The All Pakistan Meat Processors and Exporters Association (APMPEA) has urged the Government of Pakistan to step up efforts to enhance the export of Halal meat to a wider market.  According to APMPEA Chairman, Nasib Ahmad Saifi, countries such as China, Turkey, Malaysia, Indonesia and Central Asian States which have large populations, and are deemed as heavy consumers and importers of meat and meat products, should be targeted as potential export partners, instead of solely focusing on Arab countries.  Sai...

Indonesia’s Finance Ministry announced that state revenue earned in the first eight months of 2020, reached IDR 1.028 quadrillion (approximately USD 69.5 billion) in August 2020, reflecting 60.2% of the amended state budget.  According to the Deputy Finance Minister, Suahasil Nazara, this was lower than the IDR 1.189 quadrillion recorded during the same period of 2019, which represented 54.9% of the target for 2019.  Nazara stated that Indonesia’s debt-to-gross domestic product (debt-to-GDP) ratio stood at 34.53% at the end of August 2020,&nbs...

The Government of Indonesia announced plans to expand its on-going business assistance programme to include around 3 million more micro small and medium enterprises (MSMEs) impacted by COVID-19. According to the Cooperatives and SME Minister, Teten Masduki, given the strong interest amongst the MSME sector (which forms the backbone of the country, accounting for over 60% of gross domestic product), the Government is now confident of assisting up to 15 million MSMEs by mid-December 2020, up from its initial tar...

Examining the Determinant Factors on Consumer Switching Intention Toward Islamic Bank in Central Java, IndonesiaHalal, Islam, Islamic banking, Riba

The role of the financial services sector in fostering the transition to a more sustainable economy, in the post-pandemic world, was highlighted during a town hall session, hosted by Islamic Banking & Finance Institute Malaysia (IBFIM) and supported by Bank Negara Malaysia (BNM).The session, held on 10th September and titled the Value-based Intermediation Financing and Investment Impact Assessment Framework (VBIAF) Sectoral Guides, featured a briefing on three Sectoral Guides covering Palm Oil, Renewable Energy and Energy Efficiency, which were issued by the VBIAF Sectoral Guide Working...

Sustainable Growth and Finance from Islamic Perspective

Saudi Electric Company (SEC)’s Green Sukuk has been assigned a rating of A-(EXP) by Fitch Ratings (Fitch). This expected rating is in line with and mainly driven by SEC’s Senior Unsecured and Long-Term Issuer Default Rating (IDR) of A-. The Sukuk will be issued via Saudi Electricity Global SUKUK Company 5 (the Issuer).  Fitch states that a default on SEC’s senior unsecured obligations would reflect a default of SEC, as the Issuer’s ability to meet payments due on the Sukuk will depend on SEC adhering to its unsecured p...

In a Tadawul filing on the 10th of September 2020, Saudi Electricity Company (SEC) announced its issuance of US-denominated fixed-rate RegS, Senior Unsecured International Green Sukuk.  The Sukuk, which have maturity periods of five and ten years, are aimed at institutional investors, with a minimum subscription limit of USD 200,000, its value based on market conditions.  HSBC and MUFG have been appointed as green structuring advisors for the issuance, whilst First Abu Dhabi Bank, JP Morgan and Standard Chartered Bank are joint lead managers. According to the...

National Central Cooling Company (Tabreed), a United Arab Emirates-based regional energy solutions provider, has announced the successful syndication of its landmark financing facility, valued at USD 692 million.  The financing facility, which has a 5-year tenure maturing in March 2025, was structured as a multi-tranche syndicated facility with a combination of Sukuk and conventional tranches. The facility was over-subscribed by nine banks, according to media reports, with over 40% of subscriptions done by regional and international banks.  The finan...

RAM Ratings (RAM) has reaffirmed the rating of Jati Cakerawala’s (Jati) MYR 540 million Sukuk Murabahah (2013/2023) at A1/Stable.  Jati, a Malaysian-based investment holding company, relies solely on cash flow from dividend distributions of its subsidiary Teknologi Tenaga Perlis Consortium (TTPC), an independent power producer that owns and operates a 650 MW gas turbine power plant in Perlis, Malaysia.  TTPC’s laudable operational key performance indicators and ability to generate cash flow is&...