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The price-naming game
The Bank of East Asia (BEA) planned to pay HK$1.86 billion (US$238 million) for a 25% stake in Affin Holdings’ shares. Analysts believed that this bid would give the Hong Kong bank greater access to Malaysia’s Islamic banking market.
OCBC’s big plans
OCBC Bank’s Islamic banking division tarseted double-digit growth in assets — up from RM3.2 billion (US$935.2 million) in 2006. The bank also planned to launch three new products this year to add to its existing 20, and electronic zakat contribution service.
Cruising on halal ground
AmInvestment Bank was mandated to arrange a RM1.75 billion (US$511.6 million) Sukuk Istisnah for special purpose vehicle Lebuhraya Kajang–Seremban (LEKAS).
New capital framework
Bank Negara Malaysia is currently its revised capital framework for insurers and banks. The revised framework was to take effect from January 2009.
Maybank attracts global investors
A total of US$2.4 billion was garnered for Maybank’s first overseas Shariah compliant bonds. This represented an oversubscription eight times of its original US$300 million offer for sale.
Crossing the Causeway
CIMB Bank opened a branch in Singapore, located at Singapore Land Tower. It was to cooperate with CIMB GK, the bank’s investment banking arm.
Shariah plantations
Kuala Lumpur Kepong (KLK)’s RM250 million (US$73.08 million) five-year Sukuk Ijarah Islamic medium-term notes program (IMTN) was oversubscribed to RM300 million (US$87.7 million).
Asia-Pacific Index hub
Dow Jones Indexes (DJI) was in talks with the Malaysian Securities Commission and Bursa Malaysia to establish an Islamic-based exchange-traded fund (ETF). The ETF, to be domiciled in Malaysia, would serve Asia-Pacific.
StanChart mulls Shariah subsidiary
Standard Chartered launched Saadiq, its Islamic global brand. The bank also said it was open to the establishment of an Islamic banking subsidiary by 2009.
Shariah takes to the skies
Al Salam Bank acquired a US$83 million equity stake in Malaysia Airlines’s Boeing 777-200ER aircraft. The transaction involved a combination of equity and debt.
Getting in on indices
Telekom Malaysia was keen to join the Dow Jones Islamic Index. The telecommunications provider proposed to issue up to RM3 billion (US$869.3 million) in Islamic stapled income securities to replace its current conventional securities.
Exceptional gain for Bank Islam
BIMB Holdings (BHB) reported an outstanding group performance for the six months ended 31st December 2006. Group pre-zakat and tax profit amounted to RM824.9 million (US$239 million) compared to a loss of RM12.8 million (US$3.7 million) in the previous half year. There was a gain of RM631.5 million (US$183 million) arising from dilution of its effective interest in its banking subsidiary from 100% to 51%.
Developers favor Murabahah
Magna Prima and Kuwait Finance House Malaysia signed a RM61 million (US$17.71 million) Murabahah facility. Of this sum, RM25 million (US$7.25 million) would be used to part-finance the acquisition of land from landowner TM Facilities.
Scotiabank open to options
The Bank of Nova Scotia (Scotiabank) was to study Islamic banking options, said Rasool Khan, country managing head for Malaysia.
Key to Islamic marts
Malaysia was to pave the way for the export of information and communications technology (ICT) from South Korea to Islamic countries and Southeast Asian markets.
South Korea’s confidence is boosted by Malaysia’s position as chairman of the Organization of the Islamic Conference (OIC).
JV for capital markets
AmInvestment Group entered preliminary talks with Saudi Arabian parties to set up a joint venture (JV) company. The JV would mobilize the group’s capital market activity in Saudi Arabia.
Reuters champions Islamic finance
Alex Hungate, managing director for Reuters Asia, believed increased interaction with regulators, issuers of Sukuk and buyers and brokers of the secondary market would create more opportunities.
Liquid water financing?
AmIslamic Bank planned to provide financing for the RM3 billion (US$868.8 million) Pahang-Selangor water transfer scheme.
StanChart means business
Standard Chartered Bank was set to launch its Standard Chartered Islamic Branding and First to Market Islamic Deposit 3-in-1 account.
Oil palm financing
Kuwait Finance House Malaysia signed a master agreement with Bank Negara Malaysia for its Commodity Murabahah Deposit-I, utilizing local commodities underlying transactions.
HSBC keeping fingers crossed
HSBC Malaysia applied to BNM to set up a fully fledged Islamic banking subsidiary. HSBC Malaysia’s Islamic banking assets amouned to 12%–13% of the bank’s total assets, and were set to reach BNM’s 20% target by 2010.
Malaysia would act as be HSBC’s prime hub for Islamic banking, while assisting growth in Indonesia, Brunei and Bangladesh.
Take note!
The Securities Commission (SC) was to issue its updated list of Shariah compliant securities every last Friday of May and November, with its first to be issued on 25th May 2007.
The change was in line with streamlining its issuance date with the FTSE– Bursa Malaysia (FBM) Emas Shariah Index review date.
TAKAFUL
MoU to boost Takaful
Maybank Group signed a memorandum of understanding with Panin Life to form a joint venture that would see the Malaysian bank acquire a 60% stake in Anugrah Life, a subsidiary of Panin Life.
Takaful with heart
Bank Islam Malaysia (BIMB) launched two Takaful-linked savings products for children. Dubbed Tunai Didik-I and Tunai Kasih-I, the products were expected to mobilize savings deposits of RM30 million (US$8.77 million) within their first year.
Attracting foreign money
MNRB Holdings, the owner of Malaysian Reinsurance (MalaysiaRe), Takaful Ikhlas and MNRB re-Takaful, anticipated a 20% rise in overseas operations income in the next three years. The group was raking in 12% in overseas contributions.
Certified and good to go
ISM Insurance Services Malaysia received the ISO/IEC 27001:2005 from SIRIM QAS International. This made ISM, a shared services provider for insurance and Takaful, the first Malaysian company to receive such certification for its entire operations.
The company spent a total of RM300,000 (US$87,478) throughout the 14-month certification process.
X-VISION ++ the answer?
India-based First Apex Software Technologies, along with Deloitte Consulting, was to provide business intelligence (BI) solutions to Malaysia’s Takaful Nasional. Dubbed X-VISION ++, First Apex’s BI solutions are insurance specific.
Increase in premiums
Takaful Ikhlas planned to roll out five new products before end-2007, including “Ikhlas Wanita Takaful” for working women and housewives, and two products for motorcyclists. The company also aimed to increase its premiums by 45% to RM320 million (US$93.55 million) by 31st March 2008.
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