Tagged: Business Times

Islamic bonds set for new heights

Islamic Finance

Islamic bonds set for new heights

<p>The global sukuk market is poised for a record-breaking year, according to Standard Chartered Saadiq's chief executive officer Wasim Saufi. Standard Chartered expects demand for Islamic bonds to help push sales to levels unseen before this year although Islamic bond sales fell by as much as 11 per cent for the first six months of the year. Wasim said several issuances are in the pipeline, including a few being evaluated for dollar sukuk to be issued by Malaysian companies. One that is in the pipeline is Khazanah Nasional&rsquo;s sale of US$1 billion of convertible Islamic bonds. Ernst &amp; Young LLP in a December 2012 report predicted that the global demand for sukuk will reach US$950 billion by 2017. According to Bloomberg-compiled data, global sukuk sales hit US$18.8 billion in the first half of the year.</p>
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<p><a href="http://www.btimes.com.my/Current_News/BTIMES/articles/20130811230531/Article/index_html" title="http://www.btimes.com.my/Current_News/BTIMES/articles/20130811230531/Article/index_html">http://www.btimes.com.my/Current_News/BTIMES/articles/20130811230531/Art…</a></p>
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Islamic bonds set for new heights

Islamic Finance

Islamic bonds set for new heights

<p>The global sukuk market is poised for a record-breaking year, according to Standard Chartered Saadiq's chief executive officer Wasim Saufi. Standard Chartered expects demand for Islamic bonds to help push sales to levels unseen before this year although Islamic bond sales fell by as much as 11 per cent for the first six months of the year. Wasim said several issuances are in the pipeline, including a few being evaluated for dollar sukuk to be issued by Malaysian companies. One that is in the pipeline is Khazanah Nasional&rsquo;s sale of US$1 billion of convertible Islamic bonds. Ernst &amp; Young LLP in a December 2012 report predicted that the global demand for sukuk will reach US$950 billion by 2017. According to Bloomberg-compiled data, global sukuk sales hit US$18.8 billion in the first half of the year.</p>
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<div>Source:&nbsp;</div>
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<p><a href="http://www.btimes.com.my/Current_News/BTIMES/articles/20130811230531/Article/index_html" title="http://www.btimes.com.my/Current_News/BTIMES/articles/20130811230531/Article/index_html">http://www.btimes.com.my/Current_News/BTIMES/articles/20130811230531/Art…</a></p>
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Templeton favours local firms on recovery

ASIA / Islamic Finance

Templeton favours local firms on recovery

Franklin Templeton Investments and ECM Libra Financial Group Bhd say they are favouring Malaysian corporate sukuk, which has outperformed as the Federal Reserve considers ending stimulus. Corporate sukuk benefits from a higher degree of scarcity than f…

Global sukuk sustains first loss in over 3 years

Islamic Finance

Global sukuk sustains first loss in over 3 years

Investors in Islamic bonds are losing money for the first time in more than three years in the second quarter as concern that the US Federal Reserve will withdraw monetary stimulus upended a rally that returned 33 per cent. Redemptions from emerging-ma…

Takaful Malaysia sets 15pc no claim rebate

ASIA / Islamic Finance

Takaful Malaysia sets 15pc no claim rebate

Syarikat Takaful Malaysia Bhd will offer an additional 15 per cent no claim rebate to all its participants in the general and selected family takaful products. Moreover, the company will increase its value added service delivery amidst tougher competit…

TM: Enough cash to redeem RM2b sukuk

ASIA / Islamic Finance

TM: Enough cash to redeem RM2b sukuk

Telecom Malaysia (TM) has enough cash to redeem its RM2 billion sukuk that will mature on December 31, according to its senior officials. TM has RM3.7 billion in cash and bank balances as at end-2012, its chief financial officer Datuk Bazlan Osman said. Therefore, the group does not see any need to issue more bonds to raise funds for now, he added. TM’s healthy reserves were lifted by a year-on-year growth in net income of 6.1 per cent from RM1.19 billion in 2011 to RM1.26 billion last year. This was largely helped by a 9.2 per cent revenue growth from RM9.15 billion in 2011 to RM9.99 billion last year, which TM claimed is the highest in the industry.

UK aims to boost role in Islamic finance

Islamic Finance

UK aims to boost role in Islamic finance

Prime Minister David Cameron is looking to Southeast Asia to boost the UK’s role in Islamic finance. It’s the Bank of England he needs to convince first, say Shariah-compliant lenders based in Britain. Central bank rules require lenders to hold easy-to-sell assets as protection against short-term funding shocks. Most are off-limits for Islamic banks because they pay interest. Cameron visited Malaysia last year to build on a pact to promote bilateral engagement in the industry and created an Islamic Finance Task Force in March. Britain’s six Shariah-compliant lenders will struggle to grow unless regulators adapt bank liquidity rules or highly rated borrowers issue sukuk in pounds.

Bank Muamalat eyes US$300m from IPO

ASIA / Islamic Finance

Bank Muamalat eyes US$300m from IPO

Indonesian syariah lender PT Bank Muamalat Indonesia Syariah aims to raise up to US$300 million (RM912 million) through an initial public offering of at least 20 per cent of its capital. The IPO, subject to approval by the market regulator, is expected…

S&P sees Malaysia leading sukuk

ASIA / Islamic Finance

S&P sees Malaysia leading sukuk

Malaysia is dominating global sales of sukuk in 2013 and Standard & Poor’s forecasts the trend will continue this year. Issuance in the Southeast Asian currency may account for more than 74 per cent of worldwide offerings, compared with 49 per cent in 2008. Global sales of Shariah-compliant notes, including government securities, may exceed US$100 billion in 2013 after rising 64 per cent to US$138 billion last year. Malaysia’s Islamic banking assets climbed 14 per cent last year to a record RM494.6 billion. Moreover, Shariah insurers, or takaful operators, saw assets rise 12 per cent to RM19 billion.

HSBC Amanah on rural expansion drive

ASIA / Islamic Finance

HSBC Amanah on rural expansion drive

Islamic banks in Malaysia and Indonesia are opening new branches in rural areas as they target the newly rich in Southeast Asia’s largest Muslim nations. HSBC Amanah Malaysia Bhd added 22 outlets in the last three years, bringing the total to 26 across the country. PT BRI Syariah, a unit of PT Bank Rakyat Indonesia, will set up 94 branches in 2013 to meet demand in smaller cities. The bank predicts its shariah-compliant savings will increase 73 per cent to a record 19 trillion rupiah (US$1.9 billion). Besides, increasing savings may help spur demand for sukuk as banks look to invest their funds and boost returns.