|
Johor port Sukuk: Tanjung Langsat Port, a unit of Johor Corporation, planned to issue up to RM250 million (US$78 million) worth of Musharakah and RM135 million (US$42 million) Musharakah commercial papers/medium-term notes to refinance its loans and expansion purposes. The issuances were to be underwritten by MIDF Amanah Investment Bank, Bank Rakyat and Bank Islam.
Malaysia calls for US to invest Islamic: Malaysia’s minister of international trade and industry, Muhyiddin Yassin, urged US bankers to work with their Malaysian counterparts in penetrating the Islamic financial services sector. He said that demand for Shariah compliant financial and investment products was on the rise, even in non-Muslim nations.
TAIEX plans Islamic fund: Taiwan’s stock exchange (TAIEX) was interested in launching an Islamic exchange-traded fund (ETF), said chairman Wu Rong-I. He said stocks were being compiled for the fund, and that this was expected to be completed within the second half. TAIEX entered into an initial deal last December to list the Islamic ETF in Abu Dhabi and Taiwan.
Maybank targets 120 new firms: Maybank’s executive director and CFO, Aminuddin Md Desa, projected that up to 120 firms would sign up for its new online zakat payment service, Maybank2e.net, within the next year.
Aminuddin said that the first Islamic web-based cash management financial portal in Malaysia had executed 21 million transactions worth RM515 million (US$158.11 million), and was already being used by 8,500 companies.
Microlink upgrades: Microlink Solutions planned to spend up to RM3 million (US$951,811) on upgrading software that would enhance flexibility to develop more service-oriented products for Islamic investment banks. Director Peter Yong said the company hoped to roll out the program in 2009.
The company was keen to penetrate the Middle Eastern and Indonesian markets as it believed more Islamic banking facilities would spring up in these two markets.
AirAsia to issue bank-guaranteed Sukuk: Malaysian budget airline AirAsia’s proposed RM500 million (US$158 million) Sukuk was approved by local regulators. The proceeds would be used to part finance capital expenditure.
AFB chief quits, heads for Middle East: Asian Finance Bank (AFB) CEO Faisal Alshowaikh left the bank at the end of June 2008 to take up another post in the Middle East. His resignation marked another high-profile move in the industry.
New venture capital guidelines: Securities Commission Malaysia announced new guidelines for the Islamic venture capital sector to attract more investments in Shariah compliant firms. Managing director Nik Ramlah Nik Mahmood said two main components under the guidelines were that investees must appoint Shariah advisers and the core business must be Islamic.
Toyota to issue Sukuk in Malaysia: Sources revealed Toyota Motors’ planed to issue up to RM1 billion (US$307 million) worth of Sukuk in Malaysia, with the proceeds used in its automobile leasing and loan operations.
The issuance, which would include a commercial paper and medium-term notes program, would have one- and seven-year maturity dates respectively.
Maybank to buy 15% MCB stake: Malayan Banking (Maybank) was preparing to buy a 15% stake in Pakistan’s MCB Bank for RM2.17 billion (US$689.43 million). It was to buy another 5% in the Islamic bank at a later date, which would make Maybank its major shareholder.
For the acquisition, the Malaysian bank signed five share purchase agreements with five individuals and with Muslim Commercial Bank Employees’ Pension Fund, the Muslim Commercial Bank Provident Fund, Nishat Mills Employees Provident Fund Trust and Adamjee Insurance Company.
CIMB allots US$305 million: CIMB Islamic Bank allocated RM1 billion (US$305 million) in financing facilities, which was the same amount as 2007, for its corporate clients, said CEO Badlisyah Abdul Ghani. More attention would be given to those who participated directly in the halal sector, he added.
PLUS’ MTN plan: Projek Lebuhraya Utara-Selatan (PLUS), revealed plans to issue RM700 million (US$218 million) in nominal value Islamic Medium-Term Notes (MTNs) to refinance a tranche of its Senior Sukuk.
Sukuk III, which held a value of approximately RM300 million (US$93.5 million) and a tenure of 14 years, was assigned an “AAA” rating by Rating Agency Malaysia. CIMB Investment Bank acted as the sole lead arranger and bookrunner for the Islamic papers.
Dubai Islamic plans halal investment firm: Dubai Islamic Investment Group, which is part of Dubai Group, was to set up a firm together with Malaysia’s Tabung Haji and Halal Industry Development Corporation to look into halal-based investment opportunities.
The new firm, expected to start operations at the end of 2008, was to invest in agriculture, food processing, restaurants, grocery firms and hypermarkets that are Shariah compliant.
OCBC does personal financing: OCBC Bank launched an Islamic personal loan program which allows individuals to apply for a minimum of RM6,000 (US$1,831) of loans and up to RM100,000 (US$30,529) without any guarantor or collateral. The program is called “Next Day Cash”, and is targeted at those with at least RM2,000 (US$610.59) monthly income.
Global halal standard under way: Malaysia was working toward building a common halal standard among all members of the Organization of the Islamic Conference (OIC), which aimed to promote the growth of the halal industry worldwide, and would pave the way for the country to be recognized as the global halal hub, said Nordin Abdullah, executive director of consulting company KasehDia.
Malaysia’s standards have been used by some OIC members as a benchmark and were developed and regulated by the country’s department of Islamic development (Jakim).
Incentives to attract halal biz:Prime minister Abdullah Ahmad Badawi announced government incentives to attract businesses in the Malaysian halal industry. Abdullah said these included tax allowances for investment, benefits for exporting halal products and exemption from duties for importing raw materials.
LOFSA annual report out: The Shariah compliant assets of Labuan International Business and Financial Center (Labuan IBFC) increased by 36.9% to US$1.2 billion in 2007, according to the 2007 annual report released by Labuan Offshore Financial Services Authority (LOFSA).
Among the factors attributed for the increase were the interest shown by Middle Eastern investors in the region, and efforts from Malaysia, namely the Malaysia International Islamic Financial Center, to promote Shariah compliant funds and trusts.
TAKAFUL
CIMB-Aviva predicts 40% annual growth: CIMB-Aviva projected a total of 40% annual growth from its life and Islamic insurance products until 2010. Marketing director Andi McLennan said this was achievable by focusing on its bancassurance channel with CIMB Bank.
The target was double the 20% annual growth it set for the company’s Asia-Pacific businesses. It grew by 60% in 2007, and currently made up about 10% of Aviva’s businesses, said Aviva CEO Andrew Moss.
Maybank plans global Takaful:
Maybank and Islamic Development Bank planned to set up a global Takaful business together by the end of 2008, said the Malaysian bank. A pact was signed between Maybank and the Islamic Corporation for the Development of the Private Sector (ICD) to study the feasibility of setting up the holding company.
Takaful Malaysia seeking US$31 million: Takaful Malaysia was looking into raising RM100 million (US$31.73 million) from its investment-linked product, my AL-AFDHAL, following the end of the subscription period on the 15th June.
Touch ’n Go now with insurance: Touch ’n Go and Etiqa began offering a free insurance package with every purchase of Touch ’n Go cards. It is valid for one year, and motorists would get RM10,000 (US$3,117) personal accident insurance and up to RM2,000 (US$623.40) reimbursement for hospitalization.Touch ’n Go COO Hasni Zarina Mohamed Khan said that with the offer, the company hoped to sell up to 10,000 cards each week.
Tune Money’s Motor Plan: Online financial service provider, Tune Money, launched its Islamic motor protection plan, enabling motorists to purchase and renew their insurance on the net.
The product is unbundled, thus allowing more transparency for customers to pick coverage suited to them.
CIMB Aviva Takaful was selected as the scheme’s underwriter.
AXA pulls out from race: AXA Asia Pacific Holdings withdrew from the race to acquire a stake of up to 49% in MAA Holdings’ insurance arm, Malaysian Assurance Alliance.
The company however reiterated its commitment through its joint venture with Affin Holdings, AXA Affin. Kurnia Asia and Nippon Life Insurance also pulled out from discussions to acquire a stake in MAA.
HSBC Amanah keen to double premiums: The Takaful division of HSBC Bank Malaysia planned to double its new business premiums from RM185 million (US$56.61 million) in 2007, to RM350 million (US$107 million) in 2008.
Mohammed Muqeem, HSBC Amanah Takaful’s acting deputy CEO, said the insurance firm had introduced a range of attractive new products, such as the recently launched LifeSelect Single, that would help the company achieve its target.
The product was targeted to reach RM100 million (US$30.6 million) in premiums from LifeSelect Single by the end of 2008.
|
