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Meezan Bank in pole position to acquire HSBC Pakistan

Meezan Bank Limited was granted permission by the State Bank of Pakistan (SBP) to conduct due diligence of HSBC Pakistan’s operations. The management of Meezan Bank is reportedly in discussion with HSBC Bank Middle East Limited (HBME) for evaluating a possible transaction involving acquisition of the Pakistan operations of HBME. HSBC Pakistan was put on the block early 2012 and attracted interest from major banks. On June 30, 2012, the business to be sold had 10 branches and gross assets worth Rs60.06 billion (approximately $635 million). Interestingly, in November 2013, Vision Financial Holdings Limited had also shown interest in acquiring 49.11 percent or 492 million shares of Meezan Bank Limited. However, the two transactions are said to be completely unrelated.

Minority affairs ministry to discuss Islamic endowments

India's Ministry of Minority Affairs has enlisted a Kuala Lumpur-based body to help develop Islamic endowments, or awqaf, aiming to mobilise a large pool of assets in the country. India, with an estimated 177 million Muslims, has a large base of awqaf but many of their assets are far from being employed efficiently; their estimated annual income is just 1.63 billion rupees. Last month, Indian Prime Minister Manmohan Singh inaugurated the National Wakaf Development Corporation, to help management of the properties become more transparent. Efforts to strengthen India's awqaf could conceivably be a precursor to developing an Islamic banking sector in the country. However, its secular laws still largely forbid the selling of sharia-compliant banking.

Indian ministry to discuss developing Islamic endowments

India's Ministry of Minority Affairs has enlisted a Kuala Lumpur-based body to help develop Islamic endowments, or awqaf, aiming to mobilise a large pool of assets in the country. India, with an estimated 177 million Muslims, has a large base of awqaf but many of their assets are far from being employed efficiently; their estimated annual income is just 1.63 billion rupees ($26.3 million). The World Islamic Economic Forum Foundation will hold a roundtable later this year to discuss ways to improve management of India's estimated 490,000 waqf properties. However, efforts to strengthen Islamic finance in India have in the past met strong opposition from bureaucrats in the finance ministry and banking circles.

CBN, IFC To Host 2014 International Sustainable Banking Forum In Lagos

The International Finance Corporation (IFC) and the Central Bank of Nigeria (CBN) have announced plans to host the second International Sustainable Banking Forum in Lagos from March 3 to March 4. The forum will serve as a platform to share experience and build partnerships for sustainable banking in emerging markets. It is to attract policy makers from governments, multilateral development banks, financial institutions, civil society organisations and technical institutions. The IFC said that sustainable banking helped banks and financial institutions to understand better the benefits and risks of environmental and social impacts of their investments and loans.

National Commercial Bank sells SAR5bn sukuk

The National Commercial Bank (NCB) has successfully placed its 5 billion Saudi riyal (Dh4.89 billion) 5-year subordinated Tier II capital sukuk offering. Great interest from the investor community generated a 2.1x oversubscribed orderbook exceeding the initial target issuance size of 4 billion riyals, allowing the transaction to be upsized to 5 billion riyals without impacting the final pricing of the sukuk. NCB’s issuance was priced at 6-month SIBOR+110bps. HSBC Saudi Arabia acted as a lead coordinator and GIB Capital, HSBC Saudi Arabia, JP Morgan Saudi Arabia and NCB Capital acted as joint lead managers and joint bookrunners. The issuance proceeds will be used to further support NCB’s growth plans across the various business segments of the bank.

Malaysia's Public Bank seeks approval for $1.5 bln Basel III sukuk-IFR

The sharia compliant arm of Malaysia-based Public Bank has submitted a proposal to the central bank for a 5 billion ringgit ($1.5 billion) Basel-III compliant Islamic bond program. Public Islamic Bank, a wholly-owned unit of Public Bank, may emerge as the third issuer of Basel III compliant sukuk. AmIslamic, which established a Basel III compliant sukuk program for 3 billion ringgit on Feb 13, sold 200 million ringgit on Wednesday. RHB Capital received approval from the securities commission for a similar 1 billion ringgit program earlier this month. Besides, the country's conventional banks have begun issuing Basel III bonds; Public Bank issued medium-term notes worth 1 billion Malaysian ringgit last September.

Khalid Ibrahim VS Bank Islam: March 18 Fixed For Case Management

he High Court fixed case management on March 18 to allow possible settlement between Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim and Bank Islam Malaysia over two suits linked to a RM66.67 million loan to purchase Guthrie shares 13 years ago. According to Khalid's counsel S. Selvarajah, his client and Bank Islam are seeking to reach a global settlement over the matter. In 2007, Khalid had filed a suit against the bank to seek a declaration that the Al-Bai Bithaman Ajil(BBA) facility entered between them in 2001 was null and void. Khalid also sought a declaration that Bank Islam had breached the collateral contract and the BBA facility. Bank Islam then countersued Khalid, claiming that Khalid had breached its contract in the loan agreement over his purchase of the Guthrie shares.

Islamic banking represents 12 percent of industry: Deputy Governor SBP

Islamic banking industry in Pakistan has been growing at a fast pace ever since its re-launch in 2002 and now represents over 12 percent of overall banking industry with 19 Islamic banking institutions offering Islamic banking products and services through a network of over 1300 branches across the country. The State Bank pf Pakistan (SBP) has announced a five-year strategic plan for the Islamic Banking Industry (IBI) aimed to provide a roadmap to the industry for the next level of development. Moreover, SBP has decided to strictly monitor the performance of the Islamic Banking industry in order to ensure that they are operating according to Sharia. Besides, SBP is working on its major role to ensure the participation of every citizen in the financial system, through its Financial Inclusion Policy.

Asia Trails Gulf Global Sales on Capital Curbs: Islamic Finance

Growth in Asia’s foreign-currency sukuk issuance is being hindered by capital controls, leaving the Persian Gulf dominating a market that exceeded $17 billion in the past two years. Malaysia’s central bank requires local companies seeking to sell overseas bonds to show a legitimate funding need to reduce currency speculation. In Indonesia, corporations must supply information on the potential foreign-exchange risk, whether they intend to hedge, as well as their dollar and rupiah cash flows under rules put in place by the Financial Services Authority in 2002. This is because Malaysia and Indonesia want to protect their reputation and ensure that issuers won’t default on foreign-currency debt.

ABC Islamic Bank announces 48 per cent increase in 2013 year-end net profit of $12.2 million

ABC Islamic Bank has announced that its net profit for the year ending 2013 was $12.2 million, 48 per cent higher than the previous year of $8.3 million net profit. Net profit for the fourth quarter of 2013 was $3 million, 112 per cent higher than the same period of 2012. Total operating income grew 12.8 per cent to $18.1 million compared to $16 million in the previous year while operating expenses decreased by more than 20 per cent to $5.5 million. The Bank’s capital base remains very strong with a capital adequacy ratio of 27.6 per cent, predominantly Tier 1, which totalled 26.2 per cent. ABC Islamic Bank’s total assets stood at $1.002 billion.

Islamic Development Bank Aims To Price Benchmark Sukuk On Thursday

Islamic Development Bank is aiming to price a benchmark-sized Islamic bond issue on Thursday after releasing initial price guidance for a five-year deal. The supranational lender set initial guidance at mid-to-high 20s over midswaps. While no definitive size has been set for the issue, the first from the AAA-rated bank since May, it was expected to be benchmark-sized – which is traditionally understood to mean in excess of $500 million. The banks arranging the transaction are CIMB, Commerzbank, First Gulf Bank, HSBC, Natixis, National Bank of Abu Dhabi and Standard Chartered.

Sharia and start-up struggles

Building a start-up as an observant Muslim in Philadelphia presents unique challenges, from identifying financial practices acceptable under sharia law to deciding whether and how to compromise on selling forbidden wares such as pork, lottery tickets, and alcohol. But it also presents unique opportunities. Among them could be a market for the region's first Muslim credit union. The U.S. lags far behind other countries when it comes to the Islamic-finance sector. Only a handful of American banks have begun offering sharia-compliant home mortgages. A credit union could assist with many of the financial needs of Muslims in the USA.

SBP wants inclusion of more people in Islamic Banking system

State Bank of Pakistan and other banks engaged in Islamic Banking have sought media support in mobilizing and inclusion of more people from all sections of the society in the source banking system, especially the agriculture, micro-finance and housing sectors.. In order to create awareness and better understanding among the media people, a two-day workshop on 'Islamic Banking' has been organised for them. The Director of SBP's Islamic Banking Department, Saleemullah, said the print and electronic media is the best tool for opinion making and mobilizing the people towards Islamic banking, Besides establishing riba-free economy, however, the corruption in the society must end. Otherwise, the poverty can not be eliminated.

Short-term Islamic bonds in six months

The Director of the Islamic Banking Department of the State Bank of Pakistan (SBP), Saleem Ullah, has said that the mechanism for short-term liquidity instruments for Islamic banks is being evolved and the launch of these bonds is expected in the next six months. Currently, Islamic banks can only invest in three-year government ijara sukuk. Earlier, experts on Islamic banking and finance agreed the Islamic banks can invest in government activities and projects much like conventional banks but there is a need to create an underlying asset. Another expert said that while the industry has been partially successful in eliminating riba from banking transactions, it needs to introduce diversified products for those segments of the society, which want Islamic investment and financing.

11th IFSB Summit, 19-22 May 2014, Mauritius

The theme for this 2014 Summit is New Markets and Frontiers for Islamic Finance: Innovation and the Regulatory Perimeter.

Please refer to http://www.ifsb.org/preess_full.php?id=240&submit=more for the announcement of the 11th IFSB Summit.

For any queries regarding the Summit, please contact the secretariat:

- Participants' registration

Ms. Yazmin Aziz at yazmin@ifsb.org

Mrs. Ida Shafinaz Ab. Malek at ida.shafinaz@ifsb.org

- Sponsorship and Media

Ms. Rosmawatie Abdul Halim at rosmawatie@ifsb.org

Anti-Terrorism Legislation and Impact in Cross Border Giving

INVITATION TO A RESEARCH INQUIRY
Anti-Terrorism Legislation and Impact in Cross Border Giving

The World Congress of Muslim Philanthropy’s Academy of Philanthropy is leading a research inquiry in collaboration with Cass Business School’s Centre for Charity Effectiveness. After London and Doha, the last of the three dialogues will take place in New York.

This concerns the barriers to giving for international development and relief that affect donors and recipients alike, in the light of continuing international agreements and practices enshrined in legislation. Our work is seeking to identify ways forward for international dialogues to best support and enhance accountable giving and its efficient flow between nations. The findings of the research will be reported to the WCMP’s biennial Global Donor’s Forum, to be held in Washington, DC from April 14-16, 2014.

Donors, nonprofit and development sector representatives, and financial institution executives are welcomed to participate in the dialogue and share their experiences and offer suggestions.

Tuesday, March 4, 2014 - 10.00 am to 4.00 pm
Organization of Islamic Cooperation (OIC) Observer Mission to the UN

Accusations to Lamido Sanusi’s : The Report published against him

After the suspension of the Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi, a report of the Financial Reporting Council of Nigeria was published. The council also advised the President to cause the CBN Governor to cease from holding that office.

The link shows the details of the accusations, which came after the Governor accused the national oil company of USD 20 bn fraud.

International Islamic has eyes set on corporate financing expansion

After gaining the leadership position in Shariah-based retail banking, International Islamic has its eyes firmly set on improving its presence in corporate financing, said CEO Abdulbasit A al-Shaibei. Corporate financing is expected to have an exponential growth in Qatar, particularly in the next two to three years. In line with this, the Doha-headquartered lender has activated its trade finance department. Besides, the bank is an active partner with Qatar Development Bank in its initiative to help SMEs flourish. Registering growth across various portfolios of its core business, International Islamic posted a full-year net profit of QR750mn in 2013, up 10.5% on 2012. The bank earned a total revenue of QR1.5bn in 2013. Assets totalled QR34.4bn last year, indicating a 20.5% growth compared to 2012.

ICD wants IFTDP program to be 'gold standard'

The Islamic Corporation for the Development of the Private Sector (ICD) has celebrated the completion of the First Cohort of its Islamic Finance Talent Development Program (IFTDP) last week. The IFTDP has been designed for mid-career professionals who possess prodigious leadership competencies. Its sole objective is to build up a pool of highly talented Islamic finance executives who are capable of leading the Islamic finance industry in the future. The IFTDP for experience professional has a rotational program that includes three eight-month assignments in an IDB Group sub-business and a comprehensive in-residence global training curriculum over the course of two years. The classroom training will lead to the Certified Islamic Finance Professional (CIFP) qualification, awarded by INCEIF.

First ever sukuk to be issued by an export-import bank

Export-Import Bank Malaysia (Exim Bank) has established a RM3.3 billion (US$1 billion) Multicurrency Sukuk Issuance Programme under the special purpose vehicle, Export- Import Sukuk Malaysia. On Feb 19, 2014, the first sukuk series from the programme was issued. A hybrid structure was decided upon on the basis of wakala principle. The Exim Bank sukuk received strong investor demand. It was oversubscribed by approximately 10 times attracting approximately US$3.2 billion orders. The strong demand from the investors allowed the sukuk to be priced at the tighter end of final price guidance at T+140 bps following an initial price guidance of T+165 bps area, which is equivalent to an all-in yield of 2.87% per annum.

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