IslamicFinance.de

Celcom Axiata Bhd has reached a price of RM5bil in nominal value for its sukuk issuance. Via bookbuilding process, RM3bil of it received a final book of RM10bil. There is a strong demand for the RM3bil sukuk from asset management companies, financial institutions, insurance companies and corporate organisations. The remaining sum of RM2bil is privately allocated. According to Celcom, the RM5bil sukuk was the largest rated sukuk murabahah issuance based on a tawarruq arrangement in the Malaysian debt capital market to date.

The common belief goes that Islamic finance or banking is for Muslims only. However, this is not true. Islamic finance and banking attempts to build a financial system based on ethics and fairness, havin thus an effect on the socio-economic conditions of the market it is implemented in. Therefore, people of any belief can make use of it. The problem is the lacking awareness about Islamic finance in Pakistan as well as worldwide. Optimized solutions for proper display of Islamic products and for bridging the communication gap between the Shariah councils issuing the fatwas pursuant to Islamic Finance, and the managers drafting the advertisements are sought.

According to Bank Negara Malaysia’s Shariah Advisory Council, there is a skill shortage in the Islamic finance Industry. In order to prevent it from hindering the growth of the Islamic Finance, Southeast Asian universities are adding Islamic finance courses. The new programmes will start at universitas Muhammadiyah in Malang, Indonesia and Kuala Lumpur-based International Centre for Education in Islamic Finance (INCEIF). The new courses shall bridge the gap between what was formerly taught and what is requred by employers.

Saudi Arabia has recently introduced several reforms which shall lead to greater certainty and predictability on the market. Due to them, several new committees shall be created with aim to restructure the Saudi Arabian judiciary system and make the decision-making system more clear. The duration of banking disputes has been limited to five years after the date of knowing the incident that gave rise to the dispute.

Emirates Money intends to launch Banca Takaful in conjunction with Dubai Islamic Insurance and Reinsurance Company and Global Takaful Solutions (FWU). A key feature of the new Shari'ah-compliant financial plan is to protect invested capital in a bear market situation that we are experiencing nowadays. Banca Takaful shall offer two different investment strategies - equity and cash - allowing customers to choose their investment strategy.

Microtakaful shall help people at the base of the economic pyramid to find a way out of poverty and gives them a real hope of being financially independent. It is known that of the 41 lowest human development countries, 20 have a majority Muslim population. In other words, 54 % of the one billion people living in the low depending countries are Muslims. There are actually just a few takaful operators that have entered into the low-income microtakaful market, especially in the countries where almost all population is Muslim, poverty is extended and the takaful sector is already established.

Al Baraka shall provide Shari'ah-compliant finance to small projects in Egypt with cooperation with World Bank through the Social Fund and its subsidiary in Egypt. Bank authorities claimed in their statement that small projects hast become the highest priority for countries and international financial instututions due to high unemployment rates.

Islam gives lessons about business and shows up many ways to be succesfull. The concept of 'Tawhid' considers individuals as a part of society and combines morality in social context, where each individual has two types of responsibilieties: first, the individual obligations to perform religious duties and second, the obligation to serve the community. According to that, each individual has obligation not only to seek for individual success, but also to serve and benefit the community.

Capital Intelligence has reaffirmed the rating of NIG Mudaraba Sukuk at 'BBB-', even though the company's performance in past two years continues to be weak. The company is struggling due to pressure by high financing costs of its large debt and a persistently weak stock market.

The court in Sindh provice registered a petition of five Pakistan's takaful operators as a sign of protest againts the new rules for insurance sector that was launced last month. Accordint to them, conventional insurance firms would become right to offer takaful services. It would make Pakistan the second Islamic country after Indonesia where takaful windows are officially allowed. The court has been adjourned to an unknown date.

The UAE central bank wants lenders to extend maturities on certain personal loans held by UAE citizens by more than five years. In the latest circular sent to banks, the regulator wishes to reschedule citizen's loans by more than 48 months if the repayment exceeds 50% of gross salary and other income. This is to help UAE's citizens to carry high debt burden, since they took out massive personal loans during the boom years between 2003 to 2008 but found themselves unable to pay them back as the cause of global financial crisis.

Development Bank of Kazakhstan has lately decided to swap their 240 million-ringgit sukuk (five-year murabaha Islamic note) to U.S. dollars. The Astana-based bank already sold debt denominated in the Malaysian currency in July of this year, in order to prepare the dollar swap that comes due in August 2017.

Celcom has successful floated its sukuk issuance of RM5bil in nominal value, of which RM3bil received a final book. Celekom's officials also confirmed yesterday that their RM3bil sukuk has met with strong demand from asset management companies, financial institutions, insurance companies and corporate organisations.

Islamic financial body ASAS intends to globally launch a new scholar programme with aim to improve the financial literacy of scholars and this way to prevent the slowing of the industrial growth. In addition, it should be developed a global code of etics, in order to improve standards in the industry.

Al Izz Islamic Bank has announced the lunch of its IPO by next month. The bank has already received approval from the regulatory authority. According to bank officials, the shares should probalbly be listed on the stock market as soon as in September.

Malaysia's CIMB Islamic Bank defended its AA+/Stable rating on MYR 2 billion Tier-2 Junior Sukuk programme, issued by rating agency MARC . The programme rating is one grade lower than bank's financial institution rating of AAA. However, MARC confirmed the stable outlook for the rating of the programme, as CIMB Bank meets their expectations for the rating category.

Saudi Binladin issued a SAR 1 billion Islamic bond, as a part of its expansion strategy. During the first 6 months of the year, total amount of issued sukuk bonds reached 13% of global Islamic bonds, due to continuous expansion of Saudi Arabian companies into funds market.

Abu Dhabi Islamic Bank said it will start to provide a new business line focused on UAE community that is in accordance with banking requirements for non-profit organizations. A new service, called ADIB Community Banking, shall provide help to Charities, Philanthropy Associations, Special Needs Foundations and Islamic affairs authorities in order to fulfill their special needs.

UK Muslims will get access to financial products that are in line with Islamic Shari'ah rules, as day want to know what drives the returns they are receiving. A new service, called Ummah Financial Planning, has been recently launched by Garbutt & Elliott and should help around two to three million Muslims in the UK to manage their finances.

Emirates Islamic Bank said it will sponsor the sixth Takatof Ramadan Project that was recently set up by the Emirates Foundation for Youth Development. The scope of the project is to create an interactive social network among all community and to help disadvantaged families.