Malaysian Rating Corporation (MARC) has affirmed the rating of Projek Lintasan Sungai Besi-Ulu Klang’s (PLSUKE)’s Sukuk Wakalah Programme (Sukuk Wakalah) of up to MYR 2.0 billion at A+is(s), while revising its outlook to Stable from Negative.  The prior Negative outlook, which reflected a potential delay in construction of the company’s Sungai Besi-Ulu Kelang Elevated Expressway (SUKE) project, and the impact on the credit profiles of PLSUKE and its immediate p...

Tropicana Corporation (Tropicana), a Malaysian residential property managers company, has announced the issuance of a MYR 100 million Sukuk, as part of its MYR 1.5 billion Sukuk Wakalah programme, according to a bourse filing released on the 3rd of September 2020.  According to the filing, proceeds of the issuance will be used to pay off existing funding and borrowings to facilitate the secured properties, as well as cover funding costs of the issuance of the Sukuk and the Sukuk Wakalah programme. Tropicana stated that the proceeds...

In a report published on the 2nd of September 2020, Moody’s Investors Service (Moody’s) has maintained Egypt’s credit rating at B2, with a Stable Outlook. Moody’s noted that it has maintained this rating and outlook for Egypt since April 2020.  According to Moody’s, Egypt’s credit profile is backed by its sizeable and diversified economy, a large domestic funding base, as well as sufficient projected foreign exchange reserves to meet external liabilities maturing over the next three years. Added to this, Egypt also has relatively low levels...

Turkey's inflation rate in August 2020 was recorded at 11.77% year-on-year (YoY), slightly up from 11.76% YoY in July 2020, according to a recent announcement by the Turkish Statistical SInstitute (TurkStat), the country’s national statistical body. This was slightly lower than was projected by a Reuters poll (11.91% YoY) and the Anadolu Agency's (AA) panel of economists (11.88% YoY).  Miscellaneous goods and services saw the highest price increase in August 2020, at 26.99% YoY, followed by health-related goods and services at 14.68% YoY, and foo...

Brunei Darussalam's (Brunei) economic recovery of 2019 is expected to continue into 2020, despite the COVID-19 crisis leading to a sharp global downturn, according to the ASEAN+3 Macroeconomic Research Office (AMRO). AMRO's 2019 Annual Consultation Report on Brunei released on the 31st of August 2020 stated that the country's gross domestic product (GDP), which had grown by 3.9% in 2019, would continue to expand by 2.2% in 2020, due in large part to the commencement of Chinese refiner Hengyi Industries’ (Hengyi) production operations. Consid...

Indonesia’s Finance Minister, Sri Mulyani Indrawati, stated that the economy could remain “sluggish” until the second half of 2021, by which time a COVID-19 vaccine is anticipated to be on the market.  Indrawati added that COVID-19 is the key factor anticipated to hold back domestic consumption spending, investments as well as the global economic recovery. According to Indrawati, getting COVID-19 under control, together with structural reforms to attract investments and fiscal support, remain the core determinants of Indonesia’s economic...

The Government of Dubai, in the United Arab Emirates, has officially announced the successful completion of a USD 1 billion Sukuk issuance, with a 10-year maturity period at a profit rate of 2.763%, as well as a USD 1 billion government bonds issuance, with a 30-year maturity period at an interest rate of 3.90%.  Director General of Dubai's Department of Finance (DOF), Abdulrahman Saleh Al Saleh stated that the DOF had been able to procure the lowest profit rate for the 10-year Sukuk as well as the lowest interest rate for the 30-year Government bonds ever recorded by...

Global Sukuk issuances have declined 9.1% year-on-year (YoY) to a total issuance value of USD 65.6 billion in the first half of 2020 (1H 2020), from USD 72.1 billion reported in 1H 2019, according to a recent report released by RAM Ratings (RAM).  Although a slow performance was anticipated by the global Sukuk market in 2020, sovereigns and corporates made use of low interest rates to secure affordable funding, propped by a boost in COVID-19 related stimulus packages and lower yields, RAM stated. The decline in global Sukuk issuance was attributed to...

The Sustainable Development Goals and Paris Agreement rely on the world making USD 6 trillion in infrastructure investment every year, funds which are difficult to channel into infrastructureHigh investment sizes, illiquid markets and a complex web of contracts limit infrastructure investment to only the largest institutional investorsFasset has launched a blockchain-powered platform to increase liquidity and expand the investor base for infrastructure by digitizing real assetsInfrastructure financing has been a consistent focus with estimates for the need running about USD 90 trillion over 15...

RAM Ratings (RAM) has assigned the MYR 260 million ASEAN Green SRI Sukuk (2020/2038) proposed by Solar Management (Seremban) Sdn Bhd (SMS) a preliminary AA3 rating, with a Stable Outlook.  Under a 21-year Power Purchase Agreement (PPA) with Tenaga Nasional, SMS has been contracted to build, operate and maintain a 50 MWac solar power plant (the Plant) in Rembau, Negeri Sembilan, Malaysia, which commenced commercial operations on the 30th of January 2019.  The favourable terms of the PPA has underpinned SMS’s healthy proj...