The Sultanate of Oman’s (Oman) Capital Market Authority (CMA) aims to display the country’s experience in channelling environmental, Social and Governance (ESG) principles towards regulating sustainable green financing and funding broadly in a seminar held at the Oman Chamber of Commerce and Industry (OCCI) on the 21st of March 2022.  Why it Matters?  The seminar reflects the CMA’s plans towards authorising and regulating financial products that are in line with the Oman Vision 2040, supporting the country’s future green economic growth. Through...

A working paper from the Bank for International Settlements (BIS) finds value in separating E, S and G compared with an aggregate Environmental, Social, and Governance (ESG) score for investors trying to minimise performance deviation from a benchmarkSeparating ESG into E, S and G allows investors increase their investments' relevant ESG score without incurring a financial cost to their returnsA simple analysis of RFI Foundation’s research on ESG and Shariah screening suggests the Islamic funds should consider how they apply deconstructed ESG data within a Shari...

Khazanah Nasional Bhd’s wholly-owned investee, Cenviro Sdn Bhd, has announced the issuance of its first sustainability-linked Sukuk worth MYR 54.6 million (USD 13 million) in two tranches under its MYR 500 million (USD 119 million) Sukuk Wakalah Programme. The maturity dates for Tranche 1 and Tranche 2 have been set at eight years and 12 years, respectively. Why it Matters? The Sukuk aligns with the International Capital Market Association’s (ICMA) prescribed principles as well as the company's efforts to reduce greenhouse gas emissions intensity and support the susta...

Egypt’s Palm Hills Developments (Palm Hills) has received approval for the issuance of Sukuk worth EGP 3.25 billion (USD 206.9 million) from its shareholders that voted at the extraordinary general meeting (EGM), in cooperation with Tharwa Securitization Company, on the 13th of March 2022. Why it Matters? Managed by the Sukuk arm of Contact Financial Holdings (previously Sarwa Capital Holding), the issuance is expected to finance Palm Hills’ integrated Badia project in West Cairo, that offers apartment buildings, standalone units along with co...

The Malaysian government’s 1Malaysia Development Bhd (1MDB) debt still obliges the country to repay a remaining MYR 17 billion (USD 4 billion) by 2023, as the public funds continue to bear the debt through direct assistance or through 1MDB’s Assets Recovery Trust Fund, according to Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz on the 14th of March 2022. Why it Matters? As of the 28th of February 2022, 1MDB’s debt commitment balance that includes the principal payments and the interest of three bonds and one Sukuk has reached MYR 38.8 billion (...

The Saudi Real Estate Refinance Company (SRC) has announced that it will delay plans for its debut Dollar-Denominated Islamic bonds to the second quarter of 2022 (2Q 2022), from previous expectations for it to take place in (1Q 2022).   Why it Matters? The delay comes on the back of the existing volatility experienced in the local debt markets over impending interest rate hikes intensified by Russia's invasion of Ukraine, with several Gulf issuers now halting for a return to stability after having mandated banks for deals. In 2022, the SRC expects to see the launch...

Saudi-based Alkhabeer Capital announced the start of the initial public offering (IPO) of its closed-ended traded Shariah-compliant investment fund named “Alkhabeer Growth and Income Traded Fund” on the Saudi Stock Exchange (Tadawul) on the 13th of March 2022. Why it Matters? The Fund's investment objective is to increase the its net asset value over time by the performance of its investments, as well as to provide investors with periodic income by distributing all annual returns received from companies and up to 50% of capital gains resulting from increases in the va...

The Saudi Real Estate Refinance Company (SRC) and Saudi National Bank (SNB) have inked an agreement worth 1 billion Saudi riyals (USD 266 million) in what is considered the largest bank refinancing deal in the Kingdom of Saudi Arabia (KSA) to date, according to the SRC in a statement on the 13th of March 2022. Why it Matters? The deal seeks to refinance the real estate portfolio of SRC to provide long-term liquidity to the home finance market in the country through expanding partnerships with originators. According to Majed Al Ghamdi, Chief Executive Officer, Retail of SNB, throu...

Oman-based Raysut Cement Company (Raysut Cement), the country’s largest cement manufacturer, announced that it has received approval from its board of directors to raise OMR 231 million (USD 600 million) via the issuance of a secured rated debt instrument in the form of bond/ Sukuk in two tranches under a new debt programme, as highlighted in a filing to the Capital Market Authority (CMA). Why it Matters? The company’s wholly owned subsidiary, RCC Holdings PTE, Singapore will issue the proposed bond/ Sukuk in Singapore. The announcement represents the company’s...

The 2° Investing Initiative (2DII) and WWF-Malaysia release the results of a pilot study by 8 Malaysian banks to evaluate their alignment with climate scenariosThe misalignment of financial institutions’ portfolios on climate transition raises the importance of taking a holistic perspective on direct & indirect transition risks as well as physical risksIt is important to remember when selecting climate scenarios that each one represents an ethical choice that weights present and future generations differently Financial institutions in Islamic markets are increasingl...