Malaysian corporate Sukuk in the current COVID-19 crisis are faring better than during the global financial crisis or the Asian financial crisis, according to Malaysian Rating Corporation’s (MARC) Chief Ratings Officer, Rajan Paramesran.  Speaking at a recent webinar on the impact of COVID-19 on Islamic Finance in Malaysia, Paramesran stated that corporate Sukuk had relatively stable cashflow metrics, giving leeway to absorb immediate performance weakness without affecting their credit risk profiles. However, the ability of corporates to be able to withsta...

Tenaga Nasional Berhad (TNB), Malaysia’s power utility company, has issued Sukuk Wakalah amounting to MYR 3 billion in three tranches, as part of its MYR 10 billion Islamic medium-term notes programme originally announced on the 30th of June, 2020.  Due to strong demand from local and foreign investors, the Sukuk, which was originally sized as MYR 2 billion, was oversubscribed by nearly four times with book-building orders amounting to MYR 7.82 billion from 41 accounts. As a result, the transactio...

Acting as sole principal adviser and lead adviser, HSBC Amanah Malaysia (HSBC Amanah) is arranging Leader Energy’s inaugural Association of Southeast Asian Nations (ASEAN) Green Sustainable and Responsible Investment (SRI) Sukuk worth MYR 260 million, according to local media reports.  Leader Energy is an investment holding company based in Penang, Malaysia under HNG Capital Group (HNG Capital), which focuses on renewable power generation. The ASEAN Green SRI Sukuk, which is Leader Energy’s first issuance...

Moody’s Corporation (Moody’s), the global integrated risk assessment firm, has acquired a minority stake in Malaysian Rating Corporation (MARC), a credit rating agency based in Malaysia that covers domestic bond and Sukuk markets.  According to a statement released by Moody’s, the investment will reinforce Moody’s presence in Malaysia, which is the world’s largest Sukuk market, global Islamic finance hub, and a prominent market within the Association of Southeast Asian Nations (ASEAN). Wendy Cheong, Managing Director and Head of Moody&rs...

Moody’s Investor Services (Moody’s) has affirmed Axiata Group’s (Axiata) Baa2 issuer rating with a Stable Outlook. The affirmation also includes the Baa2 senior unsecured rating on Axiata’s existing USD 500 million Sukuk notes, as well as the provisional (P)Baa2 rating of the Group’s wholly-owned Axiata SPV2’s Sukuk issuance programme.  Concurrently, the ratings agency has also assigned a Baa2 rating to the proposed USD 500 million drawdown of Axiata SPV2’s Sukuk issuance programme, as well as a provisional (P)Baa2 rating to...

Malaysian banks have sufficient capital buffer to extend the targeted moratorium period from October to December 2020 as announced by the Government of Malaysia, according to Malaysian Deputy Finance Minister I, Datuk Abdul Rahim Bakri.   Speaking at the Dewan Rakyat on the 12th of August, 2020, Abdul Rahim stated that a total of MYR 66 billion out of the allocated MYR 100 billion had been used by banks for moratorium assistance under the economic stimulus packages. Abdul Rahim added that each moratorium extension decision by the Government w...

The development of Indonesia’s Shariah-compliant economy and finance requires advancements in digital technology, according to Ma’ruf Amin, Indonesian Vice President. Speaking at the Indonesia Shariah Economic Festival (ISEF) launch held virtually on the 7th of August 2020, Ma’ruf emphasized the need for Shariah economic players to adjust to the accelerated shift towards all-digital platforms and services in the wake of the COVID-19 pandemic, adding that digital technology and online payment facilities were ‘absolutely necessary&r...

Lack of data on where climate finance could align with Islamic finance has inhibited a focus on climate finance outside of major Islamic finance marketsThe first set of disclosures that include data from the Islamic Development Bank offers a glimpse of where climate finance could enhance Islamic financeThe shortfall in global climate finance below what is needed to meet Paris Agreement targets and make countries more resilient to the impacts of climate change opens up new opportunities for targeted financing by Islamic banks The Islamic Development Bank has for the first time been inc...

Malaysia-based Duopharma Biotech (DB) announced that it will be focusing on the expansion of its Halal portfolio, targeting a higher level of exports (currently contributing 8% of total revenue) to nations with large Muslim populations, such as Indonesia, the Philippines and Thailand, in the Association of Southeast Asian Nations (ASEAN) region. At present, DB exports to 27 countries, including nations in Africa and the Middle East. According to the Group Managing Director of DB, Leonard Ariff Abdul Shatar, this strategy aims to cap...

The International Islamic Liquidity Management (IILM) announced the successful completion of an auction for the issuance of A1-rated short-term Sukuk worth USD 1.06 billion. According to IILM, the Sukuk was oversubscribed by 0.62 times, with an order book that came in at over USD 1.72 billion. The Sukuk was issued in three series: a USD 400 million issuance with a one-month tenure and a profit rate of 0.33%, a USD 460 million three-month tenure carrying a profit rate of 0.45%, and a seven-month issuance worth USD 200 million, carrying a profit rate of 0.58%...