CPI Financial

Noor Islamic Bank launches Business Instalment Finance for SMEs

According to an announcement by Noor Islamic Bank, the bank will launch its new product Business Instalment Finance. This new package will serve to cater to the financial requirements of small businesses. Small businesses which already have a business relationship with Noor Islamic Bank will have access to loans at competitive profit rates. Part of the new package is fixed-term financing of up to AED 750,000 for 48 months. Documentation and the processing time will be held at minimum.

Moody's assigns Ba1 IFS rating to T'azur Takaful Insurance Company

Kuwaiti T'azur Takaful Insurance Company has been assigned a first-time Ba1 insurance financial strength rating (IFSR) with a stable rating outlook by Moody's Investors Service. The rating is a reflection of the company's good market position within the domestic Takaful market. Its market share is about 8% which puts the company on the 5th position in terms of Takaful contributions. In the last two years T'azur has been growing rapidly - with growth rates of 44% in average.

Tadhamon International Islamic Bank downgraded by CI

The Financial Strength Rating of Tadhamon International Islamic Bank (TIIB) has been downgraded to 'b+' from 'BB-' by Capital Intelligence (CI). The downward change of the rating reflects the deterioration in TIIB's financial profile. The ratings of TIIB's Long- and Short-Term Foreign Currency are 'b-' and 'c' respectively. Weakening asset quality and a subsequent large provision charge were the reason why the bank recorded a loss last year.

Cagamas unveils multi-tenured Sukuk and conventional debt

The Malaysian National Mortgage Corporation - Cagamas - has made an announcement about the issuance of its MYR 125 million multi-tenured debt securities comprising Sukuk Commodity Murabahah and Conventional Medium Term Notes (CMTNs) of MYR 90 million and MYR 35 million respectively. The issuance will be carried out in benchmark 3, 5, 7, 10, 12 and 15-year tenures. The respective yields are 3.35%, 3.50%, 3.75%, 3.90%, 4.00% and 4.14%. They are also equivalent to a 31 basis points to 45 basis points range above comparable Malaysia Government Securities (MGS). Proceeds will be used for the purchase of Islamic as well as conventional housing loans from the financial system.

International conference on Islamic finance begins in Casablanca

While the government of Morocco is working on a framework to introduce Islamic finance to the country, an international conference on Islamic finance takes place in Casablanca. Starting on November 29th, insurers, bankers and heads of financial institutions from various countries currently involved or intending to engage in Islamic finance, will take part in the conference. Among the participating countries are Tunisia, the UAE, Malaysia, Bahrain, France and Luxembourg.

Weqaya Takaful issued BBB credit rating

Weqaya Takaful Insurance & Reinsurance was assigned a BBB credit rating with a stable outlook by Standard & Poor's. Thus, its rating has been reaffirmed. The rating is based on continuous regular surveillance of the company's performance for the second year in a row by the rating agency. It is a reflection of Weqaya's competitive position and strong capitalisation.

Sukuk fund outlook from Rasmala

Last month, the dominant tone in Rasmala was one of "risk on" due to fluctuations in $ interest rates which had little bearing on Sukuk pricing in the region. The nervousness in the international market only led to a brief halt in the local market followed by soldiering on as soon as positive sentiment returned. The striving for yield continued at a quick pace. This is evident by the strong performance of some yielding names in the conventional space which were previously unloved but higher. An example of such yielding names is Dubai Holdings 14s and 17s which reached an increase of more than 2% and 3% respectively on the month.

World's first Basel III Tier 1 Sukuk may boost supply - Fitch

Fitch Ratings claims that after Abu Dhabi Islamic Bank's (ADIB) hybrid Tier 1 Sukuk further UAE banks are likely to follow their example and issue Basel III-compliant bonds. Both conventional and Shari’ah-compliant banks are expected to issue Tier 1 products in the coming year. Fitch also noted that relatively high levels of capital are a necessity for banks in the Gulf region in order to deal with the difficulties in the operating environment. Moreover, hybrid Tier 1 instruments are believed to be a cost-effective means of accessing a wider investor base.

KFH-Bahrain & Tamkeen launch SMEs Islamic finance programme

A strategic agreement aiming to provide financial means for small and medium enterprises (SMEs) was signed by Kuwait Finance House - Bahrain (KFH-Bahrain) and Tamkeen. The agreement says that companies in Bahrain will have access to low-cost Islamic financing solutions which will be provided by KFH-Bahrain. Tamkeen will be providing 50% subsidy in order to help these companies to obtain the necessary funds for their development. According to Mr. Mahmood Hashem Al-Kooheji, Chief Executive of Tamkeen, the Enterprise Financing Programme is crucial institutionalising the concept of SME lending in the country and it is also contributing to the expansion of the customer base of Tamkeen's partner banks in this programme.

Tilal seeks CMA approval for Oman’s first Sukuk

Omani real estate firm Tilal Development Company has persistently been asking the Capital Market Authority (CMA) for approval to raise funds by issuing a sukuk. According to Abdullah bin Salem Al Salmi - executive president of CMA - as soon as Tilal are ready with a plan, CMA are ready to grant them approval for raising money by means of sukuk. Currently, the next step is for Tilal to submit a formal application for the issue. CMA are encouraging companies to float sukuk issues. The only thing necessary for bringing regulation for sukuk is a minor amendment in the Capital Market Law.

KFH-Research: Volume of Sukuk to end-October $112 billion

According to a report by KFH-Research, the Sukuk market in October demonstrated a month-on-month decline in terms of issuance of 24.5% to $8.8 billion. However, compared to last year, these figures show an increase of 61.3%. Sukuk issuance in the first ten months of 2012 totaled $112 billion, which is 59.4% higher than the corresponding period last year. It is even already 31.5% higher than the overall issuance in 2011. The expectations for the current year are for the issuance to reach $130 billion.

Strong growth predicted in IT spending by GCC's Islamic finance industry

The total IT spending in the Islamic banking sector in the Gulf countries reached $400 million in 2011. Notable growth in the following years is expected. The financial crisis since 2008 has hit the Islamic financial sector as well, causing consolidation of institutions, merging of banks etc. Even though Islamic banks have remained on a positive financial footing during the post-crisis period in comparison with conventional banks, the former have had problems with profitability due to rising costs and operational inefficiencies. In order to optimize current infrastructure, banks invest in one major technology area - implementation and adoption of cutting-edge software and IT services.

ICD to open two new Islamic banks in Africa

The Islamic Corporation for the Development of the Private Sector (ICD) considers opening two new Islamic banks in the countroes of Mali and Benin in the coming year. This was announced by the CEO of the ICD - H.E. Khaled Mohammed Al-Aboodi - at the Islamic Banking Summit Africa in Djibouti. This way, Islamic financial services can be provided in a greatly underserved area. Furthermore, the corporation intends to issue a $200 million Sukuk which is to serve the Government of Senegal to provide liquid Islamic products for Islamic banks.

Al-Takaful Palestinian Insurance Co. nine month profit soars 237 per cent

Palestinian insurance company Al-Takaful registered net profit before taxes as high as $586,503 for the first nine months of the year. This is a 237% increase compared to the same period last year, when the net profit before taxes reached only $174,024. Al-Takaful's total assets reached $19,186,332 by the end of September this year - 8.8% more than for the whole of 2011. The total liabilities show an increase of 13.2% from $9,176,092 last year to $10,389,322 this year.

Read more on: http://www.cpifinancial.net/news/post/16473/al-takaful-palestinian-insur...

International Islamic Liquidity Management Corp (IILM) names new Chief Executive

The new Chief Executive of International Islamic Liquidity Management Corp (IILM) wasrecently made known by the company. Professor Datuk Rifaat Ahmed Abdel Karim comes to replace Mahmoud Abu Shamma. Before that, Professor Datuk Rifaat served as inaugural Secretary General for both the Accounting & Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Islamic Financial Services Board (IFSB). Moreover, he was involved in the establishment of the IILM in October 2010.

Read more on: http://www.cpifinancial.net/news/post/16361/international-islamic-liquid...

Islamic microfinance ‘good alternative’ for alleviation of poverty

Conventional microfinance has proven ineffective in alleviating poverty. Islamic finance is suggested as a better alternative. Relevant to the World Poverty Day, a seminar concerning the global issues of poverty and its solutions was held in Lahore. The event was organised by AlHuda Centre of Islamic Banking and Economics. Participants came from different financial areas such as Microfinance, Islamic Microfinance and the Banking sector. Leading topics of the seminar were issues related to poverty, current situation of poverty, socio-economic issues due to poverty and the strategies for the solution.

Read more on: http://www.cpifinancial.net/news/post/16341/islamic-microfinance-good-al...

Gatehouse advises Malaysia’s SWF on first UK real estate investment

Cooperating with Malaysia's Sovereign Wealth Fund (SWF), Gatehouse Bank has executed the GBP 165 million acquisition of the law firm SJ Berwin’s offices in London. The role of Gatehouse was Investment and Shari’ah Adviser. The deal is the first real estate investment of the Malaysian client and is essential for its wider global investment strategy. According to Chief Executive Officer of Gatehouse Bank Richard Thomas, this investment is a great example of international co-operation and demonstrates how funds can be mobilised around the world complying with the principles of Shariah.

Read more on: http://www.cpifinancial.net/news/post/16102/gatehouse-advises-malaysias-...

Al Jazira Bank Q3 profit up 97 per cent on year ago levels

Al Jazira Bank has registered net income of SAR 130 million during the third quarter of the year. This is an increase of 97% in comparison with the net income SAR 66 million for the same period last year. Compared to the second quarter of 2012, there is an increase of 1% from SAR 129 million. The difference between the total operating income during the third quarter this year and the same period in 2011 is 33% in favour of Q3 2012.

Read more on: http://www.cpifinancial.net/news/post/16209/al-jazira-bank-q3-profit-up-...

Barwa Bank launches new Islamic product for SMEs

Qatari Barwa Bank has launched a new Islamic product which is to support SMEs - Qotof. This is a suite of financial packages which serves to assist local corporations to achieve their business objectives and, at the same time, to save money. Until now, the products included in the package had been sold separately. By putting the m together in one product, the costs can be held lower and encourage businesses to take advantage of the offer.

Read more on: http://www.cpifinancial.net/news/post/16260/barwa-bank-launches-new-isla...

IDB launches renewable energy fund

The Islamic Development Bank (IDB) is looking for new investments for farming projects in Kazakhstan through its $600 million agribusiness fund. Gulf countries offer capital but they do not have agricultural resources, while there are countries like Kazakhstan, which - on the contrary - have the resources but not the capital, said the chief executive of IDB. There are also opportunities in the sector of renewable energy, which is why IDB considers new investments into solar and wind projects that is not paid enough attention to.

See more under: http://www.cpifinancial.net/news/post/15954/idb-launches-renewable-energ...

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