Malaysia

ALI eyes Islamic bond sale to fund venture in Malaysia

Property giant Ayala Land Inc. is looking at debuting at the Islamic financing market by issuing sukuk securities, to boost its fledgling venture into Malaysia’s property industry. ALI in April acquired 9.16 percent of Malaysian company GW Plastics Holdings Bhd. through a private placement amounting to $43 million or P1.9 billion. The Malaysian firm was later renamed MCT Bhd. ALI subsequently entered into a call option agreement with the two founders of the Malaysian firm, allowing it to increase its shares in MCT up to a maximum of 32.95 percent. To fund the entire investment, which needs to be accomplished in a month’s time, Ysmael said ALI is looking at the cheapest options available.

China’s realty player Country Garden plans $340m sukuk bond issue in Malaysia

Chinese property developer Country Garden Holdings Company Ltd plans to issue up to MYR1.5 billion ($340 million) of medium-term sukuk, through its Malaysian subsidiary, to finance the latter’s present and future investments. The issuer, Country Garden Real Estate Sdn Bhd, plans to commence marketing of the first tranche of medium term notes (MTN) to qualified investors. The MTN will not be offered to the general public and will not be listed on any securities exchange, Country Garden said. The mode of issuance, size and coupon rate of the proposed issue will be determined prior to distribution, and is subject to market conditions and investors’ interest. CIMB Investment Bank Berhad was appointed as the lead arranger and lead manager.

Khazanah's MD says 'not in a rush' to sell Bank Muamalat stake

Khazanah Nasional Bhd is "not in a rush" to sell its 30% stake in Bank Muamalat Malaysia Bhd, under the proposed merger with Malaysia Building Society Bhd (MBSB). Khazanah's managing director Tan Sri Azman Mokhtar said the Malaysian state-owned investment arm's decision was incumbent upon the negotiated value for its Bank Muamalat stake. He cited the right price and the right configuration as requirements for a sale. DRB-Hicom Bhd holds the balance 70% stake in Bank Muamalat. According to Azman, as Khazanah is only a 30% shareholder in Bank Muamalat, Khazanah is not taking the lead in the merger talks. Khazanah will make a decision based on whatever they decide, he added.

MBSB-Bank Muamalat merger raises ‘asset quality’ concerns - Affin Hwang

Malaysia Building Society's (MBSB) planned merger with Bank Muamalat Malaysia is expected to create a financial services entity with a collective asset size of some RM60 billion. Affin Hwang Investment Bankwrote in a note today that MBSB and Bank Muamalat's assets were valued at RM41 billion and RM22 billion respectively. Nevertheless, there could be potential write-offs of the loan book subsequent to due diligence exercises, which is likely to follow suit. However, Affin Hwang also said they were not too optimistic about the merger, as previously there have been other merger discussions between Bank Muamalat and other parties that were unsuccessful.

Railways, power plants set to revive sukuk sales

Malaysian companies building railways and power plants under Prime Minister Datuk Seri Najib Razak’s US$444 billion (RM2 trillion) development programme will help revive sukuk sales from the slowest quarter since 2010. Corporate issuance could rise to as much as RM60 billion for the full year, said Mohd Effendi Abdullah, head of Islamic markets at Kuala Lumpur-based AmInvestment Bank. More Shariah-compliant bond sales are likely to be announced once the United States goes ahead with an expected interest-rate increase, removing an uncertainty that’s stifled issuance, said Effendi.

Worst Malaysia sukuk drought since 2010 seen easing this quarter

Malaysian companies building railways and power plants under Prime Minister Najib Razak’s $444 billion development program will help revive sukuk sales from the slowest quarter since 2010. Corporate issuance could rise to as much as 60 billion ringgit ($13.5 billion) for the full year, said Mohd. Effendi Abdullah, head of Islamic markets at Kuala Lumpur-based AmInvestment Bank. While the forecast would mark a pickup from the 31.5 billion ringgit sold so far this year, offerings would still remain below levels for the past three. Effendi said sukuk issuers that need the funds will still go ahead with sales even if market conditions are tough because they can structure longer-maturity debt to appeal to pension funds and insurers.

Zero fees for instant inter-bank transfers from tomorrow

Malaysian Electronic Payment System Sdn Bhd (MEPS) and its member banks will waive the fee for its real-time Instant Transfer, previously known as Inter-bank Funds Transfer (IBFT) service, from tomorrow – Oct 1 – to Dec 31. In a statement yesterday, MEPS said the zero fee was applicable for transactions on the Internet and mobile banking channels of the participating banks. However, the instant transfer fee at automated teller machines (ATMs) remained at 50 sen, it said. The initiative shows the banks’ and MEPS’ support for Bank Negara Malaysia’s (BNM) e-Payment adoption. By 2020, BNM is targeting to increase the number of e-payment transactions per capita from 72 to 200.

Allianz Life still keen on takaful business

Allianz Life Insurance Malaysia Bhd, which is aiming to have 10,000 agents by year-end from 8,300 now - remains interested in the takaful business although it is not in talks with any potential acquisition target now. Allianz Life CEO Rangam Bir said it sees that a large part of the market has the need for takaful solutions. Allianz Life is a subsidiary of Allianz Malaysia Bhd, which in turn is Allianz SE’s subsidiary. Allianz SE had failed in an attempt to buy a local takaful operator in 2011. Last year, a member of the board at Allianz SE said that it is not economically viable to enter into the domestic takaful market just yet.

Qatari bank QNB confirms talks end with Kuwait Finance House over Malaysian unit

Qatar National Bank (QNB) has halted preliminary talks with Kuwait Finance House (KFH) to buy its Malaysian unit, the Gulf Arab region's largest bank said. An agreement has not been reached. Earlier, KFH's chief executive Mazin al-Nahedh had said the bank had ruled out a sale or merger for its Malaysian unit, adding the largest Islamic bank in the Gulf Arab state will begin restructuring the unit with immediate effect. The disclosure from KFH comes after a source familiar with the matter said last week that QNB had bid to buy the unit, with the Qatari lender later acknowledging it was in early talks about an acquisition.

HSBC’s Rafe expected to helm CIMB Islamic

CIMB Group Holdings Bhd is expected to appoint Rafe Haneef, who currently heads HSBC Amanah Malaysia Bhd, as the new chief executive officer of its Islamic banking arm CIMB Islamic Bank Bhd. It is understood that Rafe has tendered his resignation, after almost five years of helming the foreign Islamic lender. The appointment is still in the process of getting Bank Negara Malaysia’s approval. CIMB Islamic Bank has been without a captain ever since Badlisyah Abdul Ghani resigned as its CEO and board member in July. CIMB Islamic Bank then appointed Mohd Shafri Shahul Hamid as the person in charge of the bank while it looked for a new CEO.

Kuwait Finance House CEO rules out sale or merger of Malaysian unit

Kuwait Finance House (KFH) has ruled out a sale or merger for its Malaysian unit, its chief executive said on Tuesday. Mazin al-Nahedh added the lender, the largest Islamic bank in the Gulf Arab state, will begin restructuring the unit with immediate effect. The disclosure from KFH comes after a source familiar with the matter said last week that Qatar National Bank had bid to buy the unit, with the Qatari lender later acknowledging it was in early talks about an acquisition.

Islamic Finance: Efforts to boost Islamic banking sector paying off (Part 1)

The enforcement of the Islamic Financial Services Act by Bank Negara Malaysia in June to distinguish between deposit and investment accounts offered by Islamic banks will pave the way for the introduction of new retail products. The development of the Islamic finance sector in Malaysia has enjoyed the support of the government, which has announced the RM150 million Investment Account Platform under Budget 2015. The platform, which is slated to start on Sept 1, is a shariah-compliant investment product designed to attract institutions and individuals to invest in the country's Islamic financial markets.

QNB Said to Bid for Kuwait Finance House's Malaysian Operations

Qatar National Bank is among suitors that submitted final bids for Kuwait Finance House KSC’s Malaysian operations, people with knowledge of the matter said. Kuwait Finance House is evaluating offers from Qatar National Bank and at least one other party, according to the people. It may not proceed with the sale unless it can agree on a high enough price, one of the people said. Kuwait Finance House’s Malaysian unit had a book value of 1.7 billion ringgit ($395 million) and total assets of 10.5 billion ringgit at the end of December, according to its 2014 annual report. Offers for the business were affected by the difficult economic environment in the country, one of the people said.

Kuwait Finance House set to decide Malaysia unit fate -spokesman

Kuwait Finance House will decide the fate of its Malaysian business by the end of this month, a spokesman said on Tuesday, after it had been reported that Qatar National Bank had bid to buy the unit. The sale ist part of of a broader restructuring of its operations. A spokesman for KFH said it was looking at several options whether to restructure, sell or merge its Malaysian business and that the decision will be concluded by the end of this month. A source familiar with the matter had said earlier that QNB had submitted a bid to purchase the Malaysian unit. The source declined to provide further details, and whether there were other bidders involved.

QNB said to bid for Kuwait Finance House’s Malaysia business

Qatar National Bank is among suitors that submitted final bids for Kuwait Finance House’s Malaysian operations. KFH is evaluating offers from Qatar National Bank and at least one other party. It may not proceed with the sale unless it can agree on a high enough price. State-controlled Qatar National Bank has been expanding overseas to reduce its reliance on its home market. It has spent US$3 billion on acquisitions since 2012. Kuwait Finance House’s Malaysian unit had a book value of 1.7 billion ringgit (US$395 million) and total assets of 10.5 billion ringgit at the end of December. Offers for the business were affected by the difficult economic environment in the country.

SapuraKencana makes first sukuk issuance of US$200m

Oil and gas player SapuraKencana Petroleum Bhd has made its first issuance of US$200mil (RM845.8mil) sukuk under the multi-currency sukuk programme. The company said in a filing with Bursa Malaysia that its unit SapuraKencana TMC Sdn Bhd (SKTMC) will use the proceeds to refinance some existing debt. The sukuk offering is the first to be launched under the new Securities Commission Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework effective June 15, 2015. The company announced last week that SKTMC had signed the transaction documents for the inaugural multi-currency Islamic medium-term note.

Source: 

http://www.thestar.com.my/Business/Business-News/2015/09/08/SapuraKencana-Petroleum-makes-first-sukuk-issuance-of-US$200mil/?style=biz

Sukuk offering boosts SapuraKencana’s share price

SapuraKencana Petroleum Bhd's share price rose this morning following its plan to launch a US$200 million (RM848.18 million) sukuk next week. The company's share gained two sen to RM1.79, as at 10.27 am, with 3.27 million shares changing hands. The first tranche of the sukuk, structured based on the Shariah principle of Commodity Murabahah, is scheduled to be launched on September 8, 2015. This is the first sukuk under the new Securities Commission's guidelines on Unlisted Capital Market Products under the lodge and launch framework effective from June 15, 2015.

Financial sector will hold strong: Maybank Islamic

Maybank Islamic Bhd is optimistic that Malaysia's financial sector will hold strong in the current turmoil and weather through the storm. Its chief executive officer Datuk Muzaffar Hisham is also confident that foreign investors will continue to invest in Malaysia's financial sector for the long run. Muzaffar was speaking to reporters after the signing ceremony between Maybank Islamic and the Selangor State Government for a new home financing package. On Thursday, Maybank Islamic recorded a revenue of RM1.9 billion for the first half ended June 30, 2015. Muzaffar said the group is expecting a lower loan growth for the second half of this year and will continue to monitor closely to maintain sustainability for the next few quarters.

Asia Islamic bonds turn to losses as the confidence in leaders ebbs

Dollar sukuk returns are turning into losses in Asia’s biggest Islamic finance markets as confidence in government leaders sours amid a regional sell off. Indonesia’s Shariah-compliant sovereign bonds due in 2024 have dropped 3.8% since April and the 2025 Malaysian debt lost 2.6%, compared with a 2.4% decline in a Bloomberg index of emerging-market conventional government notes. In that period, the rupiah plunged 6.4%, and the ringgit 13%. Both countries are grappling with an economic slowdown, falling commodity-export prices and capital outflows as the US prepares to raise interest rates. The reality is, investors have had to resign themselves to stagnant growth, so they were let down after buying into the story.

Time dotCom to raise RM1b Sukuk to expand fibre footprint

Time dotCom Bhd plans to raise RM1bil under its proposed Sukuk programme 2015-2035. RAM Ratings said on Tuesday it had assigned a preliminary rating of AA3/Stable to the Islamic medium-term notes (MTN) programme. The rating reflects Time dotCom’s sound business position in the fixed-line space and the earnings diversity from its international bandwidth business as well as data centre. Nonetheless, the rating is constrained by Time dotCom’s small market share compared to its larger rival’s. RAM Ratings said the proceeds would be used to expand its fibre footprint, further develop its data operations, refinancing of credit facilities and working capital requirements.

Syndicate content