Following the successful issuance in 2014 of a five year $1Bn Sukuk which attained an order book of $4.7Bn. The AA stable (S&P) / Aa1 stable (Moody's) / AA+ stable (Fitch) Government of the Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR) will begin investor meetings on 18 May.
Islamic bond sales in Malaysia jumped this month to the most since December 2013, adding to signs confidence is returning to the world’s biggest sukuk market.
Issuance was 24 percent higher than in March at 11 billion ringgit (US$3.1 billion), according to figures compiled by Bloomberg. Sovereign wealth fund Khazanah Nasional Bhd. accounted for 2 billion ringgit and DanaInfra Nasional Bhd, a state-owned company that funds subway construction, raised 3.5 billion ringgit.
Malaysia's $40 billion sovereignwealth fund Khazanah Nasional plans to issue a sukukworth up to one billion ringgit ($279.17 million) to help fundschools, its managing director said on Thursday. Speaking to Reuters on the sidelines of an Islamic financeevent in London, the fund's head Azman Mokhtar said the planned"social impact sukuk" is awaiting regulatory approval fromMalaysian financial regulators.
The rapid development of Islamic financial institutions and markets have enabled the penetration of mainstream finance and gaining relevance to global economic and financial flows, the National Commercial Bank said in its Saudi Economic Review for the month of January 2015.
On the Islamic equity front, the S&P 500 Shariah index ended 2014 standing at a record 1801.9, thus surging by 11.2% on a YTD basis. The USD 3-month murabahah deposit rate, the equivalent of an interbank offered rate, stood unchanged at 0.65% in 2014 compared to the 3-month LIBOR which averaged 0.23% on USD deposits in the same year.
The Malaysian Takaful Association (MTA) expects MYR10 million (US$2.76 million) in insurance claims to be filed by about 5,000 policyholders from areas ravaged by the recent floods in the East Coast of the peninsula, reported the state news agency Bernama.
“As of mid-January this year, takaful operators have already disbursed claims amounting to RM2 million filed by about 1,000 policy holders,” MTA chairman Ahmad Rizlan Azman said at a media conference last week.
Indonesia is the most regular issuer of global sovereign sukuk even as its Islamic banking assets and local-currency sales lag behind Malaysia.
Finance Minister Bambang Brodjonegoro said on Jan. 9 that the government will offer international sukuk in the first half, the fifth straight year it’s issued such debt. The Southeast Asian nation sold $5 billion of global sukuk in the past four years, compared with $3.25 billion for Malaysia and $2 billion for Qatar, data compiled by Bloomberg show.
Qatar's takaful (Islamic insurance) market is small compared with neighbouring countries such as Saudi Arabia and the UAE but has been in fast forward motion in view of its exponential economic growth in the last few years. Experts and industry leaders converse with Qatar Today on the issues facing the sector and also its prospects in the coming years.Notwithstanding the unrest that engulfed many countries such as Egypt, Libya and Syria in the Middle East in the last four years, the growth of the takaful industry continued unhindered in the Gulf Cooperation Council (GCC) as investors and companies expanded their operations in the region.
The Malaysian government plans to roll out a new sharia-compliant investment platform next year, aiming to broaden the traditional role of Islamic banks from credit provider to investment intermediary. The government is backing the Investment Account Platform (IAP) with an initial start-up fund of 150 million ringgit ($45 million), intending that the IAP will serve as a central marketplace to finance small and medium-sized businesses.
Global Islamic banking assets with commercial banks are on course to exceed $3.4 trillion (about Dh12.5 trillion) by 2018, fuelled by growing economic activity in core Islamic finance markets, according to the EY Global Islamic Banking Centre.
Several new players are rushing to cash in on this growing market. South Africa is the most recent entrant in the issuance of Islamic bonds or sukuk. American investment bank Goldman Sachs recently raised $500 million from its first Islamic bond sale. And the principality of Liechtenstein, banking on its well-established wealth management industry, is now looking at attracting Islamic financial business.
Malaysia is extending tax breaks on sukuk structures that are acceptable to Middle Eastern investors as it seeks to attract more money from the oil-rich region.
Issuers of Ijarah and Wakalah bonds will be excluded from sales taxes for a further three years to 2018, Prime Minister Najib Razak said in his Oct. 10 budget speech that didn’t include the renewal of the incentive for Tawarruq. The former securities are recognized by the Accounting and Auditing Organization for Islamic Financial Institutions, which sets industry standards that have been adopted in markets such as Bahrain, Qatar and the Dubai International Financial Centre.