IslamicFinance.de

Oil palm plantation firm Golden Agri-Resources has issued its first sukuk in Malaysia worth RM1.5 billion (S$600 million). The sukuk will expire in five-year's time - in November 2017. The funds gained through the sukuk are planned to be used for the general corporate purposes of the company and are expected to strengthen its financial flexibility for growth. The issuance of the Islamic bond is a part of a RM5 billion programme.

Syed Alwi bin Mohamed Sultan, the Kuala Lumpur-based head of Islamic banking for Asia Pacific at BNP Paribas Malaysia Bhd., talked about the trends in Islamic finance at the World Islamic Banking Conference in Singapore.
He noted that there is more diversification of the investor base. Potential issuance this year are from countries like South Africa, Kenya, and Senegal.

It seems that the Singaporean government is considering an endowment fund to promote Islamic education in the south-eastern Asian country.
The three-million-dollar fund will be developed by the Islamic Religious Council of Singapore (MUIS). It will be applied to promote Islamic education in the south-eastern Asian country.
MUIS manages and expands 200 waqfs properties in Singapore, with a total asset value of S$250 million. These properties, held in trust, hand over an annual rental income of millions of dollars, makes Singapore the region's most advanced country in the development of waqfs.

Singapore’s path to Shari’ah compliant home financing is being chocked by bureaucracy. The Islamic Globe recently noted on the absence of Islamic home financing products despite the Monetary Authority of Singapore having legislated for a range of Shari’ah compliant Islamic banking structures.
Furthermore, The Islamic Globe has learnt from a well-placed source that Maybank Islamic in Singapore has for the past two years been in discussion with local government agencies to pave the way for Shari’ah compliant home financing.
However, the source added that the greatest hurdle lies with the Central Provident Fund, which offers three elements of financial security – retirement, home ownership and healthcare.

MAYBANK Investment Bank Bhd (Maybank IB) wants to use the acquisition of Singapore’s banking franchise, Kim Eng Holdings, as a springboard to become a regional financial powerhouse.
The company now has operations in Malaysia, Singapore, Hong Kong, Thailand, Indonesia, Philippines, India, Vietnam, Saudi Arabia as well as in London and New York.
Maybank IB is focusing at this moment on establishing and expanding its line of business – investment banking and advisory, retail equities, institutional equities, derivatives and asset management – in its home markets, which are Malaysia, Singapore, Thailand and Indonesia.

Singaporean Muslims don't have the possibility to apply for Shari’ah compliant home financing in Singapore despite the Shari’ah structures being in place. The Monetary Authority of Singapore has established a range of Shari’ah-compliant Islamic banking contracts including Ijarah wa Iqtina and Diminishing Musharakah.
The Islamic Globe contacted a number of local and international Islamic finance institutions who admitted to a comprehensive lack of products suitable for the man on the street.
Local reports imply that the majority of Maybank Islamic’s customers in Singapore are non-Muslim.

Abu Dhabi Islamic Bank (ADIB) will hold investor meetings for a potential dollar-denominated Islamic bond, or Sukuk.
Meetings will begin in Kuala Lumpur on Nov. 17, and will cover Singapore and the United Arab Emirates (UAE), before ending in London on Nov. 21.

It seems that HSBC Amanah anticipates a pipeline of 30 new Islamic funds to raise its assets under management for serviced funds to $10 billion.
Germain Birgen, global head of securities services, stated that the bank currently services 90 Islamic funds worth roughly $5 billion in assets. He added that 30 new funds are forseen to be launched within the next 12 to 18 months.
He underlined the fact that there is also an increasing trend in the industry for Islamic fund managers in traditional Muslim markets to start international domiciled funds in Singapore and Luxembourg, to take advantage of better financial regulations and draw more conventional investors.

Standard & Poor's Ratings Services stated that Asia's solid economic growth and surging population will urge for significant developments and upgrades of its infrastructure.
It appears that Asian economies need US$8 trillion over the next decade to fully address the region's basic infrastructure needs, including developments in areas such as water, transportation, and energy.

Moody's Investors Service discovered various characteristics found in strategies adopted by Islamic banks which improve their financial strength ratings in a new report. This strategies contain: franchise value, risk positioning and financial fundamentals.
Christine Kuo, a Moody's viche president/senior analyst and author of the report, states that despite the fact that Islamic banks in different countries operate under different environments, are at different stages of development and therefore require different strategies, they still have some common strategy characteristics.

The Singapore Exchange (SGX) has initiated a guide on sustainability reporting to cater to increasing demand for greater transparency. The guide underlines the principles of sustainability reporting for the listed companies.
It seems that of the 800 companies listed in Singapore, it is estimated that around 20 do sustainability reporting.

After a landmark sharia REIT and local currency sukuk from Malaysia's Khazanah Nasional stirred the city-state's interest in wholesale Islamic banking, more Singapore companies are willing to raise Islamic financing.
Companies are looking for sukuk and Islamic private equity deals as an avenue to reach a broader class of investors, including those who can only put their money in assets that comply with religious principles. OCBC Al-Amin's chief executive, Syed Abdull Aziz Syed Kechik, added that these include Middle Eastern investors and government funds that invest according to Islamic tenets, such as Malaysia's Pilgrims Fund.

The ASEAN Equity fund will target medium- to long-term capital growth by investing in a portfolio of equities in the ASEAN markets with specific focus on the markets of Indonesia, Malaysia, Singapore, Philippines and Thailand.
The fund has an offer period to June 26, 2011.

Lim Hng Kiang, the Deputy Chairman of the Monetary Authority of Singapore (MAS), and Minister for Trade and Industry, said that Singapore’s Ministry of Finance will issue new income tax regulations for Islamic finance.
He underlined the fact that there was a need to ensure that the legal and regulatory regimes remain robust in ensuring the soundness of Islamic markets and institutions, and yet conducive for Islamic finance to grow at a sustainable rate.

Lim Hng Kiang, Minister for Trade and Industry, who is also the Deputy Chairman, Monetary Authority of Singapore (MAS) (the financial regulator), announced at a conference in the island state that Singapore will in due course issue new income tax regulations for Islamic finance to provide greater tax clarity and certainty to the industry.
It is no secret that Singapore is reaching to be a global hub for Islamic wholesale banking services, asset management and capital markets.

Aspiring Islamic finance centres like Singapore and Malaysia may see an inflow of funds in search of Islamic banking alternatives.
Analysts said the recent turmoil in the Middle East has made some syariah-compliant investors to pull their money out of that region. They also think that Islamic finance has huge potential to appeal to non-Muslim investors as well. They believe that Islamic finance can be demystified and better understood with more investor education.

Mr Lim Hng Kiang, deputy chairman of the Monetary Authority of Singapore, announced that new income tax rules for Islamic finance products will be launched.
The new regulations will include financing agreements based on financing through partnership agreement, project financing and the interbank placement of funds.

It appears that top shareholders of Indonesia's PT Bank Muamalat is trying to sell at least a 51 percent stake in the unlisted Islamic lender, in a deal that may be valued at about $300 million. Bank Muamalat confirmed the sale process. Bloomberg states that the deal may value the bank at $600 million.
Although Chinese Banking Corp had also looked at the bank in the first round, it seems that they are no longer interested.

Barwa Bank and National Petroleum Services Group (NPS) made an agreement to refinance an existing syndication and support its expansion and working capital. All this will be worth QR529m.
NPS group provides drilling and well services to customers in the oil, gas and petrochemical industries in the Middle East, North Africa, Far East, and Europe.
Its state-of-the-art equipment and sectorial services are embracing Qatar, Saudi Arabia, United Arab Emirates, Bahrain, Syria, Brunei, Malaysia, Singapore, Libya, and Iraq.

It seems that HSBC Middle East is going to meet investors in Asia and Europe for a potential sukuk issue. The meetings will take place in Singapore, Kuala Lumpur, Hong Kong and London.