Independent Power Producers Association (IPPA) has requested Power Division (PD) to expedite Pakistan Energy Sukuk-II of PKR 200 billion to settle sizeable overdue amounts owing to Independent Power Producers (IPPs), which are approaching default status. Local media reported that the total amount due to the IPPs amounted to PKR 331 billion, out of which PKR 135 billion related to Capacity Payment Price (CPP) while another PKR 85 billion was in lieu of late payment interest (LPI) and other overdue amounts. According to IslamicMarkets Sukuk Monitor, Pakistan Ene...

According to a local media report, Malaysia’s Finance Minister (FM) Tengku Zafrul Tengku Abdul Aziz stated that the country's fiscal deficit for 2020 would be wider than the previously projected rate. Late last year, Malaysia projected a fiscal deficit of 3.2% for 2020. The FM now expects the fiscal deficit to widen to 4.0% of gross domestic product, as a result of the total COVID-19-related stimulus worth MYR 250 billion that has been announced so far.  In an interview with the Astro Awani news channel, the FM stated that t...

Bank CIMB Niaga Sustainable Sukuk (Mudharabah) Phase III  will be listed on the Indonesia Stock Exchange (IDX) on the 30th of March 2020, according to an announcement by the IDX. According to the IslamicMarkets Sukuk Monitor, this Sukuk is expected to be issued under three different series to raise total IDR 1 trillion aimed at supporting the Shariah financing activities of the bank. The three tranches of this Sukuk (Series A, Series B and Series C) will be issued at a price of IDR 100 with respective tenures of 370 days, 3 years and 5 years, and will carry pr...

Amidst the on-going COVID-19 crisis, the Government of Indonesia has raised IDR 6.6 trillion through the auction of State Shariah Securities (SBSN). This was lower than the initial target of IDR 7 trillion to meet the funding requirements in Indonesia's State Revenue and Expenditure Budget (APBN) for 2020.  According to the Directorate General of Financing and Risk Management, Ministry of Finance, the total incoming bids from the auction had amounted to IDR 14.6 trillion. The Government also announced that it would raise new IDR-denominated debt funding in an attempt to...

Sultan Nazrin Muizzuddin Shah, the Sultan of Malaysia’s Perak state has approved a special Zakat fund of MYR 11.95 million to assist the people affected by COVID-19 and in a measure to assist various other parties addressing the crisis. The Chief Executive Officer of Perak Islamic Religious and Malay Customs Council (MAIPk), Shahrul Azam Shaari stated that the fund was set up by MAIPk, with contributions from SP Setia Foundation and the corporate sector. In his statement, Shahrul said that MYR 5.8 million will be allocated towards low income families as...

The Kingdom of Saudi Arabia’s (KSA) Finance Ministry has announced that it has concluded the March 2020 SAR-denominated Sukuk issuance on the 27th of March 2020. The Sukuk, valued at SAR 15.6 billion is divided into three tranches, each tranche maturing in five, ten and thirty years, respectively.  KSA’s Economic Society Member, Abdullah Ahmad Al-Maghlouth stated that the issuance of Government Sukuk reflected many positive elements such as the robustness of KSA’s credit rating, the strength of the Saudi economy, the Finance Ministry’s ability to deal...

In a recent report issued by Moody’s Investor Services (Moody’s), it is reported that the Philippines might venture into issuing Sukuk to fund the country’s massive infrastructure development. An Islamic Banking Law passed in August 2019 is expected to pave the way for the Philippine Government to explore the Sukuk market as funding needs have increased amid aggressive infrastructure development. The Governor of the Bangko Sentral ng Pilipinas (Central Bank of Philippines), Benjamin Diokno, had recently stated that three conventional banks, includ...

With the increasing number of COVID-19 cases in the country, the Government of Malaysia announced an MYR 230 billion (USD 58 billion) stimulus package on the 27th of March 2020, to curb the impact of the pandemic on the country's economy.  The benefits under this stimulus package include an array of one-off measures, including financial assistance to low income earning families, unmarried individuals, students and other civil servants who are affected by the pandemic. In addition, the package also provides discounts on utility bill payments. Meanwhile, the pac...

The Malaysian Prime Minister, Tan Sri Muhyiddin Yassin (PM) has directed relevant authorities to mobilize Zakat collection centres across the country to identify those who are eligible for immediate Zakat assistance. Addressing the nation, the PM stated that the Government of Malaysia expects Zakat centres across the country to take proactive measures and assist the needy, while efforts are being undertaken by the Government to curb the spread of the on-going COVID-19 pandemic.  Muhyiddin requested all charity-based organizations including Zakat collection cen...

In a report issued by Moody’s Investor Service (Moody’s), it has been forecasted that global long-term sovereign Sukuk issuance will increase by a moderate 6% to reach USD 75 billion in 2020. With the on-going COVID-19 pandemic and lower oil prices, it is expected that fiscal deficits of countries such as Saudi Arabia, Bahrain and Oman, as well as Indonesia and Malaysia, are expected to widen.  Moody’s states that these countries are expected to resort to Sukuk for fund-raising to bridge their fiscal deficits. In 2019, Sukuk issuance by GCC...