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Ingress not in default, says CEO: Ingress Corporation, whose RM160 million (US$51 million) Sukuk Ijarah was placed under rating watch by Malaysian Rating Corporation (MARC) in April, reiterated that it had not defaulted on the bond. Ingress executive vice chairman and group CEO Rameli Musa said the auto parts maker was preparing a financial proposal to address the issues of a possible default, as claimed by Sukuk trustee CIMB Trustee.
BNM: Mechanism is Shariah compliant: Bank Negara Malaysia confirmed that the recently established rounding mechanism to the nearest five sen for all payments made over the counter was Shariah compliant. Its Shariah Advisory Council’s decision was based on three reasons: the move was in the public interest, the difference between actual and rounded amounts of payment was insignificant, and no harm was apparent to any party involved.
Tabung Haji links up with banks: Bank Islam and Bank Rakyat extended ATM and cash deposit services to Lembaga Tabung Haji depositors looking to perform banking transactions.
Possible tie-up talks have begun: It was reported that three government-linked companies based in Abu Dhabi had begun talks with the Employees Provident Fund (EPF) to buy an equity stake in the Malaysia Building Society (MBS). EPF held a 52.9% equity in MBS.
ICM and Sukuk play vital role: The growth of the Malaysian Islamic capital market, specifically the Sukuk market, was one of the reasons for the increase of capital markets as a whole in the country, said Zarinah Anwar, chairman of Securities Commission Malaysia (SC). The Malaysian capital market grew by a staggering 29%, amounting to RM875 billion (US$274.47 billion), in 2007.
Securitization can still grow: The interest shown by GCC countries can increase the growth of Islamic securities in Malaysia, stated international audit and advisory firm Deloitte Touche Tohmatsu. Ng Meng Kwai, a partner at Deloitte, noted that the country’s position as the largest Sukuk issuer in the world made it attractive for investors.
KL Sentral Sukuk fully redeemed: The RM720 million (US$228 million) Sukuk Musharakah issued in 2007 by Malaysian Resources Corporation (MRC) subsidiary, Kuala Lumpur Sentral, was fully redeemed due to overwhelming response to KL Sentral’s development.
An Islamic bank for Alliance: Alliance Financial Group became the latest bank to jump on the Islamic finance bandwagon with the incorporation of Alliance Islamic Bank to tap the huge potential of Islamic banking. Yahya Ibrahim was promoted from head of Islamic finance to CEO of Alliance Islamic.
Pacific Mutual signs up with 3i Infotech: Pacific Mutual Fund signed a contract with Malaysia-based 3i Infotech to provide IT-related solutions for Mfund, Pacific Mutual’s software solution for unit trusts.
Easier way to perform Umrah: AmIslamic Bank hoped to sign up 50,000 new members by the end of 2008 for its Islamic credit card, Al-Taslif, through a partnership with Syarikat Rahman Brothers Travel & Tours (SRBTT). Under an agreement, Al-Taslif card holders would be able to perform Umrah through SRBTT and enjoy a 0% easy payment plan.
Microlink and TWC to work together: Microlink Worldwide and Kuwaiti-based Technology World Company (TWC) inked a joint-venture agreement to create a Kuwait-based Islamic banking systems provider, Microlink MENA. The JV would see Microlink provide financial products while TWC would facilitate access to banks and financial institutions’ customers.
Stratavest pulls the plug on Sukuk issue: Stratevest aborted its RM120 million (US$37 million) Sukuk Ijarah program. The company, however, did not give a reason for abandoning the Sukuk in its statement to Bursa Malaysia.
Proceeds from the papers were intended for capital investments and working capital; and to finance the company’s outstanding Bai Bithaman Ajil (BBA) serial bonds issued for a power plant project by Stratavest and Musteq Hydro, both subsidiaries of Eden.
Consolidation of AmInvestment funds: In a bid to enhance competitiveness under the universal banking platform, AmInvestment Bank transferred its fund-based activities to AmBank and AmIslamic Bank respectively.
The move, which took effect on the 12th April, would enable the bank to maintain market leadership and enlarge its existing balance sheet.
Public Mutual to launch equity fund: Public Mutual launched an Islamic equity fund, the Public Islamic Optimal Growth Fund (PIOGF), which was open to the country’s Employees Provident Fund investment scheme members.
OSK’s Islamic unit begins trading: OSK Investment Bank, a subsidiary of OSK Holdings, officially commenced its Islamic banking business.
CIMA launches Islamic certificate: The Chartered Institute of Management Accountants (CIMA) launched its certification in Islamic finance. The certificate, a four-module, self-study qualification in the student’s own time for up to six months, was jointly developed with the International Institute of Islamic Finance (IIIF).
Affin eyes China expansion: Affin Islamic Bank expressed its intention to penetrate China’s Islamic banking market following its alliance with Hong Kong’s Bank of East Asia.
Lodin Wok Kamaruddin, managing director of the bank’s parent company, Affin Holdings, said the group was looking into options to enter the market. The group was also planning a regional expansion via Affin Bank.
It was still weighing its options in Southeast Asia, namely Vietnam, Thailand and Indonesia, although no timeframe had been set.
Affin Islamic supports small firms: Affin Islamic Bank launched a financial plan aimed to raise funds for small companies, by becoming the company’s partner and not just a lender. The plan could also be used to add to the local banking assets.
Affin was working on a pioneer project with Mutiara Goodyear Development to develop an apartment project in Penang worth US$56.3 million. Both parties would equally buy the land, develop the property and share profits as well as losses.
Bank Rakyat inks deal with Cagamas: Bank Rakyat signed an agreement with Cagamas, naming the bank as the first institution to participate in the sale or transfer of new asset classes to Cagamas. Via the agreement, Cagamas would be able to provide new innovative Islamic products to the banks.
AMMB plans Islamic projects: Bank Negara Malaysia issued its approval for AMMB Holdings’ Islamic stockbroking unit, affirmed AMMB’s director of group corporate services, Amerjeet Kaur.
AMMB believed that with a booming global Islamic capital market, there would soon be a demand for separate Shariah compliant stockbroking. The strockbroking unit was due to launch in July.
TAKAFUL
Third reTakaful operator approved: Khazanah Nasional gained in-principle approval to set up an Islamic reinsurance unit with Dubai Islamic Investment and Singapore’s Asia Capital Reinsurance Group (ACR), said sources familiar with the development.
The company, ACR ReTakaful, would be set up with a capital of US$100 million. It would be the third Malaysian reTakaful operator after MNRB Retakaful and Munich Re.
Khazanah and the Dubai Group would each hold a 40% stake in
the company, with the balance
held by ACR.
Takaful Ikhlas revenue exceeds target: For the year ended the 31st March 2008, Takaful Ikhlas reported total revenue of RM430 million (US$137 million), surpassing the initial forecast of RM320 million (US$102 million). Chairman Sharkawi Alis targeted RM520 million (US$165 million) for the coming year.
Mayban Fortis to buy 60% of Anugrah: Mayban Fortis Holdings revealed plans to formally acquire Indonesia’s Anugrah Life Insurance. Mayban Fortis is the Takaful and insurance arm of Maybank, while Anugrah is a subsidiary of Panin Life TBK. Maybank and Panin had earlier signed a memorandum of understanding to commence talks on a possible joint venture via the acquisition of a 60% stake in Anugrah.
Panin and Mayban Fortis were preparing the submissions to the relevant Indonesian authorities for approval of the acquisition, following approval from Bank Negara Malaysia in late March.
MNRB keen to acquire BIIH stake: MNRB Holdings expressed intentions to acquire up to 71.67 million shares from British Islamic Insurance Holdings (BIIH), which worked out to about 9.99% of the total shares. At GBP0.125 (US$0.247) per unit, the total amount of the acquisition would come up to GBP8.96 million (US$17.72 million).
BIIH planned to go for a dual listing strategy to sell the shares. The main market was on the Alternative Investment Market of the London Stock Exchange, and the other listing on one or several stock exchanges based in the Gulf Cooperation Council region. The expected date of completion was the 30th June.
Munich Re to make Malaysia global hub: German-based Munich Re was eager to penetrate the reTakaful market in Islamic countries in the Middle East and Asia.
The world’s second-largest insurance company hoped to dominate up to 20% of the global reinsurance market, thus choosing Kuala Lumpur as the sector’s main hub, said director Ludger Arnoldussen.
Takaful Malaysia gives 10% dividend: Syarikat Takaful Malaysia agreed on a 10% dividend for its Takaful customers. The Mudarabah payment was to be made to holders whose certificates expired between the 1st March and the 31st December last year.
Eligibility, however, was contingent on whether customers had made claims against the certificates, and if payments had been made in full for that year.
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