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Saturday, 22 November 2014

Islamic finance & management events in Kuala Lumpur Malaysia



Date: 25-26 November 2014
Event: Executive Workshop on Islamic Wealth Management & Financial Planning
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Date: 17-18 March 2015
Event: KL Conference on Islamic Finance
Event site: www.islamic-finance-conference.net
Register

Date: 21-22 April 2015
Event: KL Conference on Islamic Wealth Management
Event site: www.islamic-wealth-management.net
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Date: 26-27 May 2015
Event: KL Conference on Shariah & Legal Aspects of Islamic Finance 2015
Event site: www.shariah-legal-islamic-finance.blogspot.com
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To register or reserve a seat online, please go to:

Organizer: Alfalah Consulting
www.alfalahconsulting.com

Mashreq sees sukuk pipeline starts spilling deals after market volatility

After sales of Islamic bonds began the fourth quarter at the slowest pace in six years, sukuk from companies including FlyDubai and Bahrain Mumtalakat Holding Co are among deals announced or sold this week. They will increase the amount raised this quarter to at least $5bn.

“These deals have been in the pipeline and the market volatility in September and October delayed them,” said Abdul Kadir Hussain, the chief executive officer of Mashreq Capital DIFC Ltd, who correctly predicted last week that sales would rebound. “The market seems supportive now and issuers are trying to get them out of the way.”

Bond volatility dropped 32% since reaching a more than one-year high on October 15, according to the Bank of America Merrill Lynch’s MOVE Index, which measures price swings in Treasuries based on options. There is demand for Islamic debt, especially for some of the new issuers, as they offer a higher yield than the more established ones, according to Apostolos Bantis, a credit analyst at Commerzbank AG in Dubai.

FlyDubai, the Dubai-based budget carrier, is selling as much as $500mn in sukuk. Bahrain’s sovereign wealth fund tapped the Islamic bond market for the first time on Tuesday, raising $600mn, while Drake & Scull International issued Shariah-compliant debt earlier this week.

FlyDubai, which is wholly owned by the Dubai government, is said to pay as much as 212.5 basis points above midswaps, the people said. That compares with about 165 basis points over the corresponding midswap that Emirates is paying on its sukuk maturing in March 2023. The airline is the world’s biggest by international passenger traffic.

Global sukuk yields have retreated 17 basis points since reaching a five-month high in October to 2.8% on November 18, according to a gauge compiled by Deutsche Bank AG.

The latest transactions won’t be enough to make for a record sukuk issuance year, Hussain at Mashreq Capital, which manages about $1.2bn, said by e-mail from Dubai on Tuesday. “Net new issuance will be flat to lower,” he said.

Sukuk sales have exceeded $40bn in 2014 compared with last year’s total of $43.1bn, according to data compiled by Bloomberg.

Turkey sold $1bn in 10-year Islamic bonds on Tuesday, the first sukuk offering since October 2013. Advanced Petrochemicals Co in Saudi Arabia said on Tuesday it sold a five-year floating-rate sukuk in a private placement, issuing 1bn riyals ($267mn). Drake & Scull, based in Dubai, also raised $120mn via a five-year sukuk in a private placement.

The issuer base is “widening,” Afaq Khan, chief executive officer of Standard Chartered Saadiq, said by phone on Tuesday. “It’s diversifying portfolios not only in terms of industries, but also geographies and in terms of risk reward so you can have Islamic Development Bank and FlyDubai in your portfolio.

(Gulf Times / 21 November 2014)
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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Malaysia: CIMB Islamic partners IRTI to produce Islamic finance country reports


KUALA LUMPUR: The Islamic Research & Training Institute (IRTI) of the Islamic Development Bank (IDB) Group and CIMB Islamic Bank Bhd has partnered to develop the Islamic Finance Country Reports (IFCR) on Malaysia and Indonesia. 

The IFCR is expected to provide in-depth information, and independent due diligence to facilitate the growth and development of the Islamic finance industry in IDB Group member countries and encourage investment by enhancing transparency.

Ini a statement on Friday, CIMB Islamic chief executive officer Badlisyah Abdul Ghani said that stakeholders within the industry need to be adequately equipped with necessary knowledge and better understanding to steer the business towards new directions within the Islamic finance industry.

He added that IFCRs will provide the industry with valuable knowledge resources towards enhancing the Islamic finance industry and cater to the growing number of customers in the real economy through well-structured, sustainable and innovative products and services.

Meanwhile, director general of IRTI Mohd Azmi Omar said that IFCR will analyze the success story of the Malaysian Islamic finance industry and provide the lessons learnt to other IDB member countries. 

Through this combined initiative, the two institutions aim to facilitate access to information that is currently not available to stakeholders and thereby ontribute to the growth and development of the Islamic finance industry. 

Apart from helping to increase investor confidence, the reports will facilitate better understanding mong regulators, market players, academicians, students and other stakeholders.



(The Star Online / 21 November 2014)
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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Friday, 21 November 2014

Malaysia: Great Eastern inks takaful deal with Bank Muamalat

KUALA LUMPUR: Great Eastern Takaful Bhd has signed an agreement to distribute bancatakaful products with Bank Muamalat Malaysia Bhd, enabling the former to tap into the latter’s customer base of 700,000.
Great Eastern chief operating officer Zafri Abdul Halim said the partnership is the best step to maximise both companies’ potential in providing holistic financial solutions to customers as it will allow Bank Muamalat to access Great Eastern’s range of products that will enhance the bank’s product offerings to its customers.
“Currently, three credit-related takaful products pertaining to housing loan, hire purchase and personal loan are available at Bank Muamalat. As for advisory, our investment-linked family takaful plan, i-Great Bakti, is offered through Bank Muamalat so far,” he said at the signing ceremony and the joint launch of its first family takaful plan, M-Tiara Hajj.
M-Tiara Hajj takaful plan provides assistance from as low as RM100 to prepare for customers’ Haj as well as a maximum of RM500 aid to certificate holders to help finance the cost of a Qurban during Hari Raya Aidiladha.
In the last financial year, bancatakaful from Bank Muamalat contributed about 10 per cent to Great Eastern’s takaful revenue.
“We expect to achieve substantial growth in terms of contribution with the launch of M-Tiara Hajj. With Bank Muamalat’s resources and commitment, we are confident that we are able to achieve this target,” Zafri said.
Bank Muamalat expects to see a take up rate of 3,000 from its base customers on the joint product.
“We received good feedback on the soft launch for the product three months ago even though the promotion campaign and exposure on the product is not wide enough,” said its head of consumer banking division Attar Salleh.
“The take up rate is expected to be achieved by the end of our year ending March 31 next year.” he added.
(New Straits Time Online / 19 November 2014)
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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Islamic finance body AAOIFI to revise four standards, eyes sukuk

The Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) will revise four of its standards in the first half of next year while expanding its guidance for Islamic bonds, the industry body said.
Earlier this month, AAOIFI issued two new standards and revised three others as it takes a more proactive approach under its new secretary general, Hamed Hassan Merah.
AAOIFI held its annual conference this week, after which it said it would seek either to revise or supplement its existing standard for sukuk, to provide the industry with more extensive guidance.
"We are...looking at the possibility of developing clearer guidance on sukuk that will incorporate accounting, legal, technical and tax-related aspects," Merah said in a statement.
Sukuk issuance is increasing worldwide but the structures used to create the instruments aren't uniform, which limits their cross-border acceptance by investors and trading in the secondary markets.

Year-to-date, sukuk issuance totals $110.9 billion through 665 deals globally, up from $97.3 billion through 703 deals a year earlier, according to Zawya, a Thomson Reuters company.
AAOIFI is also revising its accounting standards covering investment accounts, takaful (Islamic insurance), and ijara and murabaha financing structures.
A revised investment accounts standard is to be released by the end of 2014, important for Islamic banks which are seeking greater clarity on how to classify their deposits.
Consultations on takaful, ijara and murabaha will be conducted in the first half of 2015, AAOIFI said.
On takaful, AAOIFI is considering how to extend its guidance to retakaful, the issue of fixing agency fees rather than linking the fees to profits or performance, and clarifying the definition of benevolent loans (qard hassan), a conference document showed.
For ijara, a sale and lease-back contract, AAOIFI wants to clarify distinctions between operating and financing leases. Industry practice is currently not aligned with the ijara standard, known as FAS 8; proposed changes would cover income recognition, balance sheet classification, depreciation, amortisation and disclosures, according to a separate conference document.
AAOIFI's murabaha standard will be redesigned to stipulate the use of collateral for the recovery of receivables, while specifying accounting treatment and disclosure requirements, a third document showed.
The body is also engaging its counterpart in conventional finance, the London-based International Accounting Standards Board; AAOIFI invited IASB officials to its annual conference in Manama.

An IASB official said on the sidelines of the conference that his organisation would seek to develop non-binding guidance on the interpretation of their standards by Islamic financial firms, to help reduce uncertainty in the marketplace.
(Reuters / 19 November 2014)
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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

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