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Posts Tagged ‘Sukuk

HSBC Amanah To Issue Innovative Sukuk For Retail Investors

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Points of Essence

  • HSBC Amanah is mulling issuance of an innovative sukuk for retail investors this year
  • The planned sukuk is intended to increase presence in the bond market by retail investors 
  • With 15 branches so far in Malaysia and leveraging on its global group, the bank is poised to grow its offering of Shariah compliant products.

By Dalila Abu Bakar

KUALA LUMPUR, Jan 10 (Bernama) — HSBC Amanah Malaysia Bhd, a subsidiary of HSBC Bank Malaysia, plans to introduce an innovative sukuk this year for retail investors to maintain HSBC’s position as a leading sukuk house.

“Malaysia is one of the deepest markets for Islamic bonds but we still do not have an active retail market.

“We need to launch a retail bond product so that the retail investors could share the sukuk pie,” chief executive officer Rafe Haneef told Bernama in an interview.

Rafe said Malaysia made up 60 per cent of the total global sukuk issuance last year but the Syariah bonds were subscribed mostly by institutional investors.

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Written by Suapi Shaffaii

January 10, 2012 at 10:14 pm

Posted in Islamic Financial Institutions

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Islamic Development Bank Plans to Issue Sukuk

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Points of Essence:

  • IDB will issue sukuk to source aid funds for crisis affected member countries. For this purpose, a team has been set up to address the impact of the global financial crisis and identify investment projects in Muslim countries. Another team was was also established led by the Malaysian former premier, Tun Dr Mahathir Muhammad to set the new vision for the IDB to better assist Muslim countries and coordinate the cooperation among them for their mutual benefits. Zawya has the report.

JEDDAH – The Islamic Development Bank (IDB) will issue Sukuk (Islamic bonds) in order to collect funds from the international market place so as to support member countries affected by the global financial crisis.

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Written by Suapi Shaffaii

November 28, 2008 at 11:43 pm

Posted in General Issue

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Singapore Develops Sukuk Issuance Facility To Promote Islamic Finance

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Points of Essence:

  • Singapore is set to provide a sukuk issuance facility to promote Islamic finance in the city-state. Financial institutions have already expressed interest and the first issuance is expected to be out early next year.

SINGAPORE, Nov 24 (Bernama) – Singapore is in the final stages of setting up a sukuk issuance facility to provide Syariah-compliant regulatory assets to financial institutions as part of its efforts to promote the growth of Islamic finance in the city-state.

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Written by Suapi Shaffaii

November 24, 2008 at 6:35 pm

Posted in Islamic Finance Product

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West turning to sukuk as debt markets dry up

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Points of Essence:
  • Western companies had found relief in Sukuk being an alternative funding as the credit crunch left many established financial institutions in tatters. However, it may not provide panacea to the plight of those companies as the market for Islamic bonds is declining with the value of issuances shrunk nearly 40 % year-on-year in the first eight months of 2008.

Western companies unable to secure debt from conventional lending sources are turning to Islamic bonds, or sukuk, for alternative funding, the secretary general of the Association of Southeast Asian Nations (ASEAN) said on Wednesday.

Surin Pitsuwan, former Thai foreign minister, was speaking at a summit held by eight ASEAN finance ministers in Dubai, who were discussing the economic outlook for Southeast Asian countries.

“I think foreign companies realise there are alternatives and they will explore more, and look at new initiatives at Islamic banks to draw more capital and resources to service their clients. This is certainly growing,” Pitsuan told Arabian Business on the sidelines of the conference.

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Written by Suapi Shaffaii

October 10, 2008 at 11:37 am

Posted in General Issue

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Unicorn Investment Bank buys Bahrain Financing Co

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Points of Essence:

  • Unicorn Investment Bank of Bahrain mulls acquiring conventional banks in Europe, Southeast Asia and the Gulf and converting them into Shariah compliant banks. Bahrain Financing Co was its first purchase apart from a subsidiary already established in Malaysia.
  • Despite a gloomy financial setting around the globe, the Bank is ready to issue $1.5 billion worth of sukuk in the Gulf region by the end of this year.

by Jason Benham

Bahrain-based Unicorn Investment Bank said on Sunday it was looking to spend up to $2 billion to buy banks in Europe, Southeast Asia and the Gulf and plans to arrange $1.5 billion of Islamic bonds by year end.

Fred Stonehouse, head of strategic mergers and acquisitions at the Islamic bank, said it planned to convert any banks it acquires to comply with Islamic banking rules that ban interest.

“In the UK we see potential businesses (banks) we could acquire and Islamicise as appropriate,” he told Reuters.

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Written by Suapi Shaffaii

October 7, 2008 at 11:38 am

Tamweel plans $544m Sukuk despite crunch

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Points of Essence:

  • Tamweel plans to launch up to Dh2 billion ($544.5 million) in Islamic bonds for local market consumption in the first quarter of 2009, asserting that the global liquidity squeeze had only affected certain companies in the financial sector.

Dubai-based Islamic mortgage lender Tamweel said on Monday it was planning to launch up to Dh2 billion ($544.5 million) in Islamic bonds in the first quarter of 2009 despite the global liquidity crunch.

“There are ideas to sell sukuk to the local market. They would be in the range of Dh1-2 billion,” Tamweel chairman Sheikh Khaled Al-Nahayan told Reuters on the sidelines of a property fair.

“Already there is a desire (for sukuk),” he said, adding that the liquidity squeeze had only affected certain companies in the financial sector.

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Written by Suapi Shaffaii

October 6, 2008 at 10:26 pm

Sukuk offerings witness 39% slowdown this year

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Points of Essence:

  • The global credit crunch has caused the demands for Sukuk issuance in 2008  to dwindle as the liquidity dried up, with a decline rate of more than 39% this year to rest at only $14 billion compared with $23 billion last year. The recent exposure by AAIOFI on questionable Shariah compliance issues affecting some sukuk issuance has certainly no bearing on this downfall.

Tight liquidity in the global and regional markets is responsible for the slowdown in the issuance of sukuk in 2008, which has seen a decline of more than 39 per cent in the first eight months of this year to $14 billion (Dh51.42bn), as opposed to $23bn registered in the same period last year.

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Written by Suapi Shaffaii

October 6, 2008 at 8:07 pm