Malaysian Rating Corporation (MARC) has affirmed SAJ Capital (SAJ Capital)’s AA-IS rating of up to MYR 650 million with a Stable Outlook. SAJ Capital, which was incorporated for Sukuk issuance purposes only, is fully owned by Ranhill Capital, which has an 80% interest in Ranhill SAJ (RSAJ), the only water treatment operator and distributor in Johor, Malaysia.  According to the IslamicMarkets Sukuk Monitor, SAJ Capital is reliant on dividends from RSAJ to repay its Sukuk; therefore its affirmed rating relies on the credit strength o...

DP World, a port operator based in Dubai, United Arab Emirates (UAE) has sold USD 1.5 billion in perpetual Sukuk at 6.125%, according to a document revealed to media. DP World will utilise the proceeds of the Sukuk for general corporate purposes such as refinancing debt. The port operator, which received over USD 3.8 billion in orders for the Sukuk sale, had to tighten the yield after commencing marketing at 6.625% on the 24th of June 2020. According to media reports, the company was initially hoping to raise between USD 500 million and USD 750 million, but ...

RAM Ratings (RAM) has reaffirmed the rating of Sepangar Bay Power (Sepangar)’s MYR 575 million Sukuk Murabahah at AA1/Stable. Sepangar is the owner and operator of a 100 MW combined cycle gas turbine power plant in Sabah. The Company has a 21-year Power Purchase Agreement (PPA) with Sabah Electricity (SESB) over August 2008 to August 2029. RAM’s rating affirmation reflects Sepangar’s strong ability to service its debt, supported by its long-term agreement with SESB. The plant in Sabah has performed well since 2015, gran...

According to the International Monetary Fund (IMF) Indonesia’s 2020 gross domestic product is expected to decline 0.3% year-over-year (YoY) as indicated in the June 2020 update of the IMF’s World Economic Outlook. The IMF noted that in countries like Indonesia, with high shares of informal employment, movement restrictions imposed to contain the spread of COVID-19 led to sudden income losses and unemployment for workers. Data from Indonesia’s Ministry of Manpower reveals that 3.06 million Indonesians had bee...

The International Monetary Fund (IMF) is now predicting Malaysia’s 2020 gross domestic product (GDP) to contract 3.8% year-over-year (YoY), down from its previous estimate of a 1.7% YoY contraction. The forecast revision comes on the back of the worse than anticipated negative impacts caused by COVID-19 globally in the first half of 2020.  In its June 2020 World Economic Outlook Update, the IMF projects global growth at -4.9% for 2020, down 1.9 percentage points from its April 2020 estimate. The IMF expects the global economy to recover in 2021 and has forecast...

Malaysia’s MYR securities market expanded 2.9% quarter-on-quarter (QoQ) in Q1 2020 to MYR 1.5 trillion as both government and corporate securities grew during COVID-19, according to Asian Development Bank (ADB)’s latest issue of Asia Bond Monitor report. ADB stated that total outstanding Sukuk in Malaysia increased 3.1% QoQ to MYR 966.7 billion as at end-March 2020. Outstanding government securities, which made up 52.6% of Malaysia’s overall MYR securities rose 3.9% QoQ to reach MYR 795.9 billion (USD 186 billion), whilst corporate securitie...

Qatar’s Government agencies are committed to supporting the United States of America (US)-based investment in the Middle East, and making Qatar a fintech hub for the region, according to Fahad Al Dosari, Commercial Attaché for the Embassy of Qatar in the US. Speaking at a recent virtual panel discussion covering Qatar’s evolving fintech sector and related business opportunities, Al Dosari stated that Qatar was one of the world’s most stable economies and offered robust incentives for US-based companies including 20-year tax...

Malaysia’s economy is expected to contract 3.1% year-over-year (YoY) in 2020 due to the economic slowdown caused by the COVID-19 pandemic, according to the latest edition of the World Bank (WB)’s Malaysia Economic Monitor report released on the 25th of June 2020. However, the WB projects the country to rebound in 2021 with 6.9% YoY growth as the outbreak eases. According to the WB, aggregate investment contracted by 4.6% YoY in the first quarter of 2020 compared to 0.7% YoY contraction in the previous...

Fitch Ratings (Fitch) has affirmed the Long-Term Issuer Default Rating (IDR) of the United Arab Emirates (UAE) based Abu Dhabi Islamic Bank (ADIB) at AB+, with a Viability Rating (VR) of bb and a Stable Outlook. Key ratings drivers supporting the affirmation of the long-term IDR, Support Rating (SR) and Support Rating Floor (SRF) include the fact that ADIB is likely to receive support from the Government of the UAE and Abu Dhabi if needed, with this financing being sourced through sovereign wealth funds, as well as recurring revenue from hydrocarbon production, despite th...

The Bangko Sentral ng Pilipinas (BSP), the Central Bank of the Philippines has identified insufficient Shariah academics or Islamic finance professionals and lack of tax neutrality as key issues in implementing Islamic banking in the Philippines. According to the BSP, the main obstacle is the poor knowledge and capacity on Islamic banking and finance for regulators, industry participants as well as other stakeholders. In order to overcome this, the BSP has initiated measures such as introducing Frequently Asked Questions in Islamic banking.  In...