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TATA for Maybank?
India’s TATA Consultancy (TCS) was in talks with Maybank to offer its Islamic banking services.
Cagamas launches debt papers
Cagamas launched its US$17.29 billion conventional and Islamic commercial papers and medium-term notes program the largest issuance in Southeast Asia.
The program comprised US$5.76 billion in commercial papers and US$11.52 billion in medium-term notes, with a 40-year tenure.
Invest in Sarajevo
Amer Bukvic, director of Bosna Bank International, urged Malaysian banks to invest in Bosnia and Herzegovina, and to expand Malaysia’s Islamic banking business into the region to beat competition from European houses.
Equity funds overshadowed
Baljeet Kaur Grewal, chief economist and director at Kuwait Finance House Malaysia (KFHM), predicted the massive issuance of Sukuk would erode the dominance of equity funds in the Islamic fund sector. Baljeet also expected a doubling in US dollar-denominated Sukuk from US$25 billion to US$50 billion this year.
Khazanah over-booked
Khazanah Nasional received US$250 million more than expected from its US$600 million exchangeable Sukuk. Closing at US$850 million, the Sukuk — exchangeable for ordinary shares of PLUS Expressway — was oversubscribed by 13 times.
HSBC sold out
Fresh from its 19th June launch, HSBC Amanah’s Islamic Equity Linked Structured Investment-I was all taken up at US$4.92 million. The bank launched a second tranche to satisfy customer demand.
Don’t just bank on Shariah
According to a recently published article in a Thai daily, Malaysia cannot just bank on its halal projects. Some analysts said that the recent boom in Islamic finance and Malaysia’s drive to be at its forefront would not sustain the Malaysian economy.
Crossing the South China Sea
The governor of Bank Negara Malaysia stressed the need for greater financial integration among Southeast Asian markets at the recent Malaysia–Indonesia Investment and Finance Summit.
EIIB–CIMB collaboration
CIMB Group signed a commodity Murabahah program (CMP) and foreign exchange forward agreement with the UK-based European Islamic Investment Bank.
Sound prospects
Baljeet Kaur Grewal of KFHM was confident the Malaysian economy would be sustainable throughout 2007, was underpinned by sound overall fundamentals, high Asian exports and investments.
Bhari’s Islamic solutions boost
Bhari Information Technology Systems (Bitech)’s Islamic banking solutions were set to rake in US$57.9 million in annual turnover from the Malaysian market alone, via I-Mal.
Oversubscribed fivefold
SilTerra Capital’s seven-year US$524.87 million Sukuk Ijarah was oversubscribed by five times.
Top 10 in the world
Eurekahedge placed Alliance Investment Management (AIM)’s Malaysian Islamic funds — Alliance Dana Adib (ADA) and Alliance Islamic Money Market (AIMM) — among its top 10 Islamic funds.
Allco goes Islamic?
Allco Finance of Australia was to form a structured finance partnership with CIMB Group to provide onshore financing options for Malaysian companies. The partnership targeted large assets such as airplanes and ships.
Islamic micro-financing
Professor Bala Shanmugam of Monash University Malaysia called for Islamic financial institutions (IFIs) to step up for the poor. He expressed his belief that IFIs should extend small loans or micro-financing to the needy to create equal entrepreneurial opportunities.
CIMB targets more overseas Sukuk
CIMB Group wants to complete more overseas Sukuk deals. Group CEO Nazir Razak said: “The target this year is to do more Sukuk deals that have nothing to do with Malaysia, like our bond deals for the Islamic Development Bank.”
Delay affects debt
Encorp’s delay in deciding on variable costs for the construction of 10,000 units of teachers’ quarters threatened its debt servicing ability. Encorp had previously issued four tranches of US$794.03 million in Bai Bithaman Ajil notes.
TAKAFUL
Takaful global giants
In line with CIMB and Aviva’s recent tie-up, the companies launched their first joint venture (JV) product, the Takaful Global Giants. The investment-linked product would provide full capital protection if held to its five-year maturity, along with returns linked to the performance of 20 Shariah compliant global blue chips, including Nestlé, Microsoft, Nike, Colgate-Palmolive, Procter & Gamble, Wal-Mart and Pepsi.
Commerce Takaful projected a leap in total gross contributions to over US$143.63 million this year from the recently launched product.
Importance of Takaful
Solidarity and Labuan Re held a one-day Takaful workshop that focused on Takaful and its influence on the industry. Solidarity financial experts shared their insights into the concept of Takaful, Takaful models, products and services and the factors affecting the growth of this Islamic system of insurance and assurance. Factors leading to the industry’s development were also discussed.
Two-in-one from Hong Leong
Hong Leong Tokio Marine Takaful launched HLTMT
i-Invest. The single contribution, investment-linked family Takaful scheme aimed to provide investment and protection returns, and served as an alternative investment solution for clients seeking diversification in medium-term investments, with added Takaful protection.
Viva Aviva!
Aviva UK was to form a JV with the CIMB Group, having received approval from Bank Negara Malaysia. The JV would see Aviva acquire up to US$145.52 million, or 49% in equity, in two of CIMB’s subsidiaries, Commerce Life Assurance and Commerce Takaful.
MAA Takaful to begin operations
MAA Takaful was to commence operations on 1st July. The company would start off by offering general Takaful products, followed by family Takaful on 1st August.
No sleeping partner for Takaful Ikhlas
Takaful Ikhlas was set to form strategic partnerships with both local and foreign Islamic financial institutions, and had already been approached by several.
Best practices framework
With effect from 1st July 2007, Malaysia’s general insurance and Takaful industry were to simultaneously adopt the Best Practices Framework (BPF). It was hoped that the framework would create a more dynamic and progressive industry.
The new framework required brokers, insurers and Takaful operators to standardize and streamline business procedures.
Manulife’s Takaful makeover
Manulife Insurance expected strong sales in 2007 on the back of a 40% growth in new business premiums in 1Q.
Established environment
Malaysia’s Takaful environment appeared to be better regulated than that of the GCC. Standard & Poor’s (S&P) recently published a report on the Malaysian Takaful market and was optimistic about the Malaysian market, if the country could to reach the optimum level set out in Bank Negara Malaysia’s financial sector masterplan.
MNRB on track
MNRB Holdings has chartered its highest profits yet. Up 12%, the company’s first quarter profits stood at US$38.07 million, up from US$33.86 million in the corresponding period of last year. MNRB’s revenue also grew by 11% to US$245.65 million. |
