IslamicFinance.de

Together with Fintech Indonesia Association, Deloitte released the Fintech Survey 2016 at the Indonesia Fintech Festival & Conference 2016. Conducted between June to August 2016, the survey interviewed 70 respondents from various Indonesian fintech companies. 27 different types of fintech companies participated in the survey. All of them shared three major concerns. A great number of fintech players agreed that the current regulatory process is "not so clear." Another pressing matter faced by Indonesian fintech players is talent shortage. The third concern is the local market’s low levels of financial education. Ironically, this problem happens not only among members of the general public but also among players in the conventional finance industry.

The Thomson Reuters Global Sukuk Index is at 116.80989 points, down from 117.25342 at the end of last month but up from 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 114.94150 points against 115.35741 at end-November and 113.69014 at end-2014. Some of the sukuk in the pipeline are: Singapore's Vallianz Holdings said that a subsidiary would refinance loans with a Saudi riyal-denominated sukuk issue of up to 1.1 billion riyals ($293 million). Malaysia's Wego Sdn Bhd proposed a sukuk musharaka issue of up to 210 million ringgit ($49 million). Indonesian airline Garuda intends to raise $500 million through selling global bonds or sukuk next year to refinance debt.

The Thomson Reuters Global Sukuk Index is at 117.04371 points, down from 117.25342 at the end of last month but up from 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 115.22131 points against 115.35741 at end-November and 113.69014 at end-2014. Some of the sukuk in the pipeline are: Qatar's Barwa Bank has listed a $2 billion Islamic bond programme on the Irish Stock Exchange. A unit of Malaysia's Ahmad Zaki Resources signed a guaranteed sukuk murabaha facility agreement with Bank Pembangunan Malaysia and Maybank Investment Bank for a guaranteed Islamic medium-term note facility of up to 1 billion ringgit ($238 million). Malaysia's Scientex said in early December that a unit had resistered with the Securities Commission a 15-year sukuk murabaha programme with a value of up to 500 million ringgit.

Dubai Islamic Bank will require capital in 2016 to boost its capital adequacy ratios, the bank's chief executive said on Wednesday. DIB's total capital adequacy ratio, a combination of Tier 1 and Tier 2 capital -- regarded as one of the key indicators of a bank's health -- stood at 16.5 percent at the end of the third quarter, up from 14.9 percent at the end of 2014, Adnan Chilwan said in an analysts' conference call.

The Thomson Reuters Global Sukuk Index is at 118.57859 points, up from 117.98384 at the end of last month and 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 117.13560 points against 116.82783 at end-September and 113.69014 at end-2014. Some of the sukuk in the pipeline are: Dubai-based retail and leisure developer Majid Al Futtaim has picked banks to arrange a potential U.S. dollar-denominated sukuk issue. Albaraka Turk has picked seven arrangers for a potential dollar-denominated sukuk issue to bolster its supplementary capital. The Tunisian government expects next year to launch a delayed sukuk issue for 1 billion dinars ($513 million).

The Thomson Reuters Global Sukuk Index is at 118.38699 points, up from 117.98384 at the end of last month and 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 116.98763 points against 116.82783 at end-September and 113.69014 at end-2014. Among the sukuk in the pipeline are the following: The Tunisian government expects next year to launch a delayed sukuk issue, its first, for 1 billion dinars ($513 million). South Africa would like to issue more sukuk so there is enough liquidity to build an investment curve. Qatar Islamic Bank was to hold investor meetings in Asia, the Middle East and Europe from Oct. 16 for a possible benchmark offer of U.S. dollar sukuk.

Sunrise Properties has secured a 515 million dirham ($140.22 million) Islamic loan for the development of a luxury hotel project, banking group Emirates NBD, the main arranger of the deal, said. Emirates NBD, joined by Doha Bank, are providing the money to finance the Emerald Palace Kempinski Hotel project on Dubai's Palm Jumeirha group of islands. The tenure and margin on the murabaha-structured loan were not disclosed. Bank lending to real estate sector remains buoyant, with credit to the construction and real estate sector totalling 216.2 billion dirhams in the second quarter of this year from 210.6 billion dirhams in the year ago period.

The International Bank of Azerbaijan (IBA), the country's largest and the only state-owned bank, has closed its Islamic banking department. Behnam Gurbanzade, IBA's director of Islamic banking, said the department was closed last week, but did not give the reasons. The department started the service in April 2013. The decision was reportedly linked to structural changes in the bank.The bank's Islamic assets rose to $526 million at the end of 2014 from $160 million a year earlier. "The agreements signed with international financial institutions within the framework of Islamic banking, as well as the bank's liabilities in this area will remain in force.

The Thomson Reuters Global Sukuk Index is at 118.10483 points, up from 117.98384 at the end of last month and 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 116.80733 against 116.82783 at end-September and 113.69014 at end-2014. Some of the sukuk in the pipeline are: Oman will open subscriptions on Oct. 8 for its first sovereign issue of sukuk; the rial-denominated sukuk will have a tenor of five years, and the size of the issue will be decided on completion of a book-building exercise. Turkish Islamic bank Kuveyt Turk has picked seven banks to arrange a potential U.S. dollar-denominated sukuk issue. The Pakistani government plans an international sukuk issue, likely to be worth $500 million, next year.

The Thomson Reuters Global Sukuk Index is at 118.31951 points, up from 117.69120 at the end of last month and 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 117.20440 against 116.46023 at end-August and 113.69014 at end-2014. Some of the sukuk in the pipeline are: Turkish Islamic bank Kuveyt Turk has picked seven banks to arrange a potential U.S. dollar-denominated sukuk issue to bolster its supplementary or Tier 2 capital. The Pakistani government plans an international sukuk issue, likely to be worth $500 million, next year. Malaysia Building Society is finalising plans to offer up to 900 million ringgit ($214 million) in structured sukuk, probably later in the month.

The Thomson Reuters Global Sukuk Index is at 117.85853 points, up from 117.69120 at the end of last month and 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 116.67619 against 116.46023 at end-August and 113.69014 at end-2014. Some of the sukuk in the pipeline are: Malaysia Building Society is finalising plans to offer up to 900 million ringgit ($214 million) in structured sukuk, probably later in the month. The Indonesian government plans to offer project-based sukuk worth 13.7 trillion rupiah ($953 million) next year. The financing arm of China's HNA Group, owner of Hainan Airlines, plans to make an offshore sukuk issue of benchmark size before year-end.

Turkish Islamic bank Albaraka Turk has secured a $450 million dual-tranche murabaha loan, the proceeds of which will be used to expand its financing activities in the country. The bank closed a $278-million portion and a 154.5 million- euro ($174.7 million) tranche in the 367-days and 733-days tenures paying profit margins of 1.1 and 1.25 percentage points over the London interbank offered rate/Euro interbank offered rate respectively. Sixteen investors participated in providing the murabaha facility from Europe and the Middle East and North Africa region. Due to the oversubscription, Albaraka Turk decided to increase the facility size to $450 million instead of $400 million as originally planned.

The Thomson Reuters Global Sukuk Index is at 117.83027 points, up from 117.69120 at the end of last month and 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 116.41248 against 116.46023 at end-August and 113.69014 at end-2014. Sukuk in the pipeline include: SapuraKencana Petroleum, a Malaysian oil and gas services firm, said in early September it would launch a $200 million sukuk, to be issued on Sept. 8. Aluminium Bahrain is seeking a credit rating ahead of talks with banks about fund-raising for its $3.5 billion Line 6 expansion. A banking source said a bond or sukuk could be issued before end-2015 or early in 2016.

The International Finance Corp (IFC), the World Bank's lender to the private sector, has received a preliminary AAA rating from Standard & Poor's for a proposed $100 million issuance of sukuk. Proceeds of the sukuk would be used to purchase a portfolio of diversified sharia compliant receivables and other assets, the credit rating agency said in a statement. The transaction would match the size of the last sukuk issued by IFC in 2009, a five-year deal which was listed on the Dubai and Bahrain bourses. The latest sukuk from IFC would rank on the same level as other senior unsecured financial obligations from the multilateral lender, S&P said.

The Thomson Reuters Global Sukuk Index is at 118.39852 points, up from 118.20147 at the end of last month and 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 117.20366 against 116.92144 at end-July and 113.69014 at end-2014. Some of the sukuk in the pipeline are: Saudi Arabia's Al Othaim Real Estate and Investment Co is marketing a five-year debut sukuk issue which could raise up to 1 billion riyals ($267 million) for the company. Tunis-based Best Lease aims to raise up to 30 million dinars ($15.6 million) via sukuk to finance its growth. Kuwait is preparing legislation to facilitate issues of sukuk by the government as it assesses options to finance a big budget deficit.

Lloyd's of London plans to apply for an onshore reinsurance licence and open an office in Malaysia, as part of its push into emerging markets. The licence application follows confirmation from the British and Malaysian governments. It is also targeting the Islamic insurance market. Lloyd's chairman John Nelson said around $130 million in business was written for Malaysia, but said an onshore presence would likely enable that figure to grow, without giving a target. Lloyd's said the licence is an opportunity to develop its marine, energy, construction, engineering and liability business, as well as introduce new products to the market.

The Thomson Reuters Global Sukuk Index was at 118.20147 points at the end of last month, up from 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index was at 116.92144 at end-July against 113.69014 at end-2014. Some of the sukuk in the pipeline are: Kuwait is preparing legislation to facilitate issues of sukuk by the government. Ivory Coast will launch the first tranche of a local currency sukuk programme this year, selling 150 billion CFA francs ($252 million). Malaysia's West Coast Expressway Sdn Bhd plans a guaranteed 1 billion ringgit ($265 million) sukuk murabaha programme to fund a highway project.

The chairman of Abu Dhabi's government-owned Al Hilal Bank has resigned, a week after the chief executive quit. Ahmed Ateeq al-Mazrouei, chairman since 2008, has left for personal reasons. Senior board member Mohamed Abdullah al-Rumaithi has been appointed to succeed him. Last week Al Hilal's chief executive Mohamed Jamil Berro resigned, also citing personal reasons, after seven years with the bank. Al Hilal's profit for 2014 plunged to 90 million dirhams ($24.5 million) from 442 million dirhams in 2013 because of large loan impairments, according to the lender's latest financial statement. The bank's total assets grew to 41.4 billion dirhams from 38.7 billion dirhams.

The Thomson Reuters Global Sukuk Index is at 118.01254 points, up from 117.85307 at the end of last month and 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 116.67223 against 116.56666 at end-June and 113.69014 at end-2014. Sukuk in the pipeline include the following: Malaysia's West Coast Expressway Sdn Bhd plans a guaranteed 1 billion ringgit ($265 million) sukuk murabaha programme to fund a highway project. Bank Muscat has delayed plans to launch a 500 million rial ($1.3 billion) sukuk programme after the central bank rejected the proposal. Turkiye Finans Katilim Bankasi has invited banks to pitch for a potential dollar-denominated sukuk to bolster its supplementary capital.

The Thomson Reuters Global Sukuk Index is at 118.12333 points, up from 117.85307 at the end of last month and 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 116.96750 against 116.56666 at end-June and 113.69014 at end-2014. Some of the sukuk in the pipeline are: Malaysia's Sarawak Energy plans to issue 1 billion ringgit ($264 million) of sukuk. The company will offer tenors of 10 and 15 years and for the first time, 20 years. The Bahrain government announced a July 2-7 retail offer of 200 million dinars ($530 million) of 10-year sukuk ijara. Saudi Arabia-based Arab Petroleum Investments Corp mandated four banks for a debut international sukuk issue this year, off a $3 billion sukuk programme.