Cerah Sama (CS), the investment holding company of Grand Saga (concessionaire of the Cheras-Kajang Highway), has its MYR 420 million Sukuk’s AA-IS rating affirmed by Malaysian Rating Corporation (MARC). This rating is driven by expectations of CS’ stable top-line and cash flows, robust cash reserves, and the flexible repayment structure of its Sukuk. The rating is moderated by CS’ leveraged capital structure (4.2x debt-to-equity at the end of 2019), caused primarily by sizeable dividend payments.  MARC’s stable outlook on the...

The International Islamic Liquidity Management Corporation (IILM) made three issuances totalling USD 800 million in its third auction for 2020. This issuance completes the organisations’ first quarter issuances, totalling USD 2.65 billion.  According to the IslamicMarkets Sukuk Monitor, the three issuances comprise of a USD 300 million Sukuk payable in one months’ time, another USD 300 million Sukuk for three yearsmonth, and an USD 200 million six-month Sukuk. IILM’s auction completes the...

Malaysian Rating Corporation (MARC) has affirmed Malakoff Power’s (MPower) MYR 5.4 billion Sukuk Murabahah rating at  AA-IS, with a stable outlook.  MPower operates and maintains the majority-owned domestic power plants of its parent, Malakoff Corporation (Malakoff). MARC’s rating affirmation considers the consolidated credit profile of MPower and Malakoff, as well as the concrete Kafalah guarantee provided by Malakoff to the Sukukholders.  The rating reflects the stability of cash flows available from Malakoff’s lo...

State-controlled insurer, Kenya Reinsurance Corporation (Kenya Re), announced its plans to set up a Shariah-compliant subsidiary in Egypt, following an increase of its capital base through utilising its cash reserves to fund a USD 52.5 million bonus share issue. Kenya Re reported that until 2019, the company did not meet the revised regulatory requirements of Egypt’s insurance industry, which increased the minimum capital base for reinsurers, to USD 64.9 million from USD 3.9 million.  In 2019, Kenya Re made a bonus issue which allowed a quadrupling of it...

At the end of February 2019, Alinma Investments in Saudi Arabia listed the Alinma Short - Maturity Sukuk ETF on the Tadawul Exchange in the country, with an initial seed of over USD 300 million, as reported by financial services company, Algo-Chain. Algo-Chain reported that the ETF will track the iBoxx Tadawul SAR Government Sukuk 0-5 Index, which tracks SAR-denominated Sukuk.  Alinma Investments stated that this ETF was launched to provide investors with a low-risk investment solution.  The global ETF industry includes ass...

Based on the IslamicMarkets Sukuk Monitor, on the 12th of March 2020, AEON Credit Service (AEON Credit) issued subordinated Sukuk worth MYR 200 million under its MYR 200 billion Sukuk programme. The Sukuk has a ten year maturity period, with the first optional redemption offered in five years’ time. The company stated that the proceeds would be used in its day-to-day business activities to provide Shariah-compliant consumer financing, as well as to refinance AEON Credit’s existing Sukuk.  The company stated t...

The Institute of Chartered Accountants in England and Wales’ (ICAEW) estimates Malaysia’s economic growth rate to slow down to 3.7% in 2020, from, 4.3% in 2019, considering the spill-over effects from COVID-19 impacting the economy.  The ICAEW expects growth in the first half of 2020 to be sluggish, led by lower levels of tourism, household spending, and disruptions to supply chain activities across Malaysia. However, the ICAEW also stated that they expect the negative impacts to be temporary, as expansionary monetary policy initiatives a...

Following advice from the International Monetary Fund (IMF), the Indonesian Government has decided to implement a variety of fiscal strategies to help contain the economic impact of COVID-19. Coordinating Economic Minister (CEC), Airlangga Hartarto, announced that the fiscal stimulus package expected to be implemented in April 2020 will see the government delaying import duties and corporate income taxes for up to six months, in efforts to stimulate the country’s manufacturing sector.  The impact of the virus has created a d...

The five-year dollar Sukuk maturing in 2023, issued by the United Arab Emirates (UAE) based healthcare company, NMC Health (NMC), fell by 36.5 cents on the dollar to 24.8 during the week, after debt worth USD 2.7 billion previously undisclosed to the Board of Directors (Board), came to light, said Reuters.  Refinitiv data further showed that yields on the Sukuk yield increased to 59.2% on the 11th of March 2020, from a close of 24.1% the previo...

Credit ratings agency, Moody’s downgraded Turkey’s economic growth forecast for 2020 to 2.5% from 3.0%, on account of the country failing to acknowledge COVID-19 cases, despite media reports stating otherwise.  In its previous 2019 update, Moody’s maintained a B1 rating for Turkey, with a negative outlook. At the time of the Moody’s downgrade, Turkey’s Ministry of Health had stated that the country was virus-free, despite media reports indicating possible outbre...