The Federal Government of Nigeria (FGN), through its issuer FGN Roads Sukuk Company 1 PLC, offered its NGN 150 billion Sukuk Ijarah to investors on the 21st of May 2020, as disclosed by the Debt Management Office (DMO). Subscriptions to this Sukuk are set to close on the 2nd of June 2020.  The seven-year sovereign Sukuk redeemable in 2027 carries a profit rate of 11.2% and will be listed on the Nigeria Stock Exchange as well as the FMDQ OTC Securities Exchange. Profit payments arise half-yearly, with a redemption bullet payment at maturity. ...

Following the launch of a Government regulation on the implementation of the National Economic Recovery Program (PEN), the Government of Indonesia is now drafting the design of the PEN program in accordance with the methods set out in the Government Regulation.  Based on the above regulation, the PEN can be implemented through placement of funds, State Capital Participation (PMN), government investments and guarantees. In addition, in the early stages of the PEN, the Government can also revive the national economy through state spending, according to Rahayu Puspasari, Hea...

A new global initiative named 'Oman' has been launched in collaboration between Oman's Ministry of Endowments and Religious Affairs (MOERA) and the Oman Technology Fund (OTF) to build a digital Zakat platform for Muslims across the world. According to media reports, the initiative will launch a competition amongst Omani and Muslim youth across the globe to develop a digital Zakat platform, with the winning project receiving an investment of USD 250,000. The aforesaid collaboration is expected to further widen the benefit from the Omani experience of running an online Zakat platform loca...

The Government of Malaysian State of Perak has unveiled MYR 71.17 million under its second wave of economic stimulus to aid those impacted by the movement control order (MCO) imposed to contain the spread of the COVID-19 pandemic. According to the Menteri Besar of Perak, Datuk Seri Ahmad Faizal Azumu, the second stimulus program will focus on six sectors with the business sector expected to receive MYR 18.4 million, whilst the agriculture and tourism sectors will receive MYR 15.6 million and MYR 10.84 million, respectively. Meanwhile, education and human capital sector, a...

According to the results of a survey carried out by the Dubai Chamber of Commerce (DCC) in late April 2020, 70% of companies in Dubai, United Arab Emirates (UAE) are expected to go out of business within the next six months due to the impacts of COVID-19. The survey sample included 1,288 Chief Executive Officers from diverse industries, out of which almost 75% of those surveyed comprised small businesses with less than 20 employees. Feedback from the survey showed that 27% of respondents were expecting to close their businesses within the next month, whilst 43% expected to qui...

Indonesia's national flag carrier, Garuda Indonesia (Garuda), has filed an application to stretch the payment of its Global Sukuk of USD 500 million by a minimum of three years. According to the IslamicMarkets Sukuk Monitor, the Sukuk is due to mature on the 3rd of June 2020.  According to the Chief Executive Officer (CEO) of Garuda, Irfan Setiaputra, the proposal has been submitted to Indonesia's Financial Services Authority, and the company will seek bondholders' approval during the general meeting scheduled to be held on the 10th...

United Arab Emirates (UAE) based utility firm Utico, has reached out to several investors ahead of a planned benchmark Sukuk issuance of USD 500 million, with the aim of raising finances to settle some of its debts and to restructure its portfolio.  According to the Chief Executive Officer of Utico, Richard Menezes, the company expects to conclude the issuance within the next three to four months, given the positive response it has received from the market. Menezes stated that raising finances through a Sukuk issuance will allow t...

Malaysia's consumer price index (CPI) continued to drop to a record low, dipping 2.9% year-over-year (YoY) in April 2020 to 117.6, as the movement control order (MCO) resulted in declining housing and transport costs. According to Malaysian Industrial Development Finance (MIDF), the decline in CPI in April 2020 was significantly lower than market forecast of a 1.5% YoY decline compared to April 2019. MIDF noted that declining prices of housing and utilities, down by 2.2% YoY, as well as transport which declined 21.5% YoY,&...

The World Bank has signed an agreement to provide Pakistan with USD 370 million, from which USD 200 million will be spent on healthcare projects in Punjab province, whilst USD 170 million is expected to be spent on improving the Khyber Pakhtunkhwa province's agricultural sector. According to media reports, the healthcare project in the Punjab province is aimed at increasing the utilization of quality health services, and economic and social inclusion programs amongst poor and vulnerable households across 11 (of 36) of the province’s most affected districts. While th...

In its efforts to support Indonesia's economic recovery, Bank Indonesia (BI) will provide liquidity to local financial institutions involved in a debt restructuring program for micro, small and medium-sized enterprises (MSMEs).   The Governor of BI, Perry Warjiyo stated that banks could use sovereign debt papers as security against repurchase agreements (repo) with BI, in order to receive additional liquidity for MSMEs debt restructuring. However, Warjiyo also noted that only few banks did not hold sufficient securities and hence th...