Bank Islam Malaysia (BIMB) has issued MYR 400 million worth Subordinated Sukuk Murabaha as the second tranche of its MYR 10 billion Sukuk Program. According to IslamicMarkets Sukuk Monitor, the Sukuk carries a coupon rate of 3.75% and is expected to mature in March 2030. The Sukuk carries an “A1/stable” rating by RAM Ratings Services and the proceeds from the issuance are expected to be utilized to enhance BIMB’s Islamic banking activities, working capital requirements and for other corporate purposes and/or, if required, to redeem any outstanding...

Khaleeji Commercial Bank (KHCB) of Bahrain has received shareholder approval to issue Sukuk as Additional Tier 1 (AT-1) Capital and to delist KHCB’s shares from Dubai Financial Market (DFM). This approval was received on the 25th of March 2020 at the bank’s Ordinary and Extraordinary General Meeting. With this approval, KHCB is expected to issue up to USD 200 million of AT-1 Sukuk, with the view of strengthening the bank’s capital base. Further details on the Sukuk are yet to be made public by KHCB. In addition, KHCB’s Board has received the shar...

The Board of Directors of Bangladesh’s Standard Bank Limited (SBL) has decided to revise the relevant clauses of the Memorandum and Articles of Association of the company for conversion into full-fledged Islamic banking, subject to approval from shareholders and the High Court Division of the Supreme Court. According to Bangladesh’s local media, in February 2020, SBL along with NRB Global bank (NRB) received the approval of Bangladesh Bank on their proposals to convert into full-fledged Islamic banks. With the addition of SBL and NRB, the total number o...

Malaysia’s Nippon Express (NE) has recently commenced operations in its newly constructed warehouse complex in Shah Alam Industrial Park, in the Malaysian state of Selangor. NE plans to obtain a Halal certification for the new warehouse complex in expectation of future growth in the Muslim population. Data from Orbis Research forecasts the global Muslim population to constitute 30% of the global population by 2030, contributing to the expansion of the global halal market.  With this view, NE has developed a dedicated area for ritually...

The Islamic Financial Services Board (IFSB) issued an Exposure Draft (ED-24) of a Standard on Guiding Principles for Investor Protection (IP) in Islamic Capital Markets (ICMs) on the 24th of March 2020. The IFSB expects to receive comments from regulatory and supervisory authorities, international organisations, institutions offering Islamic financial services, academics and other interested parties. ED-24 has been issued with the objectives of addressing the Shariah-specific issues that need to be considered within regulatory frameworks for IP, defining the best practices for...

Bangladesh has announced a BDT 50 billion (USD 590 million) stimulus package in an initiative to assist the country's export-oriented industries to counter the economic impact of the COVID-19 pandemic. In a televised address, the Prime Minister (PM) of Bangladesh, Sheikh Hasina stated that emergency measures have been taken considering the significance of export-oriented industries to Bangladesh’s economy and the immediate threats to the exports industry due to the on-going COVID-19 crisis. She said that the fund can be utilized only for the payment of wages and all...

Following the launch of an USD 730 billion aid package earlier this month, the Islamic Development Bank (IsDB) has launched a new aid package worth USD 2 billion for its member countries. The IsDB stated that the aid package is aimed at overcoming the COVID-19 pandemic in the short term while delivering medium term actions through financing trade and SMEs to sustain their core business activities.  The USD 2 billion package which has been developed in line with the G20 global initiative also includes long term actions to build resilient economies across IsDB member nati...

The Retail Sukuk SR-012 (SR-012) issued by the Government of Indonesia has been successful, despite the prevailing COVID-19 crisis, attracting 23,952 investors across all provinces in Indonesia. The Directorate General of Financing and Risk Management at the Ministry of Finance said that the Sukuk generated total sales of IDR 12.14 trillion, exceeding the Government’s target of IDR 7.66 trillion. According to the IslamicMarkets Sukuk Monitor, the Sukuk is set to mature on the 10th of March 2023. It was listed on the Indonesia Stock Exchange with Ban...

The Federation of Muslim Associations in Brazil (Fambras Halal) has issued the Halal Certification to the Brazilian arm of Fuchs, a German lubricant manufacturer. Accordingly, the plant, located in Barueri, São Paulo, is now permitted to supply food-grade lubricants to food manufacturing companies in Brazil, who export to Islamic market.  Food and beverage industry lubricants are mainly used in machinery, including compressors and bearing devices, used to process export food p...

At a meeting with chambers of the National Assembly principal officers, ministers and heads of Ministries, and Department and Agencies (MDAs), Nigeria’s President of the Senate, Ahmad Lawan and Speaker of the House of Representatives, Femi Gbajabiamila, revealed plans of the Federal Government to release NGN 10 Billion to Lagos State and Grant NGN 1 Billion to pharmaceutical companies, to combat impacts of the Coronavirus. The state of Lagos is said to be the worst-hit state so far by the Coronavirus. The Minister of Finance...