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CIMB Islamic Bank has committed RM1 million per year, renewable annually for up to 3 years for the conservation efforts of Setiu Wetlands, Terengganu. The three-year project with a total potential commitment of RM3 million, is in collaboration with World Wide Fund for Nature Malaysia (WWF-Malaysia). The project contributes towards safeguarding Setiu Wetlands’ healthy and functioning ecosystem by establishing a critical knowledge base to guide sustainable development. This is CIMB’s third collaboration with WWF-Malaysia on strategic conservation projects, subsequent to the project in Ulu Muda, Kedah, and in Ba’ Kelalan and Long Semadoh in Sarawak.

Takaful Ikhlas and CIMB Islamic Bank are targeting to achieve RM168 million in gross contribution from their newly forged strategic bancatakaful partnership. The two groups expect the partnership to grow by 11% every year for the next five years. The partnership is aimed at providing general takaful solutions to the bank’s customers across retail, small and medium enterprises, as well as commercial segments. CIMB Islamic will leverage on Takaful Ikhlas' offerings, which, in turn, will leverage on CIMB Islamic’s distribution channels comprising the bank’s 250 branches nationwide, online platforms and call centres. Takaful Ikhlas CEO Eddy Azly Abidin said the demand for takaful products was growing and both organisations should work closer together to capitalise on this market’s potential.

Malaysia will remain the market leader in global sukuk issuance despite recent delays and cancellations of mega projects. CIMB Islamic Bank CEO Rafe Haneef said the delays of some mega projects would have some impact sukuk deals, but it is still business as usual for Malaysia. Last year, Malaysia had issuances of over US$50 billion. According to Moody’s Investor Services, Malaysia continues to remain the world’s largest sukuk with an estimated 44% of total sovereign sukuk outstanding in 2017. Issuance grew 17% in 2017 to some US$100 billion. CIMB Investment Bank topped Bloomberg’s Underwriter League Table for ringgit bonds for 12 years running. Going forward, Rafe expects issuances will come from both the infrastructure and corporate space.

Malaysian Rating Corporation (MARC) has assigned a preliminary rating of AAA with a stable outlook to CIMB Islamic Bank's proposed RM10 billion senior Sukuk Wakalah Programme. MARC said the sukuk wakalah would provide an additional platform to raise liquidity for the bank should it need to strengthen its funding base. The rating agency added that the bank would be able to utilise its existing Basel III Tier-2 Junior Sukuk Programme to support its capital position when required. CIMB Islamic’s existing sukuk issuances, rated and affirmed by MARC with a stable outlook are as follows: an RM5 billion Tier 2 Junior Sukuk programme at AA+IS and its RM2 billion Tier 2 Junior Sukuk programme at AA+IS.

According to CIMB Islamic Bank CEO Rafe Haneef, Muslim countries and customers with such affinity should tap into the green sukuk market, given the estimated US$45 trillion demand for such assets. He added that green sukuk, was very much part and parcel of shariah compliance, which should be halal and sustainable. In the context of global sukuk, the total size per year is about US$45 billion to US$50 billion, so green bonds are already five times the size of sukuk. RAM Rating Services deputy CEO Promod Dass said there was US$3 trillion worth of green investment needs in Asean from 2015 to 2030. Maybank Group global banking head Datuk Muzaffar Hisham opined Malaysia was in the right direction of participating in the green sukuk sector. He added that appetite for green investment was growing, the only question remaining was how to accelerate it.

In this interview CIMB Islamic Bank CEO Mohamed Rafe Mohamed Haneef talks about the bank's achievements in Malaysia and its growth plans. The most significant segment for CIMB Islamic Bank is retail banking. When Haneef joined the bank, consumer banking’s contribution was between 40 and 45%, while at the end of June it was almost 60%. The bank came up with an embedded model which enables both CIMB Islamic and the conventional side from CIMB Group to tap the same talent. CIMB operates on two separate licences, but out of the same branches, as relationship managers offer both Islamic and conventional banking options. According to Haneef, the bank plans to focus on the Asean region first before eventually building inroads into the Middle East beyond 2018. CIMB Group’s Islamic Asset Management is in close contact with the Securities Commission (SC) and plans to contribute to the development of Sustainable and Responsible Investing (SRI).

According to Mohamed Rafe Mohamed Haneef, CEO of CIMB Islamic Bank, Dana Gas’s case will leave the global Islamic finance industry relatively unaffected. Dana Gas said it no longer considered its two securities due in October as compliant with Islamic principles under UAE law. Unlike Malaysia, most Arab countries have no centralised Shariah boards to approve deal structures. In Haneef's opinion, Dana Gas’s case will probably be dismissed, as the sukuk agreement is subject to laws in both the United Arab Emirates and the U.K. A U.K. court is due to issue a ruling on Dana Gas' attempt to extend an injunction preventing sukuk holders from taking action regarding the debt. The company has proposed restructuring the notes on terms that are less advantageous to investors and plans to explain the legal action on a conference call with investors on July 6.

Badlisyah Abdul Ghani, the former CEO of CIMB Islamic Bank, has been appointed deputy CEO of pilgrim fund Lembaga Tabung Haji. Badlisyah gained fame when he disputed the authenticity of banking documents released by The Wall Street Journal relating to 1Malaysia Development, which touched on US$700 million being transferred to Prime Minister Datuk Seri Najib Razak’s personal accounts. While an internal inquiry was ongoing at CIMB, Badlisyah resigned in mid-August last year. It is not clear how Badlisyah is already stated on the company website as deputy CEO, when no formal announcement has been made in this respect.

Maxis Broadband, a unit under telecommunications group Maxis, is planning a sukuk issuance to raise as much as MYR10 bn for acquisitions and capital expenditure. CIMB Investment Bank is the sole principal adviser and sole lead arranger for the programme, while CIMB Islamic Bank is the shariah adviser for the programme. The Islamic Development Bank (IDB) has issued a MYR350 mn ($86.6 mn) sukuk for project financing and other development activities. IDB president Ahmad Mohamed Ali said the successful issuance of sukuk in Malaysian Ringgit is a testimony to the increasing interest for sukuk.

The former chief executive officer at HSBC Amanah Malaysia Bhd, Mohamed Rafe Mohamed Haneef, will soon head CIMB Islamic Bank Bhd. In a statement today, CIMB Group Holdings Bhd said Rafe will assume his new post on Jan 4 next year as CEO and executive director of CIMB Islamic Bank and CEO of Group Islamic Banking Division. CIMB group CEO Tengku Datuk Seri Zafrul Aziz Tengku Abdul Aziz said that Rafe brings with him experience in business and functional positions in three global banks, an international asset management company and a legal firm. Rafe holds a bachelor’s degree in law from the International Islamic University Malaysia and a master’s degree in International Finance and Securities Law from the Harvard Law School.

The sustained effort to enhance the regulatory and legislative framework to support Islamic financial transactions will continue to place Malaysia as the biggest player in the global Islamic banking industry, says CIMB Islamic Bank Bhd. Chief Executive Officer Badlisyah Abdul Ghani said despite the growing competition from other markets, such as Indonesia and Saudi Arabia, Malaysia's better and firm framework would be a value added. Nevertheless, Badlisyah said due to the aggresive external environment, Malaysia should always come out with compelling, commercially driven products, to clearly distinguish itself from competitors. Badlisyah was a speaker at a panel discussion on "The Future of Islamic Banking: Where Do We Go From Here?"

Funding for infrastructure projects will be the driver for sukuk issuances this year, says CIMB Islamic Bank chief executive officer, Badlisyah Abdul Ghani. He said the sukuk issuance in 2015 could emulate the peak of 2012, if all planned infrastructure projects such as My Rapid Transit, the Pan-Borneo highway and Kuala Lumpur-Singapore high speed train venture come on stream. Badlisyah said for the market to be sustainable, more mid size offerings of between RM1 billion and RM2 billion are needed, as compared to a single mega size issuance of RM20 billion. Meanwhile, on CIMB Islamic,Badlisyah said the bank is currently working on a few sovereign deals which are expected to come on stream in the middle of this year.

CIMB Islamic Bank Bhd. plans to start offering microloans in Malaysia as it seeks new growth avenues after delaying plans to create a Shariah-compliant megabank. The Malaysian lender will offer a wide range of products including microsavings, microinsurance and advisory services. While acknowledging the risks, CIMB will put in place a framework to manage defaults. The lender’s microfinance business will develop in stages starting at the higher end. Keeping in mind that prospects for growth are good, the bank is looking to launch something subject to relevant approvals by this year.

The Islamic Research & Training Institute (IRTI) of the Islamic Development Bank (IDB) Group, and CIMB Islamic Bank Bhd of Malaysia signed a memorandum of understanding towards developing Islamic Finance Country Reports (IFCR) on Malaysia and Indonesia. The IFCR is expected to provide in-depth information, and independent due diligence to facilitate the growth and development of the Islamic finance industry in IDB Group member countries and encourage investment by enhancing transparency. Through this combined initiative, the two institutions aim to facilitate access to information that is currently not available to stakeholders.

CIMB Islamic Bank today signed a memorandum of understanding (MoU) with the Global University of Islamic Finance (INCEIF) to build a collaborative framework towards establishing a research centre for Islamic banking studies. CIMB Islamic Bank chief executive officer Badlisyah Abdul Ghani said the bank had allocated RM1.5 million as sponsorship over the three-year collaboration period. He said the MoU also aims to enhance and strengthen Malaysia's position as a globally recognised marketplace for Islamic banking and Islamic finance. INCEIF is the only institute in the world that focuses solely on Islamic finance education and research.

The proposed merger between CIMB Group Holdings Bhd, RHB Capital Bhd (RHBCap) and Malaysia Building Society Bhd (MBSB) would be credit negative for CIMB Islamic Bank Bhd, according to Moody’s Investors Service. Moody’s vice-president Eugene Tarzimanov noted that the merger would see CIMB Islamic Bank’s asset size triple as a result of acquiring RHB Bank’s and MBSB’s Islamic operations.

Sukuk sales by Malaysian lenders seeking to comply with Basel III rules are drawing strong demand, prompting arrangers to predict a rush of offers. CIMB Islamic Bank Bhd has reportedly submitted a proposal to the Securities Commission for a RM5 billion (S$1.9 billion) programme. Moreover, Public Islamic Bank Bhd received approval for a similar-sized programme, an April 23 stock exchange filing shows. AmIslamic Bank Bhd, Maybank Islamic Bank Bhd and RHB Islamic Bank Bhd have sold a combined RM2.2 billion of Basel III sukuk since late February.

The infrastructure projects to be launched in Asean and the Middle East and North Africa (Mena) regions will continue to put Malaysia as the champion in the sukuk market next year, according to CIMB Islamic Bank. Its Executive Director and Chief Executive Officer Badlisyah Abdul Ghani said the sukuk market will perform positively in 2014, with a projection of between US$42bil (US$1=RM3.25) and US$48bil of new issuances led by Malaysia and Saudi Arabia. CIMB Islamic has so far topped the lead manager league table after arranging RM9.70bil worth of sukuk issuance, garnering a 25.9% market share. Out of 20 countries worldwide, Malaysia was ranked third in terms of total Shariah-compliant assets at US$196.820mil, with 41 institutions offering Shariah services, representing 63.7% of the total population.

Just as conventional finance, Islamic finance has been vulnerable to fits and starts, to severe and disquieting hiccups whenever sound economic rules are being ignored. Last year showed how intertwined its future and health is with what happens to the global economy, and for that reason, the performance of an economy will significantly affect the growth of Islamic finance, says CIMB Islamic CEO Badlisyah Abdul Ghani. He considers the Islamic finance industry lucky not to have been involved in subprime credit and not to have been heavily engaged in highly leveraged activities.
Badlisyah contends that whichever financial or fiscal problems that the GCC countries have been facing of late do not have a significant bearing on the stability of Islamic finance in this part of the world.
Considering the clear restrictions placed on the use of derivatives on Islamic transactions, Badlisyah does not believe that the ability of Islamic banks to manage their risk has been constrained or compromise

BUMIPUTRA-Commerce Holdings Bhd, said it received approval from the Securities Commission for the sale of as much as RM 2 bn Sukuk, to be made availabl to CIMB Islamic Bank.