IslamicFinance.de

Ghana and the Islamic Development Bank (IDB) have joined the African Legal Support Facility (ALSF). Ghana is now the 48th country to join the facility and the IDB the sixth international organization to become a member. The membership of the IDB shall be followed by the approval of an IDB financial contribution to the Facility of up to US$ 1 million, according to ALSF Director Stephen Karangizi. An independent body hosted by the African Development Bank (AfDB), the ALSF supports the AfDB's Regional Member Countries in the negotiation of complex commercial transactions and litigation brought against them by vulture funds. It also provides capacity building. The ALSF's goal is to ensure fair and balanced negotiations.

Most of the conventional banks in Bangladesh are increasingly becoming interested in starting Islamic banking to get more deposits. Bangladesh Bank (BB) is not, however, allowing banks to convert into Islamic banking or even open such branches because of not having a central sharia council to regulate this particular brand of banking. NCC Bank and Southeast Bank have applied to the central bank for permission to convert into full-fledged Islamic banking. Several other banks have sought permission to open Islamic banking branches. The central bank decided not to allow it until formation of a central sharia council. The norms of the Islamic banks in Bangladesh vary as each bank is following sharia rules according to their choice since sharia laws vary from country to country.

Thanin Angsuwarangsi has tendered his resignation as the president of Islamic Bank of Thailand, only after six months in office. The bank’s board of directors announced that his resignation has been approved. Thanin’s decision followed employees’ pressure. Over 1,400 employees signed the petition to the board, saying that a number of the president’s decisions caused damage to the bank. Among the allegations, Thanin was alleged of ordering bank executives to cancel a lending and loan disbursement procedure, which affected borrowers financially and resulted in higher non-performing loans. The employees pointed out that the bank’s NPLs rose from Bt24 billion in November 2012 to over Bt38 billion in April 2013.

The Seminar on Strategies for the Development of Islamic Capital Markets was held on June 27 in Hong Kong to promote discussions, understanding and experience-sharing in the area of Islamic capital markets. The event was organised by the Islamic Financial Services Board (IFSB) and hosted by the Hong Kong Monetary Authority (HKMA). In the one-day seminar, speakers with experience and expertise in the Islamic finance field discussed the latest developments of the global Islamic capital markets and examined the prospects and opportunities, with particular focus on Sukuk and Islamic collective investment schemes. The seminar was attended by more than 80 delegates including representatives from regulatory authorities, policy-makers, financial institutions, market professionals and legal practitioners from Hong Kong and different parts of the world including the Middle East, Asia, Africa and Europe.

Bank Negara Malaysia (BNM) has extended the deadline for the negotiations among BIMB Holdings Bhd, Dubai Financial Group LLC and Lembaga Tabung Haji (LTH) over the Bank Islam Malaysia Bhd stake to July 31. Following the extensión of the deadline, a formal approval shall be sought for the proposed acquisition as mutually agreed among the parties. BIMB already owns 51% in Bank Islam. A 30.5% stake is with the Dubai Financial Group (DFG) while 18.5% is held by Lembaga Tabung Haji (LTH). BIMB is seeking to purchase LTH's stake in Bank Islam. LTH also owns a 51.5% stake in BIMB. BIMB may have to fork out RM2.7bil to own 100% of its unlisted banking unit Bank Islam.

LGT Venture Philanthropy is proud to launch its second call for applications for the Smiling World Accelerator Program(SWAP) 2013 in Indonesia.

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LGT Venture Philanthropy, dengan dukungan GEPI mengumumkan pembukaan pendaftaran kedua untuk Smiling World Accelerator Program (SWAP) 2013.

SWAP merupakan program khusus selama 9-24 bulan bagi para pengusaha di bidang kesehatan, pendidikan, energi yang berkelanjutan dan diperbaharui, pertanian, serta Teknologi Informasi dan Komunikasi, yang melayani atau bermanfaat bagi orang yang kurang mampu dan yang sedang berjuang kearah level pertumbuhan dan dampak positif yang lebih tinggi.

SWAP menyediakan bantuan dana sesuai kebutuhan (sampai dengan USD 50,000 per organisasi), mentor bisnis di lapangan dan juga akses ke berbagai jaringan internasional.

LGT Venture Philanthropy telah memilih dan membantu 6 organisasi yang masih dalam tahap permulaan dengan rata-rata investasi masing-masing sebesar USD 35’000, dan memberikan dukungan berupa bimbingan teknis melalui satu konsultan bisnis tetapnya di lapangan.

Islamic banking experts have called on the Central Bank of Egypt to tailor its policies regarding Islamic banking services to be more in line with those of Islamic banks themselves. The call came during the fourth annual conference of the Egyptian Islamic Finance Association, during which the association launched its index of shares compatible with Islamic law, measuring the performance of those shares traded on Egypt’s stock exchange by their compatibility with Sharia standards.Mustafa Ibrahim, forensic audit manager for the National Bank for Investment, said the index was unique in that it was founded upon Sharia standard number 21, released by the Accounting and Auditing Organisation for Islamic Financial Institutions.

Nakheel's sukuk yields spiked yesterday, as the developer discusses its options on how to refinance its upcoming debt repayments. Yields for the developer on its Islamic bonds maturing in 2016 hit their highest level since November last year. Analysts said investors were responding to a lack of information over progress with the company's refinancing discussions with lenders. The recent sell-off may have hurt bond investors, but borrowing costs have returned to about the same levels as recently as nine months ago, meaning most issuers would have few difficulties selling new debt if they needed. Funds tracking the HSBC/Nasdaq Dubai UAE US dollar sukuk index have lost money this year, with total returns down 2.7 per cent year to date.

Investors in Islamic bonds are losing money for the first time in more than three years in the second quarter as concern that the US Federal Reserve will withdraw monetary stimulus upended a rally that returned 33 per cent. Redemptions from emerging-market bond funds hit a 90-week high in the week ending June 19. Sukuk had benefited from a boom in Islamic finance, with Ernst & Young forecasting a surge in the industry's assets to US$1.8 trillion this year from US$1.3 billion in 2011. In January, syariah- compliant yields fell to a record low before a 57 per cent jump to date, linked largely to speculation that the Fed will scale back its bond buying as the US economy improves.

Oman’s first corporate sukuk has received regulatory approval and the five-year, RO50m ($130m) private placement aims to close next month. It will be issued by Tilal Development Co and the proceeds will be used to repay existing debt and expand the Muscat Grand Mall. The sukuk, rated BBB+ by Capital Intelligence, will pay a five percent profit rate and use an ijara structure, a common Shariah-compliant leasing arrangement. Omani domestic investors such as pension funds and insurance firms have expressed interest in the sukuk and it could have a broader regional appeal, in particular from Qatar. A corporate sukuk could also be welcomed by local Islamic banks, which are eager for access to more sharia-compliant investment products while Oman’s Islamic money markets are underdeveloped.

The sixth China Hui Merchants Fair will be held in September as part of the China-Arab States Expo in Wuzhong, Ningxia Hui Autonomous Region. The Hui people are a predominant Muslim ethnic group in China, who usually speak Chinese and prefer traditional Islamic dress. During the fair, many activities will be held including the annual meeting of Hui merchants, a Halal Industry development forum, a contest between Halal food suppliers and an international Muslim food culture week. The Hui Merchants Fair aims to promote economic and cultural cooperation and exchange between China and Arab States. Ultimately, Wuzhong hopes to be the production base for Halal food in China.

Barring any unforeseen circumstance, Osun State will issue Nigeria's first Sukuk bond of N10 billion before the end of July. The planned 7-year paper would be part of a N60 billion debt raising programme of the state which started last year. The Osun bond will be issued through a book-building process which will earn a return for sukuk holders via a semi-annually paid rent structure called the Ijara. The government is targeting local pension funds and international investors on the bond. Local credit rating agency Agusto & Co has assigned an A rating to the note, which will be listed on the Nigerian Stock Exchange. Osun is waiting for the Securities and Exchange Commission’s (SEC’s) approval to start marketing the bond. The funds will be used to finance the construction of education projects.

The latest World Bank review of policies and institutions in Sub-Saharan Africa shows an overall stable environment for growth and poverty reduction despite divergence across countries. The review is part of the annual World Bank Country Policy and Institutional Assessment (CPIA) that rates the performance of poor countries. The scores of 11 countries rose by 0.1 points or more, reflecting a strengthened policy agenda, and the indexes of another 12 countries declined by at least 0.1 points. Cape Verde and Kenya had the highest scores. The upward trend of scores assessing social reforms shows that they are taking hold in Sub-Saharan Africa. Governance scores continue to lag all other areas assessed by the CPIA, reflecting the deep-rooted challenges facing African countries in this important area.

Emirates Islamic Bank contributed AED 7 million to Dubai Healthcare Authority to support Rashid Hospital in purchasing computed tomography (CT scan) machines, which will be used for medical imaging procedures at the government healthcare institution. The donation reflects Emirates Islamic Bank’s commitment towards the development of the UAE healthcare industry by working alongside government hospitals. The financial aid to Rashid Hospital follows similar initiatives by Emirates Islamic Bank to healthcare institutions in the UAE in recent years. Emirates Islamic Bank’s recent contribution to Rashid Hospital is also in keeping with its objective to support charitable causes via a dedicated Zakat Fund at the bank. In 2012 alone, the bank’s Zakat Fund contributed over AED10 million to various charitable causes.

Mr. Yousef Al Mahmeed, Chairman of Hamad Town Charity Fund thanked Khaleeji Commercial Bank and its chairman Dr. Fuad Al Omar for its contribution towards sponsoring a number of needy families in association with the Charity Fund. Khaleeji Commercial Bank has agreed to use part of its charity fund to support a number of families sponsored by Hamad Town Charity Fund to ensure the support goes directly to the needy families. Mr. Yousef thanked the Bank for its initiative and continuous support for programs organized by Hamad Town Charity Fund and other general initiatives taken for similar projects. The Charity Fund will facilitate the process of helping those selected families by providing the Bank with their names, details and identified needs.

The Islamic Development Bank is considering a recent request by Egypt for $10 billion in funding for infrastructure development projects, to be provided over the next five years. On Monday, Egypt received a $300 million loan from the IDB to the Egyptian General Petroleum Corporation. The loan is part of a total $1 billion loan agreement signed by Egypt with the IDB in July of last year aimed at funding food and energy imports. Ahmed Mohamed Ali, head of the Islamic Development Bank Group reiterated the bank’s commitment to helping Egypt surmount its formidable economic challenges, having already granted it $6 billion in funds. Ali pledged to send an IDB team to Cairo to begin discussions on the requested $10 billion loan in September.

Moody's Investors Service said it has placed four Bahraini banks - National Bank of Bahrain (NBB), BBK, BMI Bank and Bahrain Islamic Bank (BIsB) - on review for possible downgrade of its deposit, issuer and senior debt ratings. As part of the same rating action, Moody's has also placed on review for downgrade the standalone bank financial strength rating (BFSR) of BIsB. Moody's decision comes following the potential weakening in the sovereign's capacity to provide support to the banks, as signaled by the agency's decision to place the Baa1 Bahraini government bond rating on review for possible downgrade. The sovereign review was prompted by the fiscal implications of Bahrain's high and rising break-even oil price; the outlook for lower trend economic growth in the country over the medium term and the impact of a low-growth, high government expenditure and weaker oil price scenario on Bahrain's long-term debt sustainability.

The Al Baraka 34th Symposium on Islamic Economics is scheduled to be held in Jeddah on July 17 and 18. The symposium will discuss methods of calculating zakat of equity and debt financing. It will cover fiqh and Islamic doctrinal researches submitted by scholars specialised in Islamic banking and finance, who will discuss issues related to investment including sukuk and fiqh, debt and participation contract. A number of scholars and economists will comment on these researches in open sessions - which will be attended by about a 1,000 interested people from various Islamic countries.

Sukuk sales in 2013 will pick up speed to beat last year’s record because of the relative resilience of Islamic debt to surging global bond yields, said HSBC Holdings plc and Deutsche Bank AG, the top two underwriters. Issuance will reach US$55 billion to US$60 billion (RM191.88 billion), from US$46.5 billion in 2012. The prospect of the Federal Reserve tapering its monetary stimulus has pushed the average yield on global sukuk up 68 basis points this month to 4.06% on Monday. That compares to an 110 basis point increase to 6.17% for emerging-market debt. The Shariah market has many “buy-and-hold” investors, reducing price swings. The high borrowing costs in the conventional markets contributed heavily to the current growth of Shariah-compliant sales.

Aston Martin's indebted majority owner has won the backing of sufficient creditors to proceed with a fresh debt restructuring plan – using the British luxury carmaker as collateral – ahead of a planned seven-year asset disposal program. Investment Dar's proposed restructuring received the minimum required backing of at least 13 per cent of creditors, but did not exceed the 56 per cent maximum that the company would allow.