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Posts Tagged ‘Sukuk Ijara

Singapore launches first Islamic bond programme

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Points of Essence:

  • Singapore issues its first sovereign Al Ijarah Sukuk worth $134m to attract petro dollar investment to the city state. It remains to be seen whether this new issuance will jolt up the Islamic bond issuance in 2009 as the market is still reeling from the aftershock of AAOFI’s non-compliance assertion. The global economy slowdown does not help much either. Guardian has the report.

By Saeed Azhar

SINGAPORE, Jan 19 (Reuters) – Singapore launched its first islamic bond programme, worth a total of S$200 million ($134 million), to promote Islamic finance in Southeast Asia’s financial capital.

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Written by Suapi Shaffaii

January 21, 2009 at 11:04 am

Posted in General Issue

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First auction of government’s Ijara Sukuk on September 15

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Points of Essence:

  • SBP has fixed September 15 to hold the first auction of a domestic bound Ijarah Sukuk with its target sale set at Rs10 billion . It is offered primarily to alleviate the Pakistani Government’s debt with the central bank.
  • The market however appears to be skeptical  about the bond as the current Islamic banks’ deposits which stood at Rs 147.361 billion at end of 2007 is too small to offer the Government any relief. Furthermore, there would not be any interest from corporations as justified by the small target set for the bond. There was also no disclosure on how frequently would the auctions of Sukuk bonds be held.
  • If there is any consolation, the issuance of bond would greatly help the Islamic banks in their liquidity management issues as they are currently awashed with unutilised funds.

By Mushfiq Ahmad

KARACHI: The State Bank of Pakistan has finally announced that the first auction of Ijara Sukuk in the domestic market would be held on September 15. It has set a target of Rs 10 billion.

The government aims to reduce its borrowing from the central bank through sale of sukuk bonds in domestic market. However, it looks unlikely that sukuk issue would be able to offer the government much help. The government last year borrowed more than Rs 688 billion from the central bank to finance its fiscal deficit. According to the “latest” Islamic Banking Bulletin of State Bank of Pakistan, Islamic banks’ deposits stood at Rs 147.361 billion at end of 2007. With such a small deposit base, it is unlikely that the government would be able to get much out of Islamic banks.

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Written by Suapi Shaffaii

September 11, 2008 at 7:17 pm

Govt launching Ijara Sukuk this week: Akhtar

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Points of Essence:

  • Pakistan Government has launched Ijara Sukuk to enhance its money market sector. This will help Islamic banks to be in parallel with their conventional counterparts in terms of the instruments availability for their liquidity management purpose.

Pakistan is working to launch the first Ijara Sukuk in the first week of Ramadan.

KARACHI: Dr Shamshad Akhtar, Governor State Bank of Pakistan, has said the government and the State Bank were working to launch the first government of Pakistan Ijara Sukuk in the first week of the Holy Month of Ramadan in order to support the efforts to diversify the borrowings mix.

“This will not only help deploy the liquidity available with Islamic banks but also help the government to diversify its debt,” she said in a press statement issued on Thursday.

She added that given the growth in the Islamic banking industry, Shariah-compliant government securities were imperative to bring the Islamic banks parallel to their conventional counterparts in terms of instruments available for liquidity management.

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Written by Suapi Shaffaii

September 8, 2008 at 10:05 am