LANGUAGES

Entries in English and Malay (Bahasa Melayu)

Friday, 20 July 2012

Islamic Finance Goes Global

That landscape is changing. According to the World Wealth Report 2012, released by Capgemini and RBC Wealth Management, the Middle East was the only region where wealth increased among individuals of high net worth, who are often defined as those with $1 million in investable assets.
And while private bankers say that most of their clients are not trying yet to bank according to Shariah law, they say the market will evolve.
Islamic finance, which is becoming the more preferred mode of finance by many compared with conventional banking, is expected to be a global industry in three years, driven by its transparent and ethical business practices.
Dr Paul Temporal, an associate fellow at Said Business School at University of Oxford in the United Kingdom, said Islamic finance would continue to grow, especially when conventional banking continued to have issues around the world.
“Malaysia, in particular, is one of the world’s leaders in this area,” he told a press conference at the launch of a white paper entitled “The Next Billion, The Market Opportunity of the Muslim World”, which he co-wrote with Yusuf Hatia, Senior Vice President and Global Chair of Fleishman-Hillard Majlis.
Fleishman-Hillard Majlis is a newly-launched specialist offering by public relations company, Fleishman-Hillard International Communications, aimed to engage with the Muslim consumer market.
According to the report, the current global Muslim population estimated at 1.8 billion, would likely increase by 35 per cent to 2.2 billion in 2030, with 60 per cent residing in the Asia Pacific region and 20 per cent in the Middle East and North Africa.
Axiata Group Bhd. (6888.KU) Thursday said it plans to raise up to $1.5 billion by issuing multi-currency Islamic bonds to secure cheap long-term funds and improve capital efficiency.
Malaysia’s largest mobile telephone company by sales said in a statement to the stock exchange that it would be the first Asian telecommunications company to issue multiple currency Islamic bonds, or sukuk.
It didn’t specify which currencies, nor did it specify maturities or the number or size of tranches.
It called the issuance “strategic” as it would appeal to regional investors while also introducing the company to a diverse pool of investors across the Middle East and Europe, increasing its prospects for future fundraising.
Islamic financing differs from conventional financing in that it adheres to Shariah, or Islamic law, which prohibits the charging of interest and discourages speculation or benefiting at the expense of others.
Sukuks were first sold in 1990 by a Malaysian unit of Royal Dutch Shell PLC (RDSA.LN). They comply with Shariah by replacing coupons with payouts derived from tangible assets, such as leases or joint ventures.
Axiata plans to count air time vouchers–minutes on its mobile network–among its assets underlying the sukuk.
“Whilst Axiata has no immediate funding requirements, having the programme in place will enable the Group to remain nimble and able to move quickly in the event of any changes and demands of the marketplace,” Group Chief Financial Officer James Maclaurin said in the statement.
The sale will also support government efforts to position the Southeast Asian nation at the centre of global Islamic finance, President and Chief Executive Jamaludin Ibrahim said.
Malaysia accounted for 68.7% of the $84.4 billion worth of sukuk issued worldwide in 2011. Global sukuk issuance totaled $43.5 billion in January-March, 55% more than in the same period last year, and with Malaysia accounting for 71%.
Malaysia’s primary need for capital comes from large infrastructure projects, such as an urban rail transport project, under the government’s Economic Transformation Program. This initiative began in 2010 with the goal of turning the economy into a developed economy by 2020.
CIMB Bank Ltd., HSBC Amanah Malaysia Bhd. and Merrill Lynch (Singapore) Pte. Ltd. will be the joint lead arrangers for Axiata’s planned sukuk sale.

(Live Trading News / 19 July 2012)

---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant/Trainer/CEO: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Axiata Plans to Raise $1.5 Billion via Sukuk

Axiata Group Bhd. (6888.KU) Thursday said it plans to raise up to $1.5 billion by issuing multi-currency Islamic bonds to secure cheap long-term funds and improve capital efficiency.
Malaysia's largest mobile telephone company by sales said in a statement to the stock exchange that it would be the first Asian telecommunications company to issue multiple currency Islamic bonds, or sukuk.

It didn't specify which currencies, nor did it specify maturities or the number or size of tranches.

It called the issuance "strategic" as it would appeal to regional investors while also introducing the company to a diverse pool of investors across the Middle East and Europe, increasing its prospects for future fundraising.

Islamic financing differs from conventional financing in that it adheres to Shariah, or Islamic law, which prohibits the charging of interest and discourages speculation or benefiting at the expense of others.

Sukuks were first sold in 1990 by a Malaysian unit of Royal Dutch Shell PLC (RDSA.LN). They comply with Shariah by replacing coupons with payouts derived from tangible assets, such as leases or joint ventures.

Axiata plans to count air time vouchers--minutes on its mobile network--among its assets underlying the sukuk.

"Whilst Axiata has no immediate funding requirements, having the programme in place will enable the Group to remain nimble and able to move quickly in the event of any changes and demands of the marketplace," Group Chief Financial Officer James Maclaurin said in the statement.
The sale will also support government efforts to position the Southeast Asian nation at the centre of global Islamic finance, President and Chief Executive Jamaludin Ibrahim said.

Malaysia accounted for 68.7% of the $84.4 billion worth of sukuk issued worldwide in 2011. Global sukuk issuance totaled $43.5 billion in January-March, 55% more than in the same period last year, and with Malaysia accounting for 71%.

Malaysia's primary need for capital comes from large infrastructure projects, such as an urban rail transport project, under the government's Economic Transformation Program. This initiative began in 2010 with the goal of turning the economy into a developed economy by 2020.

CIMB Bank Ltd., HSBC Amanah Malaysia Bhd. and Merrill Lynch (Singapore) Pte. Ltd. will be the joint lead arrangers for Axiata's planned sukuk sale.

(Fox Business / 19 July 2012)

---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant/Trainer/CEO: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Islamic Development Bank (IDB) approved more than $1 billion for global development projects

The 284th meeting of the Board of Executive Directors of the Islamic Development Bank, which convened at IDB headquarters starting Sunday 16 July, under the chairmanship of Dr. Ahmad Mohamed Ali, President, IDB Group, approved more than $ 1,158 million towards development projects financing for IDB member countries and Muslim communities in non-member countries.
This is the largest amount of approvals by a single IDB board meeting since the Bank’s inception in 1975. The approvals covered a large number of strategically important development projects comprising:
$683 million for power generation and power transmission projects in five IDB Member Countries:  Morocco, Tunisia, Iran, Uzbekistan and Tajikistan;
$274.8 million for food security and rural development activities in African countries:  Cameroon, Chad, Uganda, Benin, Burkina Faso, Mali, Niger, Mauritania and Togo;
$146.2 million for educational projects in Indonesia, Yemen and Bangladesh;
$45 million to Indonesia Exim Bank for the financing of export-oriented small and medium size industries;
$7.6 million as additional financing for Durres fishing in Albania (bringing IDB contribution for that project to $16.8 million);
$400,000 technical assistance grant to Djibouti for the Mother to Child AIDS Transmission Prevention Project in the health sector.
In line with the Islamic Development Bank’s resolve to support development efforts in Muslim communities in non-member countries, the board also approved $1.1 million as grants from the Wakf fund for participation in four educational projects for Muslim communities in Ethiopia, India, Papua New Guinea and Germany and one health project in the Philippines.
During its meeting, the board reviewed a number of important reports including the progress report on the implementation of IDB’s program for supporting Youth Employment in Arab Countries for which the Bank had already allocated $250 million and another report on the latest developments on the establishment of the ‘Mega Bank’, aiming at liquidity management for Islamic banks, and for which a tripartite Memorandum of understanding was signed earlier between the Government of Qatar, the IDB and the Dallah Al Baraka Group.
(Albawaba / 19 June 2012)
---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant/Trainer/CEO: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Latest Posts

Upcoming Events on Islamic Finance, Wealth Management, Business, Management, Motivational

Alfalah Consulting's facebook

NOTICE

Alfalah Consulting is NOT providing any kind of loan to finance project etc and asking for a fee. If you've received any email claiming to be from Alfalah Consulting, offering loan to you, please ignore it or inform us for further actions. Our official email is info@alfalahconsulting.com. If you've received an email from afalah.consulting@gmail.com, that's NOT from us. Be cautious!