The Chimera Standard & Poor’s United Arab Emirates (UAE) Shariah Exchange Traded Fund (Chimera S&P UAE Shariah ETF) was launched in the UAE by Chimera Capital, an asset management firm based in Abu Dhabi, UAE.  According to local media reports, the ETF will have two share classes that will track a Shariah-compliant index based on stocks listed on the main Exchanges in Abu Dhabi and Dubai, UAE. Class-A shares, which will be based on the Abu Dhabi Securities Exchange (ADX) will reinvest gains back into the fund, whilst Class-B shares will be listed on the Duba...

Emirates REIT, a Shariah-compliant real estate trust based out of Dubai, United Arab Emirates (UAE), stated it was considering delisting from Nasdaq Dubai in the wake of a decline in the UAE’s real estate sector, as well as poor equity market conditions. In a statement released on the 19th of July 2020, Emirates REIT stated that prevailing market conditions in the UAE’s public equity markets had led to a large gap between the fund’s share price and its true value, which was unwarranted.  Dubai’s real estate sector ha...

CIAF Leasing (CIAF), a joint-venture company in the aviation industry, has announced the cancellation of its plans to issue USD 50 million worth Sukuk, according to CIAF’s Chairperson, Salah Hashem. The decision was made following a consensus reached during CIAF’s General Assembly. Hashem stated that CIAF was currently in the process of restructuring its plans, and was seeking alternative financing tools (to Sukuk), in the development of CIAF’s financing requirements. According to media reports, CIAF had taken serious steps towards the offering of the USD 50 mil...

Egypt-based Sarwa Capital’s Managing Director, Ayman el Sawy, announced the planned issuance of a single-tranche corporate Sukuk worth EGP 2.5 billion. El Sawy noted that the prospectus has already been submitted to the Financial Regulatory Authority (FRA), and is pending approval. The Sukuk carries a term of seven years, and according to media reports, will be put on the market around four to six weeks post the Eid-ul-Adha holiday at the end of July 2020.  According to el Sawy, management has also started engaging in talks with potential arrangers and guaran...

S&P Global has affirmed its A- rating on Bank Islam Brunei Darussalam (BIBD), a rating which BIBD has maintained since 2015. S&P Global stated that the rating reflects BIBD’s strong market share and diversified portfolio in Brunei.  The rating also incorporates BIBD’s business position as the largest bank in Brunei, as well as its strong capitalisation. S&P Global noted that BIBD has a diversified deposit base and strong liquidity. The Stable Outlook reflects S&P Global’s view that BIBD will maintain its high level of systematic im...

PT Mora Telematics Indonesia (Moratelindo) has announced the planned issuance of IDR 277 billion in its Sukuk Ijara I Phase II/2020 (Sukuk Ijarah), with a total reward of IDR 29.74 billion. According to Moratelindo’s management, the Sukuk Ijarah will be offered in two series; Series A valued at IDR 191 billion carries a three-year tenure, whilst Series B, which matures in five years, has a total value of IDR 86 billion.  According to Moratelindo’s prospectus, 90% of the funds raised will go towards the expansion of Moratelindo’s backbone network and access, i...

As Malaysia prepares economic recovery strategies, the role of the public and private sectors within the country are being carefully relooked at to ensure greater involvement of the private sector in Malaysia’s road to recovery. According to Datuk Seri Mustapa Mohamed,  Minister in the Prime Minister’s Department (Economy), the economic plan which is set to be issued in October 2020 will provide guidelines for Malaysia’s long-term growth plans and sustainability, and address a number of reforms. In addition, under the reform process, the Government of Malaysia will also look int...

Bank Indonesia (BI)’s Senior Deputy Governor, Destry Damayanti, stated that Indonesia’s recovery from the global pandemic is anticipated to be slower than previously expected. BI added that the pandemic has taken a greater than expected toll on Indonesia’s economy as the number of cases continue on an upward trajectory, and is not yet expected to have reached its peak.  According to BI, the impact of COVID-19 threatens to cause a strong contraction in the second quarter of 2020 (Q2 2020), with Damayanti stating that the economy could shrin...

Fitch Ratings (Fitch) reported that global Sukuk issuance saw a rebound in May and June 2020, following the primary market shut down due to uncertainties caused by COVID-19. According to Fitch, Sukuk issuance with a maturity of more than 18 months from the Gulf Cooperation Council (GCC) region, Malaysia, Indonesia, Turkey and Pakistan amounted to USD 12 billion in the second quarter of 2020 (Q2 2020), up 42% quarter-on-quarter. Fitch also noted that the volume of outstanding Fitch-rated Sukuk totalled USD 114.5 bil...

The Malaysian Rating Corporation (MARC) has affirmed its ratings on Malaysia-based Cagamas’ conventional bonds, as well a Sukuk.  Cagamas’ Conventional and Islamic Commercial Papers programmes with a combined limit of MYR 20 billion have had its ratings affirmed at MARC-1/ MARC-1IS. Meanwhile, Conventional and Islamic Medium-Term Note programmes of up to MYR 60 billion have been affirmed at AAA/ AAAIS. MARC states that the ratings affirmation continues to...