IslamicFinance.de

Reuters reported on 7 January that Indonesia's finance ministry plans to issue Sukuk for retail investors in February to help finance the state budget said Rahmat Waluyanto, treasury director general at the finance ministry. The yield shall be announced on 5 February and be offered till 20 February, listing on the bourse follows on 26 February.

Guardian reported based on Reuters on 7 January that market volatility wiped out all of the asset gains made by the Islamic fund management industry in the year to September 2008, citing US-based research and data provider Cerulli Associates. Sharia-compliant fund managers had assets of USD 65 bn at the end of the 3rd quarter 2008, including assets managed via discretionary mandates for institutions and high net-worth individuals and mutual funds. Assets invested in Islamic-compliant mutual funds rose by 50 % while the number of such funds doubled in the three years to 2008. Islamic mutual funds alone accounted for USD 35 bn-- up from USD 23.2 bn gathered in 2005. Sukuk funds remained a rare offering. Once markets stabilise this industry can potentially expand at a rate of above 10 % a year, the report said. Saudi Arabia is currently the largest domestic market for shariah investments. Challenges named in a poll by Cerulli were named the Sharia compliance costs, convincing investors of the Sharia compliance, the discrepancy in Sharia standards and the lack of 3rd party distribution.

Report order form: http://www.cerulli.com/pdfs/2008_Shariah_Info_Packet.pdf

Reuters reported on 6th January that Brunei has sold Brunei Dollar 148 million (USD 100.7 mn) of short-term Sukuk, it sold the bonds in four different issuances, with maturity periods ranging from 91 days to 364 days.
This brings total government issuance to Brunei Dollar 1.3 bn to date. Brunei government has been issuing Islamic debt since April 2006.

Reuters reported on 31 December that Indonesia plans to issue international bonds, and Sukuk. Timing is not scheduled yet. Treasury Director General Rahmat Waluyanto was quoted.

More background: http://in.reuters.com/article/asiaCompanyAndMarkets/idINJAK38567320081231

Reuters reported on 30 December that Japanese investors have expressed interest in developing Islamic capital market products, according to a local newspaper quoting Aseambankers Chief Executive Officer Mohammed Rashdan Mohammed Yusof. No company names were disclosed in the interview, however Aseambankers, the investment bankers of Maybank Group plans to develop the Sukuk market in Japan.

Manabu Hara reported on 12 December in Asahi Newspaper that the Japanese Government has taking a step more to introduce Islamic finance. Earlier this month, the Financial Services Agency (FSA) amended financial regulations to let bank subsidiaries handle Islamic finance operations. But still Murabaha transactions are subject to tax issues.

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IslamicFinance.de

Philip Liu CENS.com reported on 2 April that it plans to roll out Islam ETF in the second quarter this year.

The firm is also in talks with Morgan Stanley Capital International (MSCI) for licensing of its Taiwan Islam Index for use in issuing the Islam ETF in Abu Dhabi. The MSCI Taiwan Islam Index consists of 60 constituent stocks, selected from the over 120 constituent stocks of MSCI Taiwan Stock Index, whose operations conforms to the tenets of Islam.

Liu Tsung-sheng is president of Polaris Investment Trust.

Source: http://news.cens.com/cens/html/en/news/news_inner_22868.html

Trade Arabia reported on 28 April that the RM 500 mn Sukuk issues is approved by the market regulator.

Bank Islam Malaysia and Kuwait Finance House (Malaysia) are the joint principal advisers, lead arrangers and lead managers for the issue.

Kuwait Finance House shall be the guarantor for the sukuk programme. Malaysian Rating Corp has assigned a long-term rating of AA+(bg) for the issue.

Source: http://www.tradearabia.com/news/newsdetails.asp?Sn=CM&artid=142568

The Guardian reported on 25 April that Pakistan appointed advisers for first domestic Sukuk, being Dubai Islamic Bank and Standard Chartered Bank Pakistan as Managers. The estimated size of the Sukuk might be 20 bn Pakistani rupees.

Ashfaque Hasan Khan is special secretary at the Finance Ministry.

Source: http://www.guardian.co.uk/feedarticle?id=7484821

The Star Malaysia reported on 22 April that CIMB group intends to expand its Islamic banking business in Dubai and Saudi Arabia via acquisitions.

The group via Bumiputra-Commerce Holdings Bhd recently acquired a 19.99% stake in China-based Bank of Yingkou Co Ltd.

CIMB group chief executive is Datuk Nazir Razak.

Source: http://biz.thestar.com.my/services/printerfriendly.asp?file=/2008/4/22/b...

Mahanum Abdul Aziz reported on 19 April on Bernama that Takaful Ikhlas Targets RM 70 mn in premium from its government housing loan scheme.

Syed Moheeb Syed Kamarulzaman is president and chief executive officer.

Source: http://www.bernama.com.my/bernama/state_news/news.php?id=327888&cat=st

Bernama reported on 18 April that Lingkaran Trans Kota Sdn Bhd (Litrak) fully redeems senior and junior debt issues.

RAM said, it will maintain surveillance on the AA2 ratings of Litrak's Sukuk Musyarakah Islamic Medium-Term Notes I Programme of up to RM1.15 billion and Sukuk Musyarakah Islamic Medium-Term II Programme up to RM300 million, as well as the P1 rating of the company's Islamic Commercial Papers Programme of up to RM100 million.

All the long-term ratings have a stable outlook, it said.

Source: http://www.bernama.com.my/bernama/v3/news_business.php?id=327699

Eileen A. Mencias reported in Manila Standard Today on 15 April that the Philippine Government plans a USD 900 - 1000 mn 5-year sukuk through Al-Amanah Islamic Bank to provide a long-term financing package for the acquisition of the Metro Rail Transit-3 project along Edsa to replace bridge finance by the Development Bank Philippines (DBP). First Metro is teaming up with the DBP to arrange the Sukuk bonds. DBP is in the process of taking over control of Al-Amanah Islamic Bank. CIMB and Islamic Development Bank are supposed to assist in structuring.

Juanchito Dispo is executive vice president of First Metro Investment Corp.

Source: http://www.manilastandardtoday.com/?page=business2_april15_2008

Deal Journal reported on 10 April about potential ambitions of Hong Kong based corporations to issue Sukuk. Those companies cited include the Airport Authority Hong Kong, which is wholly government-owned. The Chinese newspaper Mingpao is cited that the other firms are rail operator MTR Corp. and Hong Kong Mortgage Corp.

MTR denied it is planning an Islamic bond issue.

Source: http://blogs.wsj.com/deals/2008/04/10/hong-kong-considers-islamic-bonds/

Gan Yen Kuan reported on 10 April in The Edge Daily that MNRB Holdings Bhd has proposed to invest GBP 8.96 mn in the non-listed British Islamic Insurance Holdings Ltd (BIIH), being an equity stake of maximum 9.99 % based on a private placement effort. MNRB aims to diversify the business and to expand into international business and the potentially lucrative market in Europe.

MNRB is Malaysia’s largest re-insurer.

BIIH has an authorised share capital of GBP 100 mn. Its issued and paid-up share capital is GBP 4.1 mn with a share premium of GBP 42.1 mn. It is incorporated on 27 February 2006.

BIIH has two wholly owned subsidiaries, namely BIIH General Ltd (BIIG) and BIIS Ltd., both have yet to obtain permission from the UK’s Financial Services Authority (FSA) to carry out their respective business in general insurance and insurance intermediation services.

BIIH is unlisted but aims to be listed on the Alternative Investments Market in London and on one or more suitable GCC based exchanges later.

Source: http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Artic...

The New Nation, Bangladesh reported on 10 April that Prime Finance and Investment Limited has signed an agreement with Takaful Islami Insurance Limited to manage their proposed Initial Public Offering (IPO).

Md Akter Hossain Sannamat is Managing Director of Prime Finance & Investment Limited.
Abul Kashem Chowdhury is Managing Director of Takaful Islami Insurance Limited.
Md. Fazle Azim is Chairman of Takaful Islami Insurance Limited.

Source: http://nation.ittefaq.com/issues/2008/04/10/news0012.htm

Souhail Karam reported on Reuters, 13 April, on the profit rise of 2.1 % of Saudi-based Rajhi Bank in Q1 from core business operations.

Net Income from investment rose 11.5 % to SAR 2.03 bn. Income from banking services increased 18 % to SAR 454 mn. Growth is targeted by diversifying its sources of revenue, developing the investment and corporate banking sectors along with retail banking. According to analysts posted profits could be even higher, but were impacted by the cost of international expansion.

Rajhi plans to add 160 branches in Saudi Arabia by mid-2008.

Chief Executive is Abdullah Sulaiman al-Rajhi.

Source: http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/id...

Dear Members,

Please share your opinion about the following proposal in regard to

- Academic Research Papers

This forum could facilitate to publish your research papers and having them rated by peers afterwards. This would speed up the time from production to publishing tremendously compared to traditional journals.

It also gives a chance to see unusual papers published, however, a good number of submissions might be of lower quality at the same time.

The action question: Is there interest in the community to use such a platform in this way???

Please comment!!!

Gulf News reported on 11 April that Gulf Finance House aims to develop the USD 10 bn Caspian Energy Hub in collaboration with the Government of Kazakhstan and PFC Energy International and signed a Memorandum of Understanding. The project, shall be a services hub that caters to commercial, technical and human resource needs of the oil and gas industry in the Caspian region. The hub also aims to become a global technical training centre for the oil & gas industry.

Esam Janahi is chairman of Gulf Finance House, Vahan Zanoyan is CEO of PFC Energy International and both presented the concept to Kazakhstan President Nursultan Nazar. Ulf Wokurka is deputy chairman of the Management Board of Kazakhstan Holding for Management of State Assets. Gani Uzbekov is deputy chairman of the Board of Sustainable Development Fund called "Kazyna".

Source: http://archive.gulfnews.com/business/Oil_and_Gas/10204695.html