh16m a year earlier. Revenue fell 15 per cent in the first quarter to Dh105m because of its decreasing real estate portfolio, the firm said.

After overcoming an array of uncertainties and legal combats and complexities, the first ever Islamic finance compliant project is all set to take off in Kerala. If things go as planned, the Waqf Land Development Scheme by the Cheraman Financial Services Limited (CFSL) will be soon materialized in Kannur in northern Kerala. Kicking start a new model of investment a five storied shopping complex will be erected in Kannur. The funding by the company has been done mainly through BOT (build, operate and transfer) and joint ventures. After creating value on the property and sharing the rental income for 18 years, CFSL will give back the property to the Waqf Board.

The Islamic Development Bank (IDB) is in discussions with Chinese officials to study the use of Islamic financing in the planned Asian Infrastructure Investment Bank (AIIB). The move could spur the use of sukuk (Islamic bonds), which have gained prominence as funding tools for a range of countries in recent years, and among multilateral lenders to help fund some of Asia's mounting infrastructure needs. A potential link-up between IDB and AIIB, which have 20 member countries in common, would also open a growing pool of capital in the hands of private-sector Islamic investors across the Middle East and Southeast Asia.

Iran may be about to restore banking links with the rest of the world after years of separation, but the process won't be easy. The Iranian banks' shaky finances and close ties with their government will increase the risks of dealing with them. And during their years of isolation, they have developed a version of Islamic finance that is in some ways markedly different from that practiced in other Muslim-majority states. The differences may make it hard for foreign banks, even ones from other big Islamic banking markets in the Gulf and southeast Asia, to do business in Iran. Major issues are the trading of debt and use of derivatives — these are two very complicated issues in any Islamic financial system, and in Iran we have very different approaches.

As Pakistan continued its trend of looking for a helping hand to increase foreign exchange reserves, this time will take a loan of $1billion from Islamic Development Bank (IDB) and ask China to extend its term of the previous $1billion loan it detained earlier. The move has also been taken to support rupee against Dollar by raising $2billion in its foreign resources in the financial year 2015-16. According to an official from the Ministry of Finance, the government will take $1billion from from International Islamic Trade Finance Corporation (ITFC) of the Islamic Development Bank to finance crude oil imports, which will lend the money under a short-term Murabaha financing arrangement.

Morocco's government adopted a bill on Thursday to regulate Islamic insurance, legislation that will face a final vote by parliament later this year. It is the last step in Morocco's legislative package to regulate the country's fledgling Islamic finance industry. Earlier this year, it issued a decree allowing the creation of a sharia board to oversee the sector. The bill adopted by the government goes into details on authorisations, takaful and retakaful products and operating process. Sharia-compliant insurance will be overseen by the same sharia board of Islamic scholars in charge of Islamic banking. The bill also includes some amendments of the law regulating the conventional insurance sector.

Syarikat Takaful Malaysia Berhad has revealed that it bought a RM85 million Islamic bond from 1Malaysia Development Berhad (1MDB) in 2009, but the Islamic insurance company assured that the investment was low-risk. Takaful Malaysia group managing director Datuk Seri Mohamed Hassan Md Kamil said the bond was purchased from Terengganu Investment Authority (TIA), which was 1MDB's previous incarnation. It was purchased at a coupon rate of 5.25% and will mature in 2039. The bond iis guaranteed by the government. Hassan said the sukuk only represented about 2% to 3% of its total asset base of RM7.1 billion. He said 1MDB had yet to redeem the bond.

The UN plans to launch a brand new plan for managing the entire globe at the Sustainable Development Summit that it will be hosting from September 25th to September 27th. Some of the biggest names on the planet, including Pope Francis, will be speaking at this summit. This new sustainable agenda focuses on climate change of course, but it also specifically addresses topics such as economics, agriculture, education and gender equality. For those wishing to expand the scope of “global governance”, sustainable development is the perfect umbrella because just about all human activity affects the environment in some way. 17 sustainable development goals are being proposed so far. This truly is a template for radically expanded “global governance”.

RepRisk and CSRHub have announced the findings of their joint research report on the link between perceived CSR performance and ESG-related reputational risk exposure. The findings show that correlations do exist between perceived CSR performance and reputational risk. It appears that companies with the most sources of sustainability ratings also have the highest risk exposure. In addition, the data indicates that companies that have strong CSR programs as measured by CSRHub, in the areas of Human Rights and Supply Chain, Leadership Ethics, and Resource Management, seem to have lower risk exposure, whereas those companies who have strong programs in Community Development and Philanthropy, Environment Policy and Reporting, or Compensation and Benefits seem to have higher risk exposure.

Iran may be about to restore banking links with the rest of the world after years of separation, but the process won’t be easy as its Islamic financial system has evolved in ways that will complicate ties with foreign banks. Smothered in bad debt and shut out of the global system by sanctions, Iranian banks badly need to resume business with foreign lenders, for whom this would be a huge opportunity. Iran’s Islamic banking assets totalled 17,344 trillion riyals as of March 2014, or $523 billion at the free market exchange rate. But the Iranian banks’ shaky finances and close ties with their government will increase the risks of dealing with them. And during their years of isolation, they have developed a version of Islamic finance that is in some ways markedly different from that practiced in other Muslim-majority states.

Bahrain's Khaleeji Commercial Bank (KHCB) launched a new corporate financing product, I'teman Financing, at a Press Conference that was held on Tuesday, the 12th of May 2015. I'teman Financing is a new product that is compatible with the provisions of Islamic Sharia and acts as a substitute for overdraft accounts. This product entitles the customers to cover operating expenses or financial overheads. Corporate institutions can apply for the credit line and can benefit from the availability of liquidity to do cash withdrawals, Telex Transfers and Demand Drafts, in addition to other financial transactions. The new banking product is Sharia'a compliant and targets corporate entities both inside the Kingdom of Bahrain and abroad in order to facilitate their flow of liquid funds.