IslamicFinance.de

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.

According to CIMB Group Holdings Bhd and RHB Capital Bhd, the rally in ringgit-denominated Islamic bonds that pushed yields to an eight-month low will stop after the central bank ruled out a cut in interest rates.
After the interview with Bank Negara Malaysia Governor Zeti Akhtar Aziz, yields may rise.The governor noted that the benchmark policy rate of 3 percent is supportive of economic growth ahead of a March 9 review.
Overseas funds reduced holdings of local-currency government Islamic bonds by 11 percent in January to RM490 million (US$163 million), the least in a year.

It seems that Khazanah Nasional Bhd. hired BOC International, CIMB Group Holdings Bhd and Royal Bank for a sale of the world's first yuan-denominated Islamic bonds in Hong Kong.
The offering will help Malaysia maintain its strengt and position as the world's biggest launcher of sukuk.