IslamicFinance.de

Sarajevo's stock exchange launched an Islamic index, a first for the Balkans region. Director of the Sarajevo stock exchange, Tarik Kurbegovic, said the SASX-BBI Index includes 25 Bosnian firms which respect Islamic teaching and was set up in cooperation with Bosnia Bank International (BBI), founded by Gulf countries. BBI director Amer Bukvic said that with this index investment in Bosnia by Gulf countries would grow in a significant way during the next three to five years. In the last few years, Gulf businessmen have invested significantly in tourist and residential real estate in Sarajevo and the surrounding region. The goal of the Islamic index is to direct new investment towards the sectors of agriculture, tourism, metallurgic industry and energy.

International credit rating agency Moody's has downgraded the long-term deposit rating of Turkey’s Bank Asya to Caa1 from B2, placing the note on review against any further deposit volatility at the bank. Bank Asya's financial strength was also adjusted downward. According to Moody's statement, the downgrade reflects increasing external pressures that may exacerbate the bank's deposit volatility, which has already shown evidence of significant outflows this year. Depending on the existent deterioration of the bank's financial fundamentals, the bank would need to receive external support, and it would face higher potential losses in case of a deterioration in the quality of the bank's assets and its ability to pay its depositors, Moody's also said.

The Osun State government in southwestern Nigeria is planning to raise a sukuk bond worth 10 billion Nigerian nairas (some $62 million) from the capital market to fund infrastructural development. The state is awaiting final approval from the Security and Exchange Commission (SEC). The seven-year bond would be issued through a book-building process, which would earn returns for sukuk holders through a semi-annually paid rent structure called the Ijara. A local credit ratings agency, Agusto and Co, has given the note – to be listed on the Nigerian Stock Exchange – an A rating. The move as part of a 60 billion naira debt-raising program by Osun State, which started last year. The funds will be used to finance construction of education projects, among other development initiatives.

Prince Charles of Wales visited the headquarters of the Organization of the Islamic Cooperation (OIC) on Sunday. OIC Secretary General Ekmeleddin Ihsanoglu welcomed Prince Charles, and informed him about the activities of OIC aiming at scaling up food, energy and water security programmes in the OIC member states. The Secretary General and Prince Charles agreed on the need for regular exchange of views and information on energy and water issues.