Perusahaan Listrik Negara (PLN), Indonesia’s state-owned power producer, has issued securities worth IDR 1.877 trillion (USD 127.62 million). The issuance comprises of Sustainable Sukuk Ijarah IV PLN Phase I 2020 (Sukuk Ijarah) valued at IDR 376.5 billion, and PLN Continuous Bonds IV Phase I 2020 (Bond), with a principal amount of IDR 1.5 trillion. The issuances are part of PLN’s Sustainable Sukuk Ijarah targeting IDR 6 trillion and Continuous Bonds with a target fund of IDR 24 trillion, according to local m...

The State Bank of Pakistan (SBP) has announced the adoption of the Accounting and Auditing Organization for Islamic Financial Institutions' (AAOIFI) Shariah Standard No. 49 – Unilateral and Bilateral Promise (SS – 49) with immediate effect, in a circular issued on the 2nd of September 2020.  Addressed to all Islamic banks, Islamic banking subsidiaries and conventional banks with Islamic banking branches in Pakistan, the adoption of AAOIFI SS – 49 will further bolster the Shariah compliance framework and standardize Shariah practices in the...

The International Monetary Fund (IMF) has assessed Egypt's public debt as sustainable, but not with a high probability, according to a report issued on the 1st of September 2020. The IMF forecasted the level of public debt to exceed projections from previous fiscal years, with public debt expected to resume its decline from the 2021/22 fiscal year (FY). The primary surplus is anticipated to return to 2.0% of gross domestic product (GDP) within the same period. Egypt’s funding gap is anticipated at U...

Bank deposits in Saudi Arabia have increased by 3% year-on-year (YoY) to USD 496.5 billion in the second quarter of 2020 (2Q 2020), according to a report by KPMG, in spite of the rising constraints brought about by the COVID-19 pandemic to other parts of the banking system.  However, KPMG noted that the Saudi banking industry saw an average rise of 41.4% YoY in anticipated credit losses to USD 2.293 billion in the three-month period ended 30th of June 2020. Furthermore, overall bank profits declined 7.4% YoY to USD 5.504 billion in 2Q 2020.  Despite...

Indonesia's Consumer Price Index (CPI) fell to 1.32% in August 2020, the lowest recorded since May 2000, and well below Bank Indonesia's target inflation range of 2-4% for this year, declared Statistics Indonesia, locally known as Badan Pusat Statistik (BPS).  Head of BPS, Suhariyanto noted in a press briefing that the slowed core inflation and even deflation seen in many regional economies as a result of COVID-19's impact on both supply and demand showed that purchasing power has not yet recovered. Indonesia's core inflation in A...

In a statement issued on the 1st of September 2020, data from the Financial Markets Association Malaysia (FMAM) revealed that the Malaysian debt market (conventional bonds and Sukuk) has improved its performance year-to-date, compared to the same period a year ago.  The daily transacted volume of Ringgit-denominated government bonds and Sukuk came in at a solid MYR 5.0 billion year-to-date (YTD), which was higher than the MYR 4.2 billion recorded in the same period of 2019. Meanwhile, the monthly average traded volume of government bonds and Sukuk also remained robust,...

Kuwait Finance House’s (KFH) long-term Issuer Default Rating (IDR) has received affirmation at ‘A+’ by Fitch Ratings (Fitch), with a Stable Outlook.  The rating affirmation of KFH’s IDRs is based on the support provided by the Kuwaiti state, with a Support Rating (SR) of ‘1’ and Support Rating Floor (SRF) of ‘A+’, indicating a strong record of helping domestic banks if needed by Kuwaiti authorities. This is reflected by Kuwait’s sovereign rating (AA/Stable) and strong inclination to provide support irrespective of bank...

Bank Syariah Mandiri (Mandiri Syariah or the Bank) has announced the launch of its inaugural Waqf-linked Sukuk, known as Cash Waqf Linked Sukuk (CWLS), confirming the Bank’s role as a Shariah financial institution to receive cash Waqf.  According to Anton Sukarna, Distribution and Sales Director of Mandiri Syariah, CWLS is the inaugural Waqf Sukuk programme for the Bank and the first collaboration with the Indonesian Ministry of Finance (MoF) in collecting and distributing cash Waqf to uplift Indonesia’s econom...

Consumer spending in the United Arab Emirates (UAE) has risen by 63% in August 2020, compared to March 2020, in line with the easing of COVID-19 restrictions and resumption of economic activity, according to local media reports. Hotels, restaurants, as well as the apparel industry were the main beneficiaries of the relaxed restrictions. According to statistics from UAE’s Federal Competitiveness and Statistics Authority (FCSA), hotel spending increased by 29%, restaurant spending by 75% and apparel spending by 78% in August 2020 as compared to March 2020, w...

Malaysia’s exports, in terms of value, increased to MYR 92.5 billion in July 2020, from MYR 82.8 billion in June 2020, indicative that the economy was showing signs of recovery following its contraction in the second quarter of 2020 (2Q 2020), according to Kenanga Research.  Although Malaysia’s exports maintained positive growth for the second consecutive month, exports moderated in July 2020, showing a 3.1% year-on-year (YoY) increase, compared to an 8% YoY increase in June 2020. Kenanga Research noted that on a month-on-month basis, exports in Malaysia moderated...