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Posts Tagged ‘Islamic Bond

Sukuk market’s recovery not likely until H2 next year; volumes to stay

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Points of Essence:

  • The strong tide against sukuk may not be over yet as it still faces the challenging battle ahead. It is not expected to ride out of the slump in the second half of 2009 as the global credit crisis worsens.
  • CIMB Islamic Bank has re-prioritized its banking business to consumer banking due to the economic crunch and minimize its investment activities to project more growth in the upcoming years.

KUALA LUMPUR: Demand for Islamic bonds, or sukuk, may not recover until the second half of 2009 at the earliest, as the global credit crunch crimps appetite for such financing, the head of the world’s largest sukuk arranger has said.

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Written by Suapi Shaffaii

November 22, 2008 at 9:01 pm

Malaysia to further liberalize its financial sector

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Points of Essence:

  • Malaysia is preparing a blueprint to further liberalize its financial sector, both conventional and Islamic Islamic financial sector as it is keen to attract foreign investments. This will boost its profile as a leader in the global Shariah bond market. The Guardian has the report.

Malaysia to further open sharia banking system

  • Reuters, Thursday November 20 2008

By Liau Y-Sing and Varsha Tickoo KUALA LUMPUR, Nov 20 (Reuters) – Malaysia will further open up its Islamic finance sector to foreign investors, the central bank chief said on Thursday, as it faces increasing competition to retain its position as the leader in the global sharia bond market.

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Written by Suapi Shaffaii

November 22, 2008 at 10:16 am

Thailand Plans First Islamic Bonds to Tap Arab Wealth (Update1)

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Points of Essence:

  • Thailand plans to issue a series of Islamic bonds  in the third quarter of 2007 as it seeks to tap the Middle East petrodollars. $600 million will be raised from the first issuance of the seven-year Islamic bonds to finance projects by the state corporations in Thailand.

By Suttinee Yuvejwattana

Sept. 24 (Bloomberg) — Thailand plans to raise $600 million from its first sale of Islamic bonds as it seeks to attract funds from the Middle East to pay for public works.

“We want to tap petrodollars as Middle East countries have lots of money,” Dheerasak Suwannayos, president of the state- owned Islamic Bank of Thailand, told reporters in Bangkok today.

Islamic Bank plans to sell seven-year Islamic bonds in the third quarter of 2009, Suwannayos said. State companies will use money raised from the securities, known as sukuk, to help finance their projects.

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Written by Suapi Shaffaii

September 25, 2008 at 12:58 am

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Malaysian mortgage firm eyes Gulf Islamic market

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Points of Essence:

  • As competition has become more intense at the home ground, Cagamas has joined the fray in venturing out overseas for possible business expansion. The oil money factor and growing appetite for Islamic bonds in the Middle East were simply irresistible.
  • The mortgage outfit will explore ways to create Islamic products that are acceptable to Middle East investors. It was among the world’s 10 largest issuers of Islamic bonds last year.

Malaysian mortgage firm Cagamas Bhd may help set up secondary Islamic mortgage companies in the Middle East and securitise loans from Gulf banks to tap rising demand for Islamic products in the region, its chief executive said on Tuesday.

Islamic banking players in mostly Muslim Malaysia are seeking overseas markets as a growing number of institutions compete for a modest market of 27 million people at home.

Malaysian firms are especially eager to court an estimated $300 billion of petrodollars from the Middle East, but some Gulf investors have shunned Malaysian Islamic products, saying they do not fully meet sharia, or Islamic law, standards.

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Written by Suapi Shaffaii

August 26, 2008 at 3:08 pm

Pakistan plans to issue first local currency Islamic bond next month

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Points of Essence:

  • Pakistan will issue rupee-dominated Islamic bond for its domestic market consumption in September.
  • The issuance will be handled by Standard Chartered Bank and Dubai Islamic Bank which would be less than Rs 20 billion than what the market had expected.
  • The Islamic bond will further stimulate the growth of the Islamic finance industry which shared 3.2% of the total banking system in Pakistan and only accounted for Rs 135 billion of assets.

Published: August 15, 2008, 23:58

Kuala Lumpur: Pakistan will issue its first local currency Sharia-compliant bond in September, a government official said yesterday, as the Muslim nation seeks to build its fledging Islamic finance industry.

Ashfaque Hassan Khan, special secretary at the Finance Ministry, said the issue size had not been determined although it would be “substantially less” than the Rs20 billion ($269.5 million) some bankers had earlier expected.

“We have already completed all the paperwork and we hope to be in the market sometime in Sep-tember,” Khan told Reuters by telephone. “This is the first time we will be going to the market with a rupee-denominated local sukuk.”

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Written by Suapi Shaffaii

August 16, 2008 at 2:24 am