JBIC sukuk
"Japan bank plans $100 million of ringgit sukuk", Reuters viaYahoo! Asia News, November 23, 2006
The Japan Bank for International Cooperation (JBIC) has made an announcement regarding the widely known plans to issue sukuk denominated in Malaysian Ringgit. The issue will be US$100 million and will be issued to finance renewable-energy biomass projects in Malaysia, according to JBIC's Senior Executive Director Fumio Hoshi.
Islamic Finance in Britain
"United Kingdom: Introduction to the Principles of Islamic Finance", Mondaq, November 22, 2006
A short overview of Islamic finance.
Derivative standardization
"Bank Islam, Bank Muamalat Sigh Derivative Master Agreement", Bernama, November 22, 2006
Bank Islam Malaysia Bhd & Bank Muamalat Malaysia Bhd agree to standardized documentation for Islamic derivatives.
Takaful exam
"Association, Institute to Introduce Exam for Takaful Agents", Bernama, November 22, 2006
The Malaysian Takaful Association (MTA) and the Islamic Banking and Finance Institute of Malaysia signed a Memorandum of Understanding to develop and introduce an entry qualification exam for takaful agents.
WIBC/McKinsey Report
"McKinsey & WIBC set to release 'World Islamic Banking Competitiveness Report 2006/07", AMEinfo, November 22, 2006
The report will be introduced at the 13th Annual World Islamic Banking Conference in Bahrain on December 9, 2006.
Showing posts sorted by relevance for query JBIC. Sort by date Show all posts
Showing posts sorted by relevance for query JBIC. Sort by date Show all posts
Wednesday, November 22, 2006
Wednesday, August 06, 2008
JBIC financing, Tamweel into Egypt
Japan Bank for International Cooperation (JBIC) provided its first Shari'ah-compliant financing. The project it is cofinancing is a power and water desalination plant in Qatar, 80km from Doha, which costs $3.9 billion, of which JBIC will provide financing for $1.5 billion.
Tamweel, the UAE-based Shari'ah-compliant home finance company, began operations in Egypt. The Islamic finance market in Egypt, where some of the first Islamic finance companies emerged, has been relatively less successful than many other MENA countries, particularly those in the GCC like the UAE.
Tamweel, the UAE-based Shari'ah-compliant home finance company, began operations in Egypt. The Islamic finance market in Egypt, where some of the first Islamic finance companies emerged, has been relatively less successful than many other MENA countries, particularly those in the GCC like the UAE.
Wednesday, January 16, 2008
JBIC sukuk
The Japan Bank for International Cooperation, a government organization in Japan, will make Japan the first G-7 country to issue a government sukuk, with the announcement that it will launch a $300 - $500 million sukuk with the technical assistance from Malaysia. In addition to the JBIC sukuk, Japanese financial companies are entering the industry as well.
The IFSB and the Hong Kong Monetary Authority (HKMA) jointly held a conference on Islamic finance and, in particular, ways for Hong Kong to begin catching up with other Asian countries, particularly Malaysia, in developing an Islamic finance industry. The keynote speaker was Dr. Zeti Akhtar Aziz, the central bank governor of Bank Negara Malaysia.
The IFSB and the Hong Kong Monetary Authority (HKMA) jointly held a conference on Islamic finance and, in particular, ways for Hong Kong to begin catching up with other Asian countries, particularly Malaysia, in developing an Islamic finance industry. The keynote speaker was Dr. Zeti Akhtar Aziz, the central bank governor of Bank Negara Malaysia.
Monday, July 30, 2007
JBIC sukuk
The Japan Bank for International Cooperation (JBIC), the Japanese government's overseas lender plans to issue Islamic bonds (sukuk) backed by products traded on the London Metals Exchange (LME). Although the contrasts were not specified, the sukuk price would be based on the performance of a company created to manage the funds in the LME.
Monday, November 05, 2007
News on sukuk, the Islamic finance industry and government sukuk
The International Herald Tribune has an article about the fast growth of Islamic finance despite slowdowns in other areas of finance in the wake of the subprime mortgage (and mortgage-backed securities/CDOs) crisis. The article describes the potential future growth areas: financial services to high-net worth individuals (which has been a focus of the industry) and microfinance (which has not): "growth will come from providing services to high net worth Muslims and, at the opposite end of the wealth scale, to the many Muslims who do not have access to bank accounts. A form of microcredit that avoids interest payments is an obvious area."
The Boston Globe released a good article about the Islamic finance industry following the working paper from the IMF which compared a portfolio comprised of conventional bonds with one blended between conventional bonds and sukuk and found that the blended portfolio had a lower Value-at-Risk. I wrote a summary of the paper a few weeks back.
Issuers of sukuk in the GCC area are looking at expanding their roadshows to include the United States because it is the "deepest pool of funds". The focus of the article was Barclay's, which is involved in a number of sukuk issues. The approach likely to be used is private placements (under rule 144a), which are easier from a regulatory perspective than public sales.
The Japan Bank for International Cooperation (JBIC) is looking to be the first G-8 country to have a state-sponsored institution issue sukuk. JBIC is planning a $100 million issue denominated in Malaysian Ringgit. A sovereign sukuk being explored by the U.K. has seen its momentum slowed since Ed Balls moved to become Schools Secretary.
Banks offering Shari'ah-compliant products is expected to increase globally by 50% by 2009 according to the Global Banking Corp CEO Mark Hanson. Global Banking Corp is a newly-licensed Shari'ah-compliant investment bank in Bahrain.
An unspecified 'Gulf Arab government' is planning a sukuk issue. The sukuk is envisioned to become a benchmark for Shari'ah-compliant products. Currently, only a few governments in the GCC issue sukuk including Bahrain. The global market for sukuk accounted for $37.3 billion in new issuance in the first 3 quarters of 2007, 110.7% over the previous year according to the Islamic Finance Information Service (IFIS).
In another move forward for Islamic finance in Africa, the First Community Bank in Kenya, the first Shari'ah-compliant lender in the country, is planning to expand its branch networks across the country.
The Boston Globe released a good article about the Islamic finance industry following the working paper from the IMF which compared a portfolio comprised of conventional bonds with one blended between conventional bonds and sukuk and found that the blended portfolio had a lower Value-at-Risk. I wrote a summary of the paper a few weeks back.
Issuers of sukuk in the GCC area are looking at expanding their roadshows to include the United States because it is the "deepest pool of funds". The focus of the article was Barclay's, which is involved in a number of sukuk issues. The approach likely to be used is private placements (under rule 144a), which are easier from a regulatory perspective than public sales.
The Japan Bank for International Cooperation (JBIC) is looking to be the first G-8 country to have a state-sponsored institution issue sukuk. JBIC is planning a $100 million issue denominated in Malaysian Ringgit. A sovereign sukuk being explored by the U.K. has seen its momentum slowed since Ed Balls moved to become Schools Secretary.
Banks offering Shari'ah-compliant products is expected to increase globally by 50% by 2009 according to the Global Banking Corp CEO Mark Hanson. Global Banking Corp is a newly-licensed Shari'ah-compliant investment bank in Bahrain.
An unspecified 'Gulf Arab government' is planning a sukuk issue. The sukuk is envisioned to become a benchmark for Shari'ah-compliant products. Currently, only a few governments in the GCC issue sukuk including Bahrain. The global market for sukuk accounted for $37.3 billion in new issuance in the first 3 quarters of 2007, 110.7% over the previous year according to the Islamic Finance Information Service (IFIS).
In another move forward for Islamic finance in Africa, the First Community Bank in Kenya, the first Shari'ah-compliant lender in the country, is planning to expand its branch networks across the country.
Tuesday, April 10, 2007
News catch up, part one
Malaysia's state-run pension fund Employees Provident Fund (EPF) which last month became the new owner of Rashid Hussain Bhd (RHB) could buy CIMB Bank, which runs an Islamic banking subsidiary CIMB Islamic.
A description of the takaful industry in the Gulf Cooperation Council (GCC) from Standard & Poor's including challenges and opportunities for the the industry.
A description of Islamic finance with specific reference to the market in the U.K. and an article on the U.K.'s lead in providing Shari'ah-compliant financial products.
Japan wants Asia to be the center of the global Islamic finance market and the Japan Bank for International Cooperation (JBIC) may issue sukuk in the future. [Previous posts about JBIC]
Kuwait's National Assembly votes to allow the government to open an Islamic bank, the Jaber Islamic Bank, which will be 24 percent government-owned.
A description of the takaful industry in the Gulf Cooperation Council (GCC) from Standard & Poor's including challenges and opportunities for the the industry.
A description of Islamic finance with specific reference to the market in the U.K. and an article on the U.K.'s lead in providing Shari'ah-compliant financial products.
Japan wants Asia to be the center of the global Islamic finance market and the Japan Bank for International Cooperation (JBIC) may issue sukuk in the future. [Previous posts about JBIC]
Kuwait's National Assembly votes to allow the government to open an Islamic bank, the Jaber Islamic Bank, which will be 24 percent government-owned.
Monday, September 25, 2006
Japan may launch first sukuk by G7 country
In the previous post, a story referred to plans by the Japan Bank for International Cooperation (JBIC) to launch an Islamic bond (sukuk) in the near future. Stories from August and early September of this year in the Taipei Times and Asian Banker (August & September) suggest that the JBIC is looking at issuing sukuk valued at between $300 million and $500 million on the Malaysian exchange as early as January 2007. Malaysia accounts for roughtly 2/3rd of the global sukuk market.
Tuesday, May 08, 2007
Investment firm receives QFC license, MoU between NBP and JBIC
Q INVEST became the first firm to receive a license to operate as an Islamic investment firm from the Qatar Financial Centre Regulatory Agency (QFCRA).
The Japan Bank for International Cooperation signed a Memorandum of Understanding with the National Bank of Pakistan. The MoU includes plans to work together on Islamic finance in the future. JBIC announced previously that it plans to issue sukuk.
The Japan Bank for International Cooperation signed a Memorandum of Understanding with the National Bank of Pakistan. The MoU includes plans to work together on Islamic finance in the future. JBIC announced previously that it plans to issue sukuk.
Monday, October 13, 2008
Islamic finance at risk from commodity price volatility
Although Islamic finance has grown rapidly over the past 8 years, it still is not widely accepted by high net worth individuals in Asia, some of whom are concerned that it does not have a long enough track record. One of the concerns is whether Islamic finance will be able to endure after oil prices fall back to lower prices. After reaching nearly $150 per barrel, they are now trading around $80 per barrel. A Forbes article describes in further detail the risks of falling real estate and commodity prices for Islamic finance. In addition to falling commodity prices, which lowers wealth growth in the GCC compounded by slowing real estate price growth, there is another hazard: commodity price volatility. The reason that commodity price volatility is harmful is that, whether you agree with it or not, there is widespread use of products like commodity murabaha. In transactions like commodity murabaha transactions to synthesize conventional loans are structured using trades in commodities (e.g. metals). Greater volatility in the prices of these metals introduces trading risk if the prices at which these metals can be bought and sold (often on the London Metal Exchange).
The second soverign sukuk planned by the Malaysian government will reset the risk-free pricing benchmark for ringgit denominated issues and facilitate price discovery of ringgit-denominated sukuk during the current market turmoil. The last Malaysian sovereign sukuk was issued over six years ago.
Japan Bank for International Cooperation (JBIC) may be forced to delay its sukuk issue because of the credit crisis.
I disagree with the comments from Sheikh Qaradawi about the 'collapse' of the western financial system and the presumption that Islamic finance provides a unique alternative that can stand on its own right out of the gate. Islamic finance provides a good model for how to expand ethical finance beyond just screening investments, but there are still several products that are warts on the Islamic finance industry like commodity murabaha and tawarruq. In these two cases, products are structured to mimic conventional interest-based loans to meet financial demands of Islamic banks and consumers where alternatives that are unique from conventional products have not yet been developed. Islamic finance should not be focused on standing alone apart from other ethically-based financial systems. Other ethical systems share similar concerns as Islamic finance about interest-based finance, funding weapons and other products which have a socially detrimental effect like alcohol and tobacco. The similarities should be praised and used as a way to promote a more just financial system not just one for Muslims.
The second soverign sukuk planned by the Malaysian government will reset the risk-free pricing benchmark for ringgit denominated issues and facilitate price discovery of ringgit-denominated sukuk during the current market turmoil. The last Malaysian sovereign sukuk was issued over six years ago.
Japan Bank for International Cooperation (JBIC) may be forced to delay its sukuk issue because of the credit crisis.
I disagree with the comments from Sheikh Qaradawi about the 'collapse' of the western financial system and the presumption that Islamic finance provides a unique alternative that can stand on its own right out of the gate. Islamic finance provides a good model for how to expand ethical finance beyond just screening investments, but there are still several products that are warts on the Islamic finance industry like commodity murabaha and tawarruq. In these two cases, products are structured to mimic conventional interest-based loans to meet financial demands of Islamic banks and consumers where alternatives that are unique from conventional products have not yet been developed. Islamic finance should not be focused on standing alone apart from other ethically-based financial systems. Other ethical systems share similar concerns as Islamic finance about interest-based finance, funding weapons and other products which have a socially detrimental effect like alcohol and tobacco. The similarities should be praised and used as a way to promote a more just financial system not just one for Muslims.
Wednesday, February 28, 2007
Japan enters Islamic finance training, UBG denies EPF bid for stake in RHB, Emirates Global Islamic Bank offers istisna'
Bank of Japan beginning to learn about Islamic finance
The Bank of Japan, will work to learn about how Islamic finance works, according to BoJ Governonr Toshihiko Fukui. The development follows the announcement by the Japan Bank for International Cooperation (JBIC) in November of its upcoming issue of Shari'ah-compliant sukuk. Japanese lender Bank of Tokyo-Mitsubishi UFJ Ltd. is working on sukuk issues with Malaysian CIMB Group Bhd, parent company of CIMB Islamic.
Earlier this month, Dr. Zeti Akhtar Aziz, governor of Bank Negara Malaysia, urged Japan to become more involved in the Islamic finance industry.
Utama Banking Group denies knowledge of EPF bid for stake in RHB
Utama Banking Group which holds 32.8% of Rashid Hussain Bhd, says it is unaware of an unnamed source's claim of a bid from Employers Provident Fund, which currently owns 30 percent of RHB, for UBG's holdings of RHB.
Emirates Global Islamic Bank to offer istisna'
Emirates Global Islamic Bank Limited, which was certified as an Islamic bank by the State Bank of Pakistan on February 13, 2007, announced that it will offer istisna' as a form of new home finance. Istisna' is a means of finance for projects with a longer manufacturing process where the agreement lays out the financing timeline for the project. The chairman of Emirates Global Islamic Bank, Sheikh Tariq Bin Faisal Al Qassimi, is also chairman of Emirates Investment Group.
Mobily to borrow $2.8 billion
The funds will be borrowed through Shari'ah-compliant means, but the specifics were not released.
The Bank of Japan, will work to learn about how Islamic finance works, according to BoJ Governonr Toshihiko Fukui. The development follows the announcement by the Japan Bank for International Cooperation (JBIC) in November of its upcoming issue of Shari'ah-compliant sukuk. Japanese lender Bank of Tokyo-Mitsubishi UFJ Ltd. is working on sukuk issues with Malaysian CIMB Group Bhd, parent company of CIMB Islamic.
Earlier this month, Dr. Zeti Akhtar Aziz, governor of Bank Negara Malaysia, urged Japan to become more involved in the Islamic finance industry.
Utama Banking Group denies knowledge of EPF bid for stake in RHB
Utama Banking Group which holds 32.8% of Rashid Hussain Bhd, says it is unaware of an unnamed source's claim of a bid from Employers Provident Fund, which currently owns 30 percent of RHB, for UBG's holdings of RHB.
Emirates Global Islamic Bank to offer istisna'
Emirates Global Islamic Bank Limited, which was certified as an Islamic bank by the State Bank of Pakistan on February 13, 2007, announced that it will offer istisna' as a form of new home finance. Istisna' is a means of finance for projects with a longer manufacturing process where the agreement lays out the financing timeline for the project. The chairman of Emirates Global Islamic Bank, Sheikh Tariq Bin Faisal Al Qassimi, is also chairman of Emirates Investment Group.
Mobily to borrow $2.8 billion
The funds will be borrowed through Shari'ah-compliant means, but the specifics were not released.
Friday, September 21, 2007
IMF Survey Magazine on Islamic finance
The IMF Survey Magazine devotes the 'IMF Research' section to Islamic banking and finance.
Malaysia looking to develop standards for Islamic financing of construction.
Islamic products may provide a higher return than conventional investments, according to economists in Kuwait.
Pakistan will see its first mortgage-backed sukuk.
Lloyd's TSB made a public commitment to Islamic finance.
• Islamic Banking Makes HeadwayDoha Bank, a Qatari bank, is working to expand into Japan and provide Japanese financial institutions with a link to the Middle East. The Japanese Bank for International Cooperation (JBIC) is exploring a sukuk issue, which would be the first from a government organization within the Group of Eight countries.
• Malaysia: An Islamic Capital Market Hub
Malaysia looking to develop standards for Islamic financing of construction.
Islamic products may provide a higher return than conventional investments, according to economists in Kuwait.
Pakistan will see its first mortgage-backed sukuk.
Lloyd's TSB made a public commitment to Islamic finance.
Tuesday, July 14, 2009
Yasaar Media report, Canadian sukuk, corporate sukuk market in the GCC
Yasaar Media released a report on Islamic investment banks recently. I am still reading the report and hope to have a post dedicated to it here and on my blog at Zawya.com. The report is available from Yasaar Media's website (pdf)
The second North American sukuk is expected to come from of Canadian company, Bear Mountain Resorts, by October. The sukuk will fund part of a resort community near Victoria, British Columbia and is expected to be about $380 million. The sukuk is being launched with the assistance of Siraj Capital whose CEO Ibrahim Mardam-Bey worked on the East Cameron sukuk which is now in bankruptcy while he was at Lebanese firm BSEC.
A new fund being offered by Dubai Islamic Bank provides investors with capital-protected returns based on a long-short strategy tracking the Rogers International Commodity Index Enhanced ex-Lean Hog, a commodity index. The structure of the transaction is not specified but seems like it is similar to a controversial product that used a total-return swap on an index and is likely to restart arguments about the products' desirability from a Shari'ah perspective that were raised by Sheikh Yusuf DeLorenzo.
Despite the many sovereign sukuk being issued by GCC governments, the corporate sukuk issuance market may remain largely frozen until 2010 according to Arab Banking Corporation managing director Naveed Khan. The delay between new sovereign issues and new corporate issues is expected to be caused by the higher pricing of the sovereign sukuk compared to where they were before the credit crisis.
Other News
The second North American sukuk is expected to come from of Canadian company, Bear Mountain Resorts, by October. The sukuk will fund part of a resort community near Victoria, British Columbia and is expected to be about $380 million. The sukuk is being launched with the assistance of Siraj Capital whose CEO Ibrahim Mardam-Bey worked on the East Cameron sukuk which is now in bankruptcy while he was at Lebanese firm BSEC.
A new fund being offered by Dubai Islamic Bank provides investors with capital-protected returns based on a long-short strategy tracking the Rogers International Commodity Index Enhanced ex-Lean Hog, a commodity index. The structure of the transaction is not specified but seems like it is similar to a controversial product that used a total-return swap on an index and is likely to restart arguments about the products' desirability from a Shari'ah perspective that were raised by Sheikh Yusuf DeLorenzo.
Despite the many sovereign sukuk being issued by GCC governments, the corporate sukuk issuance market may remain largely frozen until 2010 according to Arab Banking Corporation managing director Naveed Khan. The delay between new sovereign issues and new corporate issues is expected to be caused by the higher pricing of the sovereign sukuk compared to where they were before the credit crisis.
Other News
- HBG Holdings will invest in companies listed on London's Alternative Investment Market (AIM) through a Cayman Islands-domiciled Shari'ah-compliant private equity fund. HBG Holdings' shareholders are primarily institutional and private investors from the Gulf region.
- One of the sukuk funds launched recently, Emirates Investment Services' Emirates Sukuk Fund No. 1, announced it had gained 8.5% in the first 3 months since inception.
- Investors in Saad Group's Golden Belt 1 Sukuk are forming a committee to represent them, according to Reuters.
- Malaysia is 'well positioned' to help Islamic finance in Europe according to Malaysia's ambassador to Brussels, Hussein Hanif.
- An article about Abu Dhabi National Energy (Taqa) includes the note that the planned sukuk from Ras al Khaimah may offer a coupon between 8% and 8.5%.
- In the Islamic finance industry, aggregate size numbers are always rather suspect because there is no centralized methodology on how it is calculated, but according to one article, the industry now has more than $1 trillion in assets.
- Despite attempts by the Japanese government to attract Islamic finance, it is having difficulties gaining steam and the Japan Bank for International Cooperation (JBIC) sukuk that has been planned for a while may be further delayed.
- Australian investment bank Macquarie is in Malaysia and may be considering issuing a sukuk.
- Islamic finance may provide benefits to Muslim and non-Muslim homeowners in Scotland, according to an article.
Thursday, October 26, 2006
JBIC sukuk, Malaysian bond issues
"Japan Bank for International Cooperation preparing to issue Islamic bonds in Malaysia", International Herald Tribune, October 26, 2006
In late August and early September 2006, news sources were reporting that the Japan Bank for International Cooperation was planning a sukuk issue around the beginning of the year. Today's story confirms these reports and also announces that the sukuk will be issued annually on the Malaysian market denominated in Ringgit. The estimated size of next years issue is between $200 and 300 million (RM736 to 1,100 million).
"Pending Islamic bond sales in Malaysia", Business Times (Malaysia), October 26, 2006
In late August and early September 2006, news sources were reporting that the Japan Bank for International Cooperation was planning a sukuk issue around the beginning of the year. Today's story confirms these reports and also announces that the sukuk will be issued annually on the Malaysian market denominated in Ringgit. The estimated size of next years issue is between $200 and 300 million (RM736 to 1,100 million).
"Pending Islamic bond sales in Malaysia", Business Times (Malaysia), October 26, 2006
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