The Islamic Corporation for the Development of the Private Sector (ICD) hopes to advise on the mandate for Pakistan's $1 billion Islamic bond. ICD and Karachi-based Burj Bank, 33.9 per cent owned by ICD, have applied to be advisers on the sovereign deal, meeting Pakistan's finance ministry earlier this week. A ministry statement also said that it would review the applications starting next week. The ICD has further initiatives in the pipeline. Among others, ICD signed separate agreements to help develop Islamic leasing businesses in Malaysia and Uzbekistan, as well as extending $5 million in financing to support SME lending in the former soviet state.
Pakistan's central bank will sell 49.5 billion rupees ($503.8 million) of Islamic bonds, the country's first such issuance in 15 months, with pricing to be set on Wednesday. The sukuk will inject a much-needed liquidity management tool for the domestic Islamic banking industry. The appetite for local currency sukuk has grown with Islamic banks posting double-digit asset growth, but the government has been unable to match demand, constraining the sector's financing and investment capability. The government has not indicated whether it would issue more local currency sukuk this year, although the finance ministry has said it was considering issuing dollar-denominated sukuk.
State-owned Ziraat Bank has interest in buying the Islamic bank Bank Asya. Yet nothing is official just now, according to Ziraat Bank, a state owned bank. The move would allow Ziraat to enter the Islamic banking market. The Turkish government would also like to change the banks’ capital structure that is controlled by Gülen supporters. Bank Asya has been the subject of focus since the Turkish media reported that state-owned companies and institutional depositors loyal to Prime Minister Recep Tayyip Erdo?an had withdrawn around 4 billion Turkish Liras in the wake of the Dec. 17, 2013, graft probe.
An Iranian trial and execution raised questions about corruption at high levels in various countries. Reports said that Mahafarid Amir Khosravi, a billionaire businessman was executed in a prison, North of Tehran for being involved in a $2.6 billion state bank scam, the largest fraud case since 1979 Islamic Revolution in Iran. The public in America, Britain and other European countries reacted with surprisingly many comments on social media platform. They wish such a harsh punishment for their nations in order to deal with corruption amongst politician and businessmen.
The 19th Annual General Meeting of Social Islami Bank Limited was held in Sylhet, Bangladesh. A 12% cash dividend for the financial year 2013 was approved by the shareholders in the AGM. Major (Retd.) Dr. Md. Rezaul Haque, the Chairman of the Board of Directors of the Bank presided over the meeting. Directors of the Bank were present. The Managing Director of the Bank Md. Shafiqur Rahman stated that SIBL maintained and achieved a stable position in 2013 despite of many challenges in all of their key areas of operations.
Bangladesh Islamic finance industry is well developed but lacks sharia-compliant instruments such as sukuk. This is limiting further growth of the sector according to a report. Sukuk would be helpfull to diversify the funding sources and could make up for the limited scope of the Islamic money market in Bangladesh. Islamic banks that follow religious principles are now representing 18.9 percent of all Bangladeshi bank deposits.
The Islami Bank Bangladesh Limited approved 18pc dividend comprising 10pc stock and 8pc cash for the Shareholders for the year 2013. This was announced in its 31st Annual General Meeting, according to a news agency. Further in the meeting, four directors were elected. The AGM was held at the Bangabandhu International Convention Centre. Prof. Abu Nasser Muhammad Abduz Zaher, Chairman of the Bank presided over the meeting. The Shariah Supervisory Committee along with shareholders and high executives of the Bank were also present at the AGM.
The Islamic Financial Services Board (IFSB) is organising a Seminar on Islamic Finance in Kazakhstan with the theme, "Prospects and Challenges in the Development of Islamic Finance for Kazakhstan" on 16 June 2014 in Almaty, Kazakhstan. The National Bank of Kazakhstan will host the Seminar on Islamic finance as well as the IFSB Facilitating the Implementation of Standards (FIS) Workshop Series for Banking and Takaful on 17 - 19 June 2014. The one-day Seminar will cover the following topics: Islamic Finance for Central Asia: Growth with Stability - Regulatory Issues and Key Preconditions; The Role of Sukuk: Infrastructure Financing, Capital Market Instruments and High Quality Liquid Assets (HQLA); Panel Discussion on the Way forward for the Development of Islamic Finance for Kazakhstan.
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Iranian businessman Mahafarid Amir Khosravi, convicted of masterminding a $2.6 billion banking scam, was hanged on Saturday in Tehran''s Evin prison. He was sentenced to death after being convicted of corruption on earth through bribery and money laundering. Revelations about the scandal swept Iran in 2011 when prosecutors uncovered a private umbrella group, led by Amir Khosravi and his brothers. Over the space of two years, Amir Mansour Aria Development Co bought 40 companies with forged letters of credit obtained from several major banks whose managers they had bribed. In addition to Amir Khosravi, three others have reportedly been sentenced to death.
A legal dispute between Pakistani insurance firms and regulators has been resolved after the country's five takaful firms had challenged the new takaful rules introduced in 2012. Under the agreement, insurers will have to allocate 50 million rupees ($506,100) in capital to their window operations, from no capitalisation requirement in the original rules. The takaful rules will be applicable after a three-month period and the regulator would also amend them to allow takaful firms to co-insure risks alongside conventional players, which the initial rules had forbidden. Takaful's share of the total insurance market is estimated at less than 3 percent. The regulator has now received five applications for takaful windows and expects as many as half of all conventional insurers to eventually apply for a licence.
14 Iranian banks are involved in the famous 2011 $3-billion embezzlement case. Iran's prosecutor general Gholam Hossein Mohseni Ejei said that state-run Bank Saderat and Bank Melli were the main banks involved in the case. The prosecutor general went on to say that seven MPs who were accused of involvement in the case acquitted due to lack of evidences. Thirty-nine persons were accused of involvement in the case, and several high-ranking officials including certain persons in judiciary, parliament and presidential administration were persecuted or arrested. In addition to death and life sentences, some defendants banned from government jobs.
Religious investors, in economic terms the third largest group to invest on the world’s stock markets, can post high placement profits and remain faithful to their religious creed. This is the message of the third biennial world report on religious investors, the only report of its kind.
The report highlights the profile of religious investors who respect this balance and thus can have a major influence on company ethics:
- Their principles of faith can serve as a road map for investment choices;
- By nature, these investors have a long-term view which is key to the notion of responsible investment;
- They can call on the support of what is often a worldwide community;
- They have set up networks that offer the chance to work together on stakeholder actions and therefore increase their impact.
Even though a certain number of religious organisations invest responsibly and use their role as shareholder-activists to promote change this sort of profile is far from the majority.
The Islamic Development Bank's (IDB) Board of Executive Directors has approved new fundings totalling $670.9 million for development projects in member and non-member countries. The Executive Directors approved $312.8 million to finance electricity projects in Egypt and Senegal; $110 million to fund the development of a major road in Uganda; $48 million to fund pearl preservation and economic revival projects in Bahrain; $44 million for an underwater communications cable in Bangladesh; and $12.4 million to finance fish farms in Mozambique. Moreover, the executive directors gave their approval for four donations for Muslim communities in non-member Bosnia-Herzegovina, Cambodia, India and Thailand while funds will also be channelled into development projects in Africa.
Pakistan's Minister for Finance Muhammad Ishaq Dar held a meeting with officials from Dubai Islamic Bank ( DIB ) in Dubai where they discussed prospects of another sukuk issuance and hiring an advisor for transparent sukuk transaction. Following the success of Euro Bond wherein Pakistan raised $2 billion from capital market recently, the minister said government intends to tap the sukuk market to increase its foreign exchange reserves. Pakistan plans to sell $1 billion dollar-denominated sukuk which will be marketed at the end of the third or in the fourth quarter of 2014. Dar said Pakistan government would soon release an advertisement in international and local press to hire financial advisor for sukuk transaction through a transparent and competitive process.
Iran's Bank Mellat filed an application for a judicial review against the UK Government in the Administrative Court on 16 April 2014. In its final ruling last June, the UK Supreme Court found that by imposing domestic sanctions against Bank Mellat, the UK Government acted both “unlawfully and irrationally”. Following the UK Supreme Court decision, Bank Mellat had asked the UK Government to withdraw its 2010 listing proposal to the EU Council. It was hoped that this may have been sufficient to convince the EU Council to give up on its own sanctions against the bank. However, the UK Government has refused to withdraw the proposal. The UK Government has also now applied for permission to intervene in support of the EU Council’s appeal against the first European Court decision.
A move by Iran to recover bad debts on behalf of banks has shed light on possible corrupt lending under the country’s previous president Mahmoud Ahmadinejad. President Hassan Rouhani’s administration, in power for nine months, says bad debt in the banking system has reached a “critical” level – 15.6 percent. The authorities this week have handed the names of 575 of the biggest defaulters to the judiciary to try and recover some of the $33 billion owed. The list has not released but some believe the bulk may have been borrowed by as few as 100 people and firms. The bad debt may hamper Rouhani’s plans to boost employment and raise living standards. However, analysts also see positives in the new openness on the debt problem and moves to fix it.
Pakistan plans to sell more than $1bn of Islamic bonds after its first overseas debt sale in seven years boosted reserves. The dollar-denominated notes will be marketed at the end of the third or in the fourth quarter of 2014, Finance Minister Ishaq Dar said. Investor interest will determine the size of the offering which will be “much more” than $1bn and managers are yet to be appointed, he added. Dar said he expects investors from the Middle East, South Asia, Europe and the US. A successful conclusion to review talks with the IMF – which began in Dubai this week and will probably end on May 10 – will hopefully result in good pricing on the debt, he added. The sale is part of Prime Minister Nawaz Sharif’s plan to attract investment and overhaul the economy to meet conditions on a $6.6bn IMF loan.
Deputy Governor, State Bank of Pakistan, Saeed Ahmed has said that the SBP has evolved a comprehensive five-year strategy to promote Islamic mode of banking in the country. The SBP would strive to get 20 percent market share during this period which is 10 percent at the moment, he added. Moreover, the SBP is in regular contact with the Institution of Business Administration (IBA) in Karachi for the establishment of Centre of Excellence on Islamic Banking. He said as soon as the first centre will be established, three more such centres would also be established in Lahore, Islamabad and Karachi respectively. Besides, a lot of attention is focused on solutions, which are not far from the Islamic financing where system allows fairness of return, sharing of risk and reducing income inequalities.
Pak-Qatar Takaful Group recorded a strong growth with a combined turnover of Rs5.5bn ($54m) for the year ended December 31, 2013. The Group made a profit of Rs74m ($0.7m) during the year. Pak-Qatar Takaful Group, which comprises of Family Takaful and General Takaful, reviewed and approved the financial statements of Pak-Qatar Family Takaful and Pak-Qatar General Takaful for the year during the group's board meeting held recently in Doha. The company's paid-up capital is in excess of Rs710m, with credit rating of 'A' (Stable Outlook) by JCR-VIS Credit Rating Co Ltd.Pak-Qatar Family is recipient of several domestic and international awards and nominations.