Muis to distribute US$500,000 to Singapore madrasahs

The Islamic Religious Council of Singapore (Muis) will disburse S$500,000 to the six full-time madrasahs* in Singapore due to COVID-19. This one-off disbursement, in view of the challenges faced by the madrasah sector during the ongoing pandemic, will go towards supporting the madrasahs' student programmes. About 3,500** madrasah students will benefit from this support.

Madrasahs rely heavily on the support of the community. They are supported through school fees and grants from various sources such as the Mosque Building and Mendaki Fund (MBMF), Baitulmal, zakat, Dana Madrasah, Wakaf Ilmu and government funding***. These mostly go towards madrasahs' manpower and training expenses. Madrasahs regularly undertake fundraising to supplement the shortfall for the school operational and student programme needs.

Due to the COVID-19 pandemic, madrasahs have had to suspend or cancel several fundraising events. It was also more difficult for donors to come physically to the madrasahs to donate. This has resulted in a substantial shortfall in revenue from typical fundraising sources and donation drives, such as collection during Friday congregational prayers. In addition, the implementation of safe management measures at the madrasahs has increased their operational costs.

In view of this, Muis had earlier worked with the madrasahs to develop and launch the OurMadrasah.sg portal on 4 December 2020. The community public education and fundraising portal aims to expand outreach and update the public about Singapore's madrasahs through videos, articles and writeups. The platform also serves to provide a seamless payment gateway which will be easier for the community to make one-off or recurring donations via credit or debit card, eNETS, PayNow and GIRO.

Over the last few weeks, about S$50,000 has already been raised online. Muis said. Donors can choose the madrasah they wish to donate to, or request that the money is distributed across all madrasahs.

Esa Masood, Chief Executive of Muis, said: "As key institutions for the Muslim community in Singapore, our madrasah leaders,teachers and students have adapted well to the challenging situation over the past year and have continued to perform well. This disbursement signifies Muis' continued support for our madrasahs. We urge the community to rally together and continue to stand in solidarity with our madrasahs so that they can continue the important work to nurture the next generation of asatizah to guide our community."

Asatizah refer to religious teachers.

Details:

Support madrasahs in the 2021 academic year

*The six full-time madrasahs are Madrasah Aljunied Al-Islamiah, Madrasah Alsagoff Al-Arabiah, Madrasah Al Arabiah Al-Islamiah, Madrasah Irsyad Zuhri Al-Islamiah, Madrasah Al-Ma’arif Al-Islamiah and Madrasah Wak Tanjong Al-Islamiah.

**Data from madrasah returns in June 2020.

***This specifically covers Edusave and teacher development for secular subjects (See the Singapore Prime Minister’s speeches at the 2013 and 2015 National Day Rallies respectively).

Islamic Development Bank announces economic empowerment initiatives for July 2018

The Islamic Development Bank’s (IsDB) has established the Economic Empowerment Fund for the Palestinian People with a founding capital of US$500 million. US$100 million of the fund comes from the IsDB with other contributions from waqf (Islamic endowment) contributions and other investment and financing instruments.

The Board also approved US$57.1 million for financing development projects in member countries and approved in principle the establishment of the Waqf International Centre of Excellence in Madinah, KSA.

The promotion of science, technology and innovation as a catalyst for economic growth is an important priority for the IsDB as was evident by the launch of the Transform fund in March 2018. As part of this initiative the Board has approved a technical assistance grant amounting to US$1.5 million for a Regional Community Development Programme for Rural Women Engineers. This will be implemented in remote villages in nine member countries including Afghanistan, Syria, Jordan, and Indonesia, by employing a proven model for self-sustaining community development.

The technical assistance will:

- Support 44 illiterate and semi-literate Women Barefoot Solar Engineers as entrepreneurs in their own right, and enable them to train and develop the skills of other women

- Bring solar electricity to 2,250 households via the trained women

- Install clean sustainable light to 14,625 people across the nine countries

- Develop viable business models and go-to-market approaches for a number of decided livelihood activities customised to tap relevant local and/or international market opportunities.

Special Assistance grants to Muslim communities in non-member countries amounted to US$1.6 million were also approved by the Board, including:

- Construction of the OZEF Special Education Center, Nicosia, Turkish Republic of Northern Cyprus (US$200,000).

- Construction of New School Building for Suffah Ideal Academy in Birgung Village, Nepal (US$200,000).

Sharjah Islamic Bank, DAMAC Properties list new sukuk with Nasdaq Dubai

Source: Nasdaq Dubai. Adil Taqi, Group Chief Financial Officer of DAMAC Properties, has rung the market opening bell to celebrate the listing of a US$400 million sukuk issued by DAMAC Real Estate Development on Nasdaq Dubai. The company is a wholly owned subsidiary of DAMAC Properties.

Nasdaq Dubai has welcomed the listing of two sukuk by UAE issuers. Sharjah Islamic Bank (SIB) listed a US$500 million sukuk, and DAMAC Properties, a major real estate developer in the region, listed a US$400 million instrument.

DAMAC Properties delivers residential, commercial and leisure properties across the region, including the UAE, KSA, Qatar, Jordan, Lebanon and Oman as well as the UK. The listing on the region’s international exchange supports DAMAC Properties’ capital raising programme for general corporate purposes and its ongoing growth strategy, as it continues to extend its footprint in the Middle East and beyond with projects.

The listing on the region’s international exchange supports DAMAC Properties’ capital raising programme for general corporate purposes and its ongoing growth strategy. The sukuk was sold to investors in the Middle East, Europe and Asia. It is the third sukuk listed by Dubai-based DAMAC Properties on Nasdaq Dubai, following a US$650 million sukuk listed by the company in April 2014 and a US$500 million issuance in April 2017.

Hussain Sajwani, Chairman of DAMAC Properties, said: “DAMAC continues to expand its development portfolio at home and internationally, as we seek out strategic investments that would enable us to expand our footprint into key global markets. The sukuk enables us to raise capital cost effectively and our listing on Nasdaq Dubai gives our sukuk high visibility around the world together with an excellent regulatory framework.”

Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said: “This issuance and listing by one of the region’s leading real estate developers underlines the leading role played by Dubai as an international centre of sukuk expertise and activity, made possible by the depth and breadth of Islamic finance professionals based in the Emirate. Sukuk are an important pillar of the initiative positioning Dubai to be the global capital of the Islamic economy launched by HH Sheikh Mohammed Bin Rashid Al Maktoum, the VP and PM of the UAE and Ruler of Dubai.”

Two other sukuk issued by SIB are currently admitted to trading on Nasdaq Dubai. Both are US$500 million issuances that listed in 2015 and 2016. DAMAC Properties’ other sukuk listed on Nasdaq Dubai comprise issuances of US$650 million and US$500 million in 2014 and 2017 respectively.

SIB supplies a broad range of sharia'ah-compliant retail, corporate and investment services through its networks across the country, including asset management and international banking, serving individual and institutional clients.

The latest listings by SIB and DAMAC Properties bring the total value of all sukuk listed in Dubai to US$59.22 billion, strengthening the Emirate’s role as the leading global centre for sukuk listings by value.

Hamed Ali, Chief Executive of Nasdaq Dubai, said: “As the sukuk market expands globally by attracting a growing range of issuers and investors from diverse backgrounds, we will further enhance our services on their behalf including before listing and post-listing activities. Nasdaq Dubai will continue to develop its Islamic finance asset classes, with sukuk at the forefront of our growth and innovation as we expand our role as the region’s international exchange.”

Bahrain issues US$1 billion seven-year sukuk tranche

On 28 March 2018, Bahrain successfully priced an international US$1 billion sukuk offering. 

The financing exercise forms part of the kingdom’s prudent approach in managing its funding requirements. The transaction received strong global investor interest, with the order book peaking at around US$2.1 billion (2.1x of the total amount raised) from more than 100 investors.

Based on investor feedback, Bahrain elected to pursue the optimal cost-efficient debt capital markets format, issuing a single tranche sukuk offering with a yield of 6.875% that matures October 2025. The offering attracted a globally diversified order book from both Islamic and conventional investors, with 59% of the notes distributed in MENA, 16% in Europe, 14% in UK, 9% in the US and 2% into Asia. Distribution by investor type comprised 63% of banks/private banks, 33% of fund managers, 3% of pensions and insurance, and 1% classed as "others".

“Bahrain has fostered a long-term relationship with debt capital markets investors, and we are pleased to see strong appetite to the transaction despite the volatile market conditions,” said Salman Al-Khalifa, Executive Director of Banking Operations at the Central Bank of Bahrain.

The kingdom is expected to raise funds through other sources of financing, including local debt capital markets and potentially could seek to come back to the international debt capital markets at a later stage in 2018.

Bahrain's Al-Salam and Al-Ijara sukuk both 100% subscribed

The Central Bank of Bahrain (CBB) has announced that the monthly issue of the Sukuk Al-Salam Islamic securities has been fully subscribed. Subscriptions worth BD43 million were received for the BD43 million issue, which carries a maturity of 91 days.

The expected return on the issue, which begins on 21 March 2018 and matures on 20 June 2018, is 3.17% compared to 3.13% for the previous month's issue on 21 February 2018.

The monthly issue of the short-term Islamic leasing bonds Sukuk Al-Ijara, have also seen 100% subscription, CBB said. Subscriptions worth BD26 million were received for the BD26 million issue, which carries a maturity of 182 days.

The expected return on the issue, which begins on 15 March 2018 and matures on 13 September 2018, is 3.39% compared to 3.27% for the previous issue on 8 February 2018.

Sukuk Al-Salam and Sukuk Al-Ijara are issued by the CBB on behalf of the government of Bahrain. 

Bank of Tokyo-Mitsubishi UFJ Malaysia gets AAA(bg)/Stable rating on sukuk wakalah

RAM Ratings has reaffirmed the AAA(bg)/Stable rating of the securities issued under Bank of Tokyo-Mitsubishi UFJ Malaysia (BTMU Malaysia) for a US$500 million Multi-Currency Sukuk Wakalah Bi Al-Istithmar Programme.

BTMU Malaysia is wholly owned by The Bank of Tokyo-Mitsubishi UFJ, itself rated AAA/Stable/P1 by RAM. Both belong to the Mitsubishi UFJ Financial Group (MUFG) - one of the world’s largest banking groups and also Japan’s leading banking group. The enhanced issue rating reflects the irrevocable and unconditional guarantee extended by BTMU on the sukuk wakalah issued under the programme, RAM Ratings said.

"The bank and its parent constitute part of the BTMU Malaysia’s ratings benefit from a strong likelihood of support from its parent. The ratings also reflect its robust capitalisation, superior loan quality and stable income-generating capacity," said RAM in a statement.

BTMU Malaysia’s loan base expanded 9% in the 15-month fiscal period ended 31 March 2017; the Bank recently changed its financial year-end from 31 December to 31 March. BTMU Malaysia’s loan portfolio is of superior quality as a result of its focus on the Malaysian-domiciled entities owned by established Japanese conglomerates, multinationals and highly-rated domestic names, RAM Ratings notes.

Initial tranche for Meethaq Sukuk Programme closes June 1

The debut issuance under the Meethaq Sukuk Programme, Series 1, closes on 1 June 2017.

Series 1 will be for OMR25 million with a green shoe option of a further OMR25 million, in case of oversubscription. It will have a tenor of five years - due 2022 - and will be issued through a public offer which will be open to Omani and non-Omani individuals as well as institutional investors.

Under the programme, Meethaq plans to issue sukuk certificates in several tranches up to a maximum amount of OMR100 million over a period of time which will be listed on the Bond and Sukuk market of Muscat Securities Market (MSM).

Advantages for the Meethaq Sukuk Programme include:

• Strong investment grade entity rating of Baa1 by Moody’s, BBB- by S&P and BBB by Fitch
• Market leader with 36% share in Islamic financing and 34% of total assets in Oman
• Strong Shari'ah Supervisory Board and Compliance Framework under the guidance of renowned shari'ah scholars.
• Shari'ah-compliant fixed income investment opportunity with stable returns and the backing of Meethaq Islamic Banking.
• Attractive return of 5% per annum payable semi-annually over a five-year period

Source: Meethaq website. Poster for Meethaq's sukuk programme.

Interested?

Read the FAQ or apply

The minimum application size is OMR1,002 per applicant for subscription of a minimum 1,000 certificates of OMR1.002 each (inclusive of offer expenses of 2 baisa per certificate) and thereafter in multiples of 100 certificates. Applications for the subscription of fewer than 1,000 certificates will not be accepted.

Islamic Development Bank approves US$715 million in funding

Source: Islamic Development Bank Board Members at the 318th meeting convened in Madinah Al Munawarah, KSA.

Members of the Board of Executive Directors of the Islamic Development Bank, have approved the allocation of US$714.7 million in financing for new development projects in member countries.

Approved financing included:
US$328.5 million for the reconstruction of the Atyrau – Border of Russian Federation (Astrakhan) project in Kazakhstan; 
US$300 million for phase two of the Construction of Rural Housing project in Uzbekistan; and 
US$86 million for the Expansion and Development of the Port of Tripoli project in Lebanon. 

The Board Members were also informed of a US$270,000 technical assistance grant approved by the IsDB Group President, Dr Bandar Hajjar, for Oman aimed at increasing the export value of luban (Editor's note: frankincense) and dates.

Warba Bank celebrates Nasdaq Dubai listing of US$250 million sukuk tranche

Source: Nasdaq Dubai. Celebrating the listing of Warba Bank's sukuk.

Shaheen Al-Ghanem, Chief Executive, Warba Bank, has rung the market-opening bell to celebrate the listing on Nasdaq Dubai of US$250 million perpetual tier 1 Basel III-compliant capital sukuk.

Warba Bank’s sukuk comprises perpetual tier 1 mudarabah capital certificates, non-callable before 14 March 2022, with the initial coupon set at 6.5%. The sukuk listed on Nasdaq Dubai on March 15, 2017.

The sukuk will further strengthen the Kuwaiti bank's capital base and support the bank’s continued growth and development as well as its commitment to Islamic finance. Established in 2010, Warba Bank is expanding its activities in the full range of banking and investment services in Kuwait in compliance with shari’ah principles.

The sukuk reflects the accelerating growth in financial markets ties between the UAE and Kuwait. It also reinforces Nasdaq Dubai’s status as the global leader for sukuk listings, with a total nominal value of US$46.31 billion from issuers in the MENA region and beyond.

The bell-ringing ceremony took place in the presence of HE Essa Kazim, Governor of Dubai International Financial Centre (DIFC), Secretary General of Dubai Islamic Economy Development Centre (DIEDC), and Chairman of Dubai Financial Market (DFM), and senior representatives of Warba Bank, as well as Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai and Hamed Ali, Chief Executive of Nasdaq Dubai.

Al-Ghanem said: “The success of our sukuk in attracting investors from Kuwait, the MENA region and beyond reflects the confidence of the market in Warba Bank’s strategy for growth and development across all our business areas including investment, treasury, corporate banking and retail banking. Nasdaq Dubai’s first-class listing environment, including its close links with regional and global investors as well as its international regulatory standards, provides important support for this capital-raising initiative.”

HE Essa said: “Warba Banks’s choice of Dubai for its sukuk listing further strengthens the collaboration between the capital markets of Kuwait and the UAE, which provides attractive opportunities to issuers and investors as well as supporting wider economic relationships within the GCC. The listing also strengthens the growth of Dubai as the global capital of the Islamic economy under the initiative launched by HH Sheikh Mohammed Bin Rashid Al Maktoum, UAE VP and PM, and ruler of Dubai.”

Al Fahim, Chairman of Nasdaq Dubai, said: “Drawing on our unrivalled network of relationships with regional and international issuers, advisers and investors in the Islamic capital markets, Nasdaq Dubai will expand as a centre for listing sukuk and other Islamic products. We will further streamline and enhance our listing processes to meet the commercial needs of issuers.”

Chief Executive Hamed said: “As one of Kuwait’s and the region’s most active and prominent financial institutions, Al Warba Bank is a very significant addition to Dubai’s sukuk market. We are delighted to support the bank’s expansion across a range of activities by facilitating its capital raising needs and strengthening its links with investors, including through the high visibility that our listing platform provides across the region and internationally. We are in contact with a number of leading Kuwait companies and institutions and look forward to providing them with an effective listing venue that will assist their development strategies.”

Warba Bank operates through corporate, retail, treasury and investment business functions, offering a variety of banking and investment products as well as financial services to corporate and retail customers.

Hong Kong government lists US$1 billion sukuk on Nasdaq Dubai

Nasdaq Dubai has welcomed the listing of a US$1 billion sukuk issued by the government of Hong Kong on March 1, 2017.

It brings the total value of Hong Kong government-issued sukuk listed on the Middle East’s international financial exchange to US$3 billion following two listings of US$1 billion each in 2014 and 2015.

The new listing strengthens Dubai’s position as the world’s largest venue for sukuk listings by value, raising the total listed in the Emirate to US$48.81 billion. The listings are from a wide range of government, multilateral and corporate issuers across the Middle East and North Africa (MENA) region and East Asia.

Nasdaq Dubai celebrates US$1 billion DIB sukuk listing

+UAE’s largest Islamic bank is nation’s leading sukuk issuer on the exchange

+Listing supports Dubai’s growth as global capital of Islamic economy

Source: Nasdaq Dubai. Mohamed Abdulla Al Nahdi, Deputy Chief Executive of Dubai Islamic Bank (DIB), has rung the market-opening bell to celebrate the listing of a US$1 billion sukuk by DIB on Nasdaq Dubai. The bell-ringing took place in the presence of Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, Hamed Ali, Chief Executive of Nasdaq Dubai, and senior Nasdaq Dubai and DIB executives.

Dubai Islamic Bank (DIB) has rung the market-opening bell at Nasdaq Dubai to celebrate a sukuk listing of US$1 billion. The listing, carried out under DIB’s US$5 billion Sukuk Programme, was the largest senior sukuk issuance by a financial institution globally. It brings the total value of DIB’s current sukuk listings on Nasdaq Dubai to US$4.25 billion, more than any other UAE issuer.

DIB is the UAE’s largest Islamic bank and a pioneer globally in promoting Islamic financing solutions. This issuance carries the additional accolade of being the largest-ever transaction of its kind by an Islamic bank in the history of Islamic capital markets.

Dr Adnan Chilwan, Group CEO, DIB said: “As a leading Islamic bank, we are committed to promoting successful Shari’ah-compliant financing solutions that support economic development in Dubai and the growth of its Islamic finance infrastructure. Nasdaq Dubai not only provides us with excellent links to investors both regionally and globally but also strong visibility in the marketplace with a well-regulated listing platform.”

The DIB Sukuk listing, which took place on February 15, 2017, raises the total value of all sukuk listed on Nasdaq Dubai to US$45.06 billion, further strengthening the exchange’s position as the world’s largest exchange for sukuk listings by value.

Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said: “DIB is one of the key issuers on Nasdaq Dubai and our close relationship supports Dubai’s growth as the global capital of the Islamic economy, under the initiative launched by HH Sheikh Mohammed Bin Rashid Al Maktoum, UAE VP and PM, and Ruler of Dubai. We are working to further strengthen our relationship with DIB as well as other regional and global Islamic finance institutions.”

Hamed Ali, Chief Executive of Nasdaq Dubai, said: “As we prepare for further growth in the sukuk sector regionally and globally, Nasdaq Dubai will constantly enhance its listing processes and links to investors. We aim to provide issuers with maximum flexibility and streamlined procedures before listing, as well as efficient post-listing infrastructure and visibility.”

DIB’s earlier sukuk listings on Nasdaq Dubai comprise a US$1 billion listing in 2013, two listings in 2015 respectively of US$750 million and US$1 billion, and a listing in 2016 of US$500 million.

Funds sought to accommodate 200 special-needs students in Islamic classes this year

Source: MIJ crowdfunding page. Kinaesthetic learning in action.

Singapore-based My Islamic Journey (MIJ) Education Hub, established in 2011, is running a crowdfunding campaign to pay for better facilities and services around Islamic education for special needs children and adults.

The facility offers weekly Islamic classes conducted by qualified asatizahs who are also certified in early-childhood and special-needs education. The special-needs students are individuals aged 5 to 25 who may be on the autism spectrum or have attention deficit hyperactivity disorder (ADHD), dyslexia, Down's syndrome or global developmental delays (GDD). The classes focus on
unambiguous, explicit teaching strategies, individual learning strengths as well as preferred learning styles.

"We believe that all students can learn.. just perhaps not on the same day or the same way," runs a statement on the MIJ website.

MIJ has more than 200 students enrolled this year for seerah, fiqh (فقه) - the theory of Islamic law, tauheed (توحيد) - the concept of monotheism - and Quran memorisation classes, but MIJ's current premises is too small for an enrolment of this size. Rather than turn anyone away, MIJ is now seeking funds for a bigger space that will be renovated to accommodate their students' learning challenges.

It needs about US$105,000 to fully expand the school but will work with whatever amount is raised. MIJ already relies on donations to subsidise lessons for students from low-income or working-class families. Only 27 of MIJ's 200 students are currently paying the full fees.

The proposed space is to have therapy and gym rooms to help special-needs students who are kinaesthetic learners*. The funds will also help the school buy equipment and teaching aids, with the money budgeted as follows:

US$21,000: therapy and gym rooms
US$21,000: teaching materials, audio-visual aids, computers and other teaching aids
US$49,000: renovations
US$14,000: office/school equipment

Programmes offered by MIJ include Tafsir & Hadith for Ladies, Quranic Tahsin for Ladies, Basic Quranic Literacy for Ladies, Fiqh & Solat for Youths and Young Muslims, Arabic tuition for madrasah students and a Muslim toddlers’ club.

The founders of MIJ, Faraliza Zainal and Ali Dawood, are themselves parents of a special needs teen. Their son is autistic and is now learning to call the adhan (أَذَان‎‎, the call to prayer before salah). He communicates and performs his salah (صلاة, the five obligatory daily prayers) diligently.

Interested?

MIJ is at 61, Ubi Ave 2, AML Building, #08-06 Singapore 408898

Donate to MIJ by end-February 2017 - the goal stated on the crowd-funding page is US$40,000, short of the budgeted amount.

*A kinaesthetic learner is one who can register and process information the most via physical movement.

Islamic Development Bank finalises funding for new development projects in Middle East

The Board of Executive Directors of the Jeddah-based Islamic Development Bank (IsDB), in its 316th meeting, has approved funding of US$863 million for new financing development projects in a number of member countries, including the UAE, Bahrain, and Jordan. 

Financing approvals for the Middle East included: 

- US$170 million for the “non-sovereign project financing participation in the Dewa 800 MW Photo-voltaic Solar Power Plant – Phase III” in Dubai, UAE

- US$105 million for the “aluminum Bahrain BSC (Alba) 1,350 MW Power Plant (PS5) under Line 6 expansion project” in Bahrain 

- US$5 million for the “solar power plant – King Hussein Cancer Center expansion project” in Jordan 

The meeting also approved to a number of programmes, including a proposed three-year action plan (from 2017 to 2019) totalling US$16 billion. It further approved a US$5.2 billion budget for the new fiscal year 2017 and reviewed the major components of the IsDB President’s programme for the next five years. 

Islamic Development Bank lists sukuk in London, Dubai and Malaysia

The Islamic Development Bank (IsDB) has successfully priced a US$1.25 billion, five-year trust certificates (sukuk) under its US$25 billion Trust Certificate Issuance Programme. The certificates will be listed on the London Stock Exchange, NASDAQ Dubai and Bursa Malaysia (under the exempt regime).

Overall, the deal saw strong participation from money managers and official institutions, which showed confidence in IsDB’s credit strength. The sukuk were priced at par at 2.263%, to be payable on a semi-annual basis. This issuance marks the bank’s second benchmark issuance in 2016. In terms of the final allocation, the distribution was well diversified with 72% allocated to the Middle East and North Africa (MENA) region, 25% to Asia and 3% to Europe, respectively. Central banks and official agencies were allocated 90% followed by 10% to banks.


IsDB’s ability to issue a sizeable benchmark in a volatile environment is a clear testament to its strong credit and financial position, as affirmed by its AAA ratings. IsDB maintains ratings of Aaa, AAA and AAA by Moody’s, S&P and Fitch respectively.

“We are very pleased with the outcome of the deal, which met our objectives for the transaction to continue building on the success of our prior deals,” said Dr Ahmet Tiktik, IsDB’s Acting VP of Finance and Chief Financial Officer. “I would like to thank IsDB’s member countries and other investors for their continuous support and commend the lead managers for delivering a deal that fully met our objectives. We hope that this further IsDB funding will continue to contribute towards
extending bigger financing to our member countries to support their developmental needs.”

The joint lead managers and joint bookrunners were Boubyan Bank, Credit Agricole CIB, GIB Capital, JP Morgan, Mizuho Securities, National Bank of Abu Dhabi, NATIXIS, RHB Investment Bank and Standard Chartered Bank.

IdeaLab 2016 to give ASEAN startups a boost

IdeaLab 2016 is a two-day boutique startup conference focusing on ASEAN startup cross-border linkages, and the Malaysian startup ecosystem, and includes the Malaysian Business Angels Network (MBAN) Summit (All About Angels) for investors worldwide. According to the organisers, 500 of the best startups, investors and corporates in the ASEAN ecosystem have been targeted.

Delegates can attend the Ideation Stage, where industry leaders will discuss pressing issues for startups in ASEAN; the IdeaPad Stage where the best ASEAN startups battle it out in front of a panel of judges; and the IdeaClinic, where startups get real-time advice on legal, public relations and marketing issues.

In Startups Anonymous; breakout rooms allow ASEAN startups to share their challenges and experiences, while Networking Pods offer an online-to-offline platform for setting up discussions between participants during the event. The MBAN Summit (All About Angels) will introduce traditional investors to the startup ecosystem, whereas the Startup Ecosystem Fair will showcase the major players in the Malaysian startup ecosystem and some of the best startups in the ASEAN region.

The event is part of Malaysian Entrepreneurship Week, from 31 October to 3 November, a collaboration between the Malaysian Global Innovation and Creativity Centre (MaGIC), the WIEF Foundation, MBAN, the Malaysian Ministry of Science, Technology and Innovation (MOSTI) and the Global Startup Awards.

The week begins with IdeaLab and the MBAN Summit from 31 October to 1 November at Berjaya Times Square Hotel in Kuala Lumpur, Malaysia, followed by the Global Entrepreneurship Community (GEC) hosted by MaGIC on 2 to 3 November at the Kuala Lumpur Convention Centre, focusing on creating a collaborative platform for entrepreneurial innovation between the major and micro ecosystem builders in the global startup space. The MOSTI Commercialisation Year conference will run parallel to the GEC. The Global Startup Award ceremony will be held on 3 November.

DP World celebrates sukuk listing with market-opening bell ceremony

Source: Nasdaq Dubai. Sultan Ahmed Bin Sulayem, Group Chairman and CEO of global trade enabler DP World, rang the market-opening bell end-June to celebrate the listing on Nasdaq Dubai of a US$1.2 billion sukuk. The bell-ringing ceremony was held in the presence of His Excellency Essa Kazim, Governor of Dubai International Financial Centre (DIFC), Secretary General of Dubai Islamic Economy Development Centre (DIEDC), and Chairman of Dubai Financial Market (DFM); Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai; and Hamed Ali, Chief Executive of Nasdaq Dubai.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO of global trade enabler DP World, has rung the market-opening bell to celebrate the listing on Nasdaq Dubai of a US$1.2 billion sukuk. DP World’s sukuk listed on Nasdaq Dubai on June 1, 2016. It is the company’s fourth debt listing on the exchange, reinforcing Dubai’s status as the global leader for Islamic bond listings, with a total nominal value of US$44.56 billion.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: “As the international financial exchange serving the Middle East, Nasdaq Dubai is an excellent listing venue to support the global visibility of our sukuk. Our issuance received strong investor demand from around the world, including the US and Europe as well as our own region, underlining the market’s confidence in our continuing development and growth as a leading trade enabler connecting marine and inland terminals, free zones and logistics for the benefit of economies around the world.

“Our sukuk listing fits with the vision of our leaders to position Dubai as the capital of the Islamic economy globally. The demand for it illustrates the positive outlook on our strategic growth and confidence in the strength of our global network across six continents.”

HE Essa Kazim, Governor of Dubai International Financial Centre (DIFC), Secretary General of Dubai Islamic Economy Development Centre (DIEDC), and Chairman of Dubai Financial Market (DFM), said: “DP World’s decision to choose Nasdaq Dubai for its listing highlights the growth of the Sukuk sector in the Emirate, accelerating the expansion of Dubai as the global capital of Islamic economy under the initiative launched by HH Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minster and Ruler of Dubai. Dubai provides unrivalled expertise across all aspects of sukuk activity.”

Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said: “Our Islamic capital markets framework is purpose built to support leading companies such as DP World that require a high profile platform for their securities, within a robust regulatory environment. We look forward to welcoming many more UAE, regional and international sukuk issuers as the sector continues to expand as an attractive tool for enterprises to raise capital.”

Hamed Ali, Chief Executive of Nasdaq Dubai, said: “This listing by one of Dubai’s most prominent international enterprises reflects the emirate’s continuing expansion as a hub for attracting investors from around the world. Nasdaq Dubai will further enhance its listing infrastructure and procedures, to ensure streamlined access to the exchange for issuers of diverse asset classes and continuing support for them after listing.”

Noor Bank rings market-opening bell at Nasdaq Dubai to mark listing of US$500 million sukuk

Source: Nasdaq Dubai. Hussain Al Qemzi, CEO, Noor Bank rings the market-opening bell to celebrate the listing of Noor Bank’s US$500 million debut Tier 1 sukuk on Nasdaq Dubai. The bell-ringing ceremony took place in the presence of His Excellency Essa Kazim, Governor of Dubai International Financial Centre (DIFC), Secretary General of Dubai Islamic Economy Development Centre (DIEDC), and Chairman of Dubai Financial Market (DFM); Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai; and Hamed Ali, Chief Executive of Nasdaq Dubai.

• 11th sukuk listing in Dubai this year reflects active market for issuers and investors
• Listing reinforces Dubai’s role as the global capital of Islamic economy

Hussain Al Qemzi, CEO of Noor Bank, one of the fastest growing Islamic banks in the region, has rung the market-opening bell to celebrate the listing of Noor Bank’s US$500 million debut Tier 1 Sukuk on Nasdaq Dubai. The listing was the 11th sukuk listing in Dubai this year, as well as the first perpetual tier 1 Sukuk issued this year from the UAE. The total nominal value of listings in Dubai has reached US$44.56 billion, demonstrating the robust growth Dubai has achieved as the leading global centre for sukuk listings.

HE Essa Kazim, Governor of Dubai International Financial Centre (DIFC), Secretary General of the Dubai Islamic Economy Development Centre (DIEDC) and Chairman of Dubai Financial Market (DFM), said: “The successful issuance of this sukuk by a leading UAE bank, followed by its listing on Dubai’s international exchange infrastructure, demonstrates Dubai’s excellence across all aspects of the Islamic bond sector. The Emirate will continue to strengthen its expertise in this field in line with the growth of Dubai as the global capital of the Islamic economy under the initiative launched by HH Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minster, and Ruler of Dubai.”

Hussain Al Qemzi, CEO, Noor Bank, said: “We are delighted with the outcome of our debut Tier 1 issuance, which witnessed strong investor demand in the international capital markets. Our listing on Nasdaq Dubai, an international financial exchange, provides the issuance with global visibility and internationally recognised regulatory architecture. Through this issuance, we will significantly boost our capital ratios to further support the future balance sheet growth of the bank.”

The perpetual tier 1 sukuk listed on Nasdaq Dubai on June 2, 2016. The listing follows Noor Bank’s inaugural US$500 million senior unsecured sukuk which was listed on the exchange in April 2015.

Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said: "The issuance and listing of Noor Bank’s latest sukuk provides further evidence that activity in the Islamic bond market is strong, as a result of significant issuer appetite for capital and investor demand for well structured Islamic products. Nasdaq Dubai will further enhance its infrastructure and procedures in order to provide a competitive listing environment than meets issuers’ changing requirements.”

Hamed Ali, Chief Executive of Nasdaq Dubai, said: "We are in discussion with a substantial number of potential sukuk issuers who wish to list their securities on the exchange in coming months, to benefit from the high profile and regulatory excellence that it provides. As the Islamic capital markets expand and develop both in the region and internationally, we are preparing to introduce further initiatives and innovation in a variety of asset classes.”

MARC scores Westports Malaysia's Sukuk Musyarakah Programme as AA+IS

MARC has affirmed its AA+_IS rating on Westports Malaysia's RM2 billion Sukuk Musyarakah Programme with a stable outlook. Westports handles a multi-cargo port in Pulau Indah, Port Klang, Malaysia.

In affirming the rating, the rating agency considered the potential migration of container traffic volume by one of Westports’ major clients, CMA CGM, to Pasir Panjang Terminal in Singapore. CMA CGM, which contributed 3.31 million twenty-foot equivalent units (TEU), or 37% of Westports’ total TEUs handled in 2015, is expected to move a portion of its existing traffic to Singapore following the setting up of a joint venture with the Port of Singapore Authority. The impact on Westports’ business and financial performance from CMA CGM’s move at this juncture is limited given that any decrease in the liner’s transhipment throughput could be gradual and that a new shipping alliance set to launch by April 2017 could see some traffic being routed to Westports under a dual hub strategy which is likely to be pursued by the new alliance.

Westports’ affirmed rating continues to be supported by its strong cash flow-generating ability, stemming from a steady operational and sound productivity performance. The port retains a strong competitive position, underpinned by its strategic location along one of the world’s busiest shipping lanes. These strengths are moderated by Westports’ exposure to high client concentration risk and to the vagaries of the global shipping industry.

As at end-2015, Westports’ container handling capacity stood at 11 million TEUs, which is expected to increase by 2.5 million TEUs by end-2017. It remains the dominant port operator in Port Klang, which is ranked the 12th busiest container port globally. MARC believes Westports’ continued investments in upgrading its port capacity and operations have been key in generating throughput growth and maintaining strong operating efficiency. The port achieved a throughput growth of 8.3% year-on-year to 9.1 million TEUs in 2015, translating to a CAGR of 9.2% between 2011 and 2015. For 2015, the port utilisation rate improved to 82.3% from 76.1% in the previous year. The higher port utilisation rate contributed to slightly longer vessel waiting time. MARC expects the vessel waiting time to improve gradually with the commencement of phase one of container terminal 8 (CT8) in April 2016.

While Westports’ debt-to-equity ratio stood at a moderate 0.62 times at end-2015 (2014: 0.66 times), the rating agency expects the port operator to prudently manage its port expansion and debt levels. In 2016, management has budgeted RM750 million for expansion and maintenance capital expenses to be funded by internally-generated funds and short-term borrowings. Westports’ outstanding amount under the sukuk programme is RM1.15 billion as at end-2015; its first two payments of RM50 million each are due in April 2021 and May 2021 respectively.

The outlook on Westports remains stable on expectations that the port operator will continue to maintain its operational and financial metrics at current levels. A prolonged economic downturn, reduction of port calls as a result of industry consolidation and/or erosion in its cash flow and leverage metrics would exert downward pressure on Westports’ rating.

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MARC rates TNB Northern Energy's sukuk as AAAIS

MARC has affirmed its AAA_IS rating on TNB Northern Energy's Islamic securities (sukuk) of RM1.625 billion with a stable outlook.

TNB Northern Energy was established to finance and develop a 1,071.43-megawatt combined-cycle gas turbine power plant in Seberang Perai Tengah, Penang, under a 21-year power purchase agreement (PPA) with offtaker Tenaga Nasional (TNB). TNB Northern Energy is 100% owned by TNB Prai which is itself a fully-owned TNB subsidiary.

The rating and outlook are equalised with those of TNB Northern Energy’s ultimate parent TNB, on which MARC currently has a senior unsecured rating of AAA/Stable. The rating equalisation is based on TNB’s commitment in the form of an unconditional and irrevocable project completion support guarantee and post-completion rolling guarantee in favour of sukuk holders. MARC’s assessment is further underpinned by TNB’s undertaking to maintain full ownership of TNB Northern Energy in addition to the operational proximity and financial linkages between the two entities.

The power plant project achieved full commercial operation date (COD) on February 20, 2016, following a 50-day delay from the original scheduled COD. The delay, which was attributed to design issues and defects encountered during the commissioning phase, has resulted in liquidated damages (LD) of RM32.1 million payable to TNB. MARC notes that TNB Northern Energy will claim a LD payment of RM59.6 million from the engineering, procurement and construction (EPC) contractor, Samsung C&T KL. The delay, coupled with the weakening ringgit, has led to a 3.9% increase above the original project cost budget to RM2,587.3 million at completion. The increase, however, remains well within the project sponsor’s completion support guarantee of 10% or RM249 million.

The plant’s operations and maintenance (O&M) duties are carried out by related entity TNB Repair & Maintenance (TNB Remaco) under a 21-year O&M agreement. The rating agency notes that the LD provision under the O&M agreement is not sufficient to recover any revenue losses given that TNB Remaco is only liable for up to 30% in capacity payment reductions and non-reimbursable fuel cost in the event of breaches in the contracted average availability target, net output capacity and net heat rate. Nonetheless, O&M risk is mitigated through the availability of plant warranty and long-term turbine maintenance support provided by Samsung and Siemens respectively. With regard to fuel supply risk, the long-term gas supply agreement with Petroliam Nasional addresses this concern.

The project revenue in the form of availability capacity and energy payments subject to meeting performance standards under the PPA provides sufficient coverage to TNB Northern Energy’s fairly flat debt servicing profile. The company is expected to achieve an average finance service cover ratio (FSCR) without cash balances of 1.31 times during the sukuk tenure. MARC views TNB Northern Energy’s finance service ability as adequate even after taking into account the COD delay which has led the projected cash balance being revised downward by RM4 million to RM33 million as at December 31, 2016. TNB Northern Energy’s designated account balances of RM118 million as at April 30, 2016 is well above the finance service obligations of RM70 million for 2016.

MARC’s sensitivity analysis reveals that the project coverage is only able to withstand mild stresses due to the absence of cash build-up. TNB Northern Energy is expected to return about RM834 million of capital to its shareholders during the sukuk tenure subject to meeting a distribution finance service cover ratio of 1.5 times. The rating agency expects the project sponsor’s rolling guarantee to act as a reliable liquidity source during periods of weaker-than-projected cash flows.

The stable outlook mirrors the outlook on TNB's senior unsecured rating. Any changes in TNB Northern Energy's rating and/or outlook would be primarily driven by a revision of TNB's rating and/or outlook.

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Read the Suroor Asia blog post about MARC's analysis of TNB Western Energy's sukuk 

Malaysia is No. 1 for global sukuk issuance, followed by Indonesia

RAM Ratings says shari'ah-compliant securities accounted for 53% (or RM33.1 billion) of government, quasi-government and corporate debt issues in Q116. The company expects RM100 billion to RM120 billion of gross issuance for the domestic sukuk market in 2016, underscored by the government of Malaysia’s ongoing efforts to deepen the sukuk market through the issuance of Islamic securities to finance its budget deficit.

The latest issue of RAM’s Sukuk Snapshot reports that of the RM28.5 billion of government securities (Islamic and conventional) issued as at end-March 2016, about 51% constituted Islamic securities. This was followed by the government's fifth global sukuk issuance of US$1.5 billion in April.

Indonesia is in second place, after Malaysia, in terms of global sukuk issuance by country as at end-2015, with a 12% market share (or US$8.2 billion) ahead of Saudi Arabia’s 10% (US$6.4 billion). “We are closely monitoring Indonesia’s progress in the sukuk arena, which is quickly gaining traction,” said Ruslena Ramli, RAM’s Head Islamic Finance. Indonesia, with a projected GDP growth of 5.5% this year, has the economic momentum to rival its peers in tapping the global sukuk market vis-à-vis funding its fiscal deficit, says RAM, which stated that Indonesia is still firmly committed to promoting sukuk issuance as part of its government’s efforts to finance its budget deficit while deepening the local bond market.

As at end-March 2016, Indonesia maintained its lead with a 15% share (or US$2.8 billion) of global sukuk issuance - compared to Saudi Arabia’s 11% (or US$2.1 billion) - and looks set to continue its trajectory in expanding its Islamic finance market. For the same period, Malaysia’s better performance (inclusive of foreign-currency issuance) brought global sukuk issuance to US$18.9 billion in total while strengthening its own contribution to 57% (or US$10.7 billion).


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The monthly Sukuk Snapshot is designed as a quick reference point for sukuk data and trends. Subscribers can read the Sukuk Snapshot via the RAM website. Non-subscribers may purchase the report at RM530 (inclusive of GST) per copy. For further enquiries, call Ain at +603 7628 1108