Maqhasid Sharia: Measurement of the Purpose of Islamic Banks in Indonesia with Sharia Compliance as a Moderating VariableIslamic banking, Maqasid, Shariah, Zakat

Blockchain as an Enabler for Impact Finance; Case Study: Blossom FinanceSukuk, Ummah

CIBAFI survey highlights how much Islamic banks are moving from ‘digitisation’ to find new ‘FinTech solutions’As Islamic banks look into what their future customer, regulatory and investor expectations will include, responsible finance is cross-cutting across many areasResponsible finance isn’t something to ‘add’ onto traditional concerns about technology, risk management or shareholder expectations; it is integral to all of them Before Covid-19, Islamic banks faced a technological transformation which had already been challenging for them. Th...

Gas Malaysia’s wholly-owned subsidiary Gas Malaysia Distribution (GMD) has established Islamic Medium-Term Notes (IMTN) and Islamic Commercial Paper (ICP) programmes, according to local media reports.  In a filing with Bursa Malaysia, the company stated that both IMTN and ICP programmes will have a nominal value of MYR 1 billion each, with a combined issuance limit of up to MYR 1 billion under the Shariah principle of Murabahah. The IMTN will have a tenor of 15 years, while the ICP will have a seven-year tenor from the date of...

RAM Rating Services (RAM) has reaffirmed Bank Muamalat Malaysia’s (BMMB or the Bank) financial institution ratings as A2/P1 with a Stable Outlook. In addition, BMMB’s MYR 1 billion subordinated Sukuk Murabahah Programme (2016/2036) has been reaffirmed as A3/Stable by RAM.  The financial institution ratings are based on BMMB’s robust capitalisation, which provides a strong buffer against a foreseen increase in defaults arising from the COVID-19 pandemic, despite the financial relief provided to affected borrowe...

RAM Rating Services (RAM) has upgraded the rating of Widad Capital’s Sukuk Murabahah of up to MYR 110 million to AA1 from AA2. The rating agency has also revised the rating outlook to stable, from positive.  The rating is based on Widad Capital’s robust ability to service debt as well as its healthy operating performance, supported by regular monthly contract payments from Malaysia’s Public Works Department (PWD), under the facilities maintenance contract for the National Palace of Malaysia. RAM’s upgrade of the rating is furthe...

Indonesian oil and gas issuer PT Elnusa (Elnusa) is in the process of conducting its Sustainable Public Offering of its Sukuk Ijarah I Phase I of 2020 (Sukuk Ijarah). With a maximum compensation of IDR 700 billion, the initial Sukuk book-building will take place on the 7th of August 2020, with the allotment on the 10th of August 2020, and estimated listing on the Indonesia Stock Exchange on the 12th of August 2020, according to local media reports.  The offering is part of Elnusa’s Sustainable Sukuk Ijarah I with a target fund of I...

The United Arab Emirates (UAE) is set to deliver a three-stage flexible stimulus package, including 33 initiatives, covering all sectors and economic activities, in a bid to stimulate the economy. The plan aims to focus on supporting the labour market and encouraging investment into the UAE. Using the best technology at hand and guided by the leadership’s vision for the future, the flexible plan will ensure the sustainability of core economic sectors in the UAE, the expansion of emerging sectors, as well as the creation of new sectors.  Abdullah Bin Touq Al Marri, ...

Moody’s Investors Services (Moody’s) is expecting global Sukuk issuance to contract by 5% to approximately USD 170 billion in 2020, due to the COVID-19 pandemic, following four years of rapid growth.  According to a report announcement released by the ratings company, the total issuance in the first half of 2020 declined by 12% to USD 77 billion, compared to the same period last year, following a drop in activity from Malaysia and Indonesia. Meanwhile, issuance volumes in southeast Asia declined by 25...

Fitch Ratings (Fitch) has assigned a National Long-Term Rating of ‘AAA(idn)’ to Bussan Auto Finance’s (BAF) Sukuk programme of up to IDR 500 billion, as well as to the first-phase issuance of the aforementioned Sukuk programme of up to IDR 15 billion with a three year maturity. The Sukuk is rated the same as BAF’s National Long-Term Rating, as Fitch expects the issuances to represent BAF’s direct and senior obligations.  BAF is a captive financing company that mostly handles new motorcycle financing for Yamaha-brand motorcycles in Indonesia. Fitch&rsqu...