Malaysian Rating Corporation (MARC) has assigned a final rating of AA-IS with a Stable Outlook for the proposed MYR 1.9 billion Sukuk Murabahah program of Malaysian port operator, Pelabuhan Tanjung Pelepas (PTP). Proceeds from the proposed Sukuk will mainly be used to refinance PTP’s existing government-guaranteed MYR 1.5 billion IMTNs maturing in September 2020, as well as other existing debts. With no change from its preliminary rating, the final rating was based on PTP’s strong market position as a key transshipment port in the region as well...

RAM Ratings (RAM) has announced its withdrawal of the A1/Stable rating of TF Varlik Kiralama (TF Varlik)’s MYR 3 billion Sukuk Murabahah Medium-Term Notes (MTN) Programme (2014/2034).  The withdrawal was announced upon RAM receiving confirmation that TF Varlik had fully redeemed its outstanding Sukuk and subsequently cancelled the program on the 21st of May 2020. The ratings agency further stated that it no longer has any rating obligations to the Sukuk. TF Varlik was incorporated as a fully owned asset leasing company of Tu...

The Islamic Religious Council of Singapore (Muis) has contested several articles published in various foreign media alleging corruption, stating that it has not been approached by the Corrupt Practices Investigation Bureau (CPIB), a Government agency in Singapore, regarding any investigations. According to a public statement released at the end of May 2020, Muis emphasized the integrity of its halal certification process, adding that it was reviewing the complaints, and if any wrongdoing by its officers was discovered, appropriate and timely actio...

So far in 2020, the United Arab Emirates’ (UAE) Zakat Fund has provided USD 23.5 million (AED 86.3 million) in financial assistance to 5,109 eligible families that have been impacted by the COVID-19 pandemic, according to local media.   Out of the 2,764 families in the UAE which have been affected by the pandemic, 93.3% were eligible for Zakat, a pillar of Islam that requires Muslims to donate a proportion of wealth to charity annually. According to Abdullah bin Aqeedah Al Muhairi, Secretary-General of the Zakat Fund, the fund received close to 5,50...

According to the results of a survey conducted by the recruitment company JobStreet in May 2020, up to 20% of respondents in Malaysia who were previously employed have lost their jobs due to the COVID-19 pandemic. The survey, which involved 5,000 participants, also showed that over two million Malaysians were expected to lose their jobs. Gan Bock Herm, JobStreet’s Malaysia Manager, stated that 35% of Malaysian employees saw a decrease of over 30% of their salary during the movement control order (MCO) period. Herm also added that more than h...

The Islamic Development Bank Group (IsDB) has pledged USD 100 million to Yemen over 2020-2023, according to a statement released by the IsDB. This comprises funding for development assistance, and includes USD 36.6 million to support the Government of Yemen’s efforts to fight the COVID-19 pandemic.  The announcement was made at a virtual pledging event hosted by the Government of Saudi Arabia during a United Nations (UN) virtual conference to help raise funds for the on-going humanitarian crisis, including fighting COVID-19, in Yemen.&n...

Sharjah, United Arab Emirates (UAE), sold USD 1 billion in seven-year Sukuk on the 2nd of June 2020, according to a document released from one of its issuing banks. According to media reports, the funds are to be used to allow the Emirate to bolster its financial situation, to survive the impacts of the COVID-19 pandemic, as well as the crash in oil prices. The final spread for the Sukuk was set at 245 basis points (bps) over mid-swaps, which was tightened by 30 bps from the commencement of sales earlier in the day. The sale comes as various Gulf government...

The Egyptian Financial Regulatory Authority (FRA) has authorised a request from Faisal Islamic Bank (FIB) of Egypt to publish the disclosure form to continue with the procedures for the capital increase. The disclosure form included the approval from FIB’s Board of Directors to increase the company’s issued capital by USD 66.02 million from USD 440.19 million, according to a statement to the Egyptian Exchange (EGX) on the 31st of May 2020. With this increase, FIB’s total issued capital will stand at USD 506.2 million. The increase i...

BIMB Investment Management (BIMB Investment) launched the “BIMB Shariah IncomePlus Fund” (BSIF), a new wholesale Islamic fixed income fund. According to Mohamed Ridza Mohamed Abdulla, the Chairman of BIMB Investment, BSIF seeks to provide sophisticated investors with a low-risk investment portfolio whilst providing a frequent return in the form of cash or additional units. Abdulla also noted that the BSIF will offer a higher rate than traditional term deposits and will also be exempted from tax. Abdulla added that 70-90% of...

Fitch Ratings (Fitch) has affirmed at BB- the Long-Term Issuer Default Rating (IDR) of Jordan Islamic Bank (JIB), whilst revising its Outlook to Negative from Stable. The Negative Outlook is based on Fitch’s analysis of added pressure on JIB’s asset quality, profitability and capital due to the on-going COVID-19 pandemic, coupled with a challenging operating macro-economic environment.  JIB’s BB- IDR affirmation is based on its stand-alone credit strength, implied through JIB’s Viability Rating (VR) of bb-. The VR reflects JIB’s strong domest...