Islamic banks may be lagging behind their conventional peers in the digital race; however, it seems that Islamic fi nancial institutions may have found their niche in the world of social media and are even beating the conventional players in the game. VINEETA TAN takes a look at how social media is transforming fi nancial services as we know it and how tech-savvy Islamic banks are staying ahead of the curve leveraging this channel to enhance their value proposition, build their customer base and generate new businesses.

Rede ining banking (Islamic) fi nancial institutions often associate digital disruption with the emergence of fi nancial technology (fi ntech) fi rms; however, also redefi ning the fi nancial services landscape is the rise of social media.

From social networking sites such as Facebook, to microblogging sites like Twitt er, professional networking platforms such as LinkedIn and content-sharing sites like Youtube, banking relationships are dramatically being altered as social media becomes increasingly integrated into the everyday lives of people.

The reach and pervasiveness of social media is immense. According to fi gures from Capgemini, by 2017, the world will have a social network base of 2.55 billion — almost the size of China and India combined — and Asia Pacifi c and the Middle East and Africa are expected to lead the pack; in fact the Middle East and Africa region is projected to experience a 14.3% compound annual growth rate (CAGR) through 2017 — the highest globally (See Table 1). Excluding North America and Europe, next year, three out of four internet users will be using social networking sites.

What this means is that banks will have an avenue to tap an enormous

market base and turn these opportunities into real

commercial values, provided they deploy the right strategies. Jumping on the bandwagonRevolutionizing global communication dynamics,

social media has also changed the business of marketing. Banks are not excluded: fi nancial institutions are increasingly

investing in building their social media presence, with many making the social media platform their primary medium to reach customers.

This is especially true for Islamic banks which may not have pockets as deep as conventional banks to spend on the digital front (online banking, mobile banking application, etc), making the cost-eff ective social media engagement an appealing marketing approach.

In the GCC, several Islamic banks have outshone conventional players to top the social media league including Al Rajhi Banking Corporation, Dubai Islamic Bank (DIB), Kuwait Finance House (KFH), Riyad Bank, Samba Financial Group and Saudi British Bank (SABB), according to the fi ndings of Orient Planet Research (OPR).

“Based on the fi ndings of this report, top GCC banks now consider social media as an essential tool for growth and development. As a result, we are expecting to see these banks continue investing in relevant online strategies that will lead to increased online penetration across the region,” commented Nidal Abou Zaki, the managing director of Orient Planet Group.

4th May 2016 (Volume 13 Issue 18)

Powered by: IdealRatings®

(All Cap)

continued on page 3

COVER STORY

The World’s Leading Islamic Finance News Provider

Islamic banks: Tweeting their way to Insta-success?

PARTNER WITH USPARTNER WITH USContact for more information: François-Xavier Chenhalls-Walker Email: francois.xavier@REDmoneygroup.com

Opening doors to new opportunities

900

950

1000

1050

1100

TMSSFTW

998.010.64%

1,004.47

Muhammad Ibrahim to lead Islamic fi nance industry to greater heights as new BNM governor ...6

EPF’s Shariah compliant retirement fund a boost for further product development...7

Japanese banks’ Islamic fi nance ambitions: A straw in the wind...8

Kuwait’s national oil refi ner makes Islamic fi nance debut — country’s largest dinar fi nancing transaction ever...10

2© 4th May 2016

IFN RAPIDS

Disclaimer: IFN invites leading practitioners and academics to contribute short reports each week. Whilst we have used our best endeavors and eff orts to ensure the accuracy of the contents we do not hold out or represent that the respective opinions are accurate and therefore shall not be held responsible for any inaccuracies. Contents and copyright remain with REDmoney.

DEALSThe Maldives working on issuing sovereign dollar Sukuk within the year, says fi nance minister

Iranian government sells IRR5 trillion (US$165.51 million)-worth of Sukuk Ijarah on Iran Fara Bourse

Saudi Aramco approves funding initiatives including Sukuk program

1Malaysia Development defaults on two Sukuk facilities

Boubyan Bank picks banks to arrange Sukuk roadshows

Indonesia to raise IDR4 trillion (US$302.8 million) via sovereign Sukuk auction

Redemption of Special Power Vehicle’s Islamic notes due

Islamic asset-backed securities regulation in place; Otoritas Jasa Keuangan awaits participation from industry players

Perdana Petroleum issues RM635 million (US$161.86 million) Sukuk Murabahah

Bahrain Bourse doubles number of short-term Sukuk and treasury bills listed with the listing of 11 central bank issuances

Saudi International Petrochemical Company to meet investors for potential Sukuk sale

Manfaat Tetap makes payment on Sukuk Mudarabah

NEWSBank of Ghana revokes provisional Islamic banking license granted to Saudi fi nancier after failure to comply with regulatory requirements

Danamon Syariah to add more branches facilitating Islamic transactions; plans Sukuk issuance

Investment Account Platform lists maiden venture – RM10 million (US$2.56 million) investment into public transportation service provider

Allied Bank inaugurates new Islamic banking branch in Faisalabad

Malaysia’s Sukuk issuance increases 50.5% in the fi rst two months of 2016; helps push global issuance

IDB, Turkey and Indonesia to fi nalize structure of Islamic infrastructure bank over the next six months

Sidra Capital makes fi rst foray into US real estate property market

Jordanian consortium intends to acquire Dubai Islamic Bank’s Jordanian business

Maisarah Islamic Banking Services rolls out new Mudarabah account

Saudi Company for Hardware procures Islamic banking facility from Arab National Bank

Iran sees a surge in foreign investment into securities market since lifting of sanctions

ASSET MANAGEMENTManulife Aset Manajemen launches online platform for mutual fund transactions in Bandung

TAKAFULMalaysia Deposit Insurance Corporation completes Takaful levy framework

MAA and Solidarity receive approval to dispose of Takaful business to Zurich Insurance Company

RATINGSMoody’s assigns ‘Ba1’ ratings to Ezdan Holding Group; outlook stable

Malaysia maintains ‘AAA’ rating

Moody’s assigns defi nitive ‘A3’ rating to Malaysia’s sovereign Sukuk

RAM reaffi rms Public Islamic Bank’s Sukuk Murabahah ratings at ‘AAA/Stable’ and ‘AA1/Stable’

Capital Intelligence downgrades Tadhamon International Islamic Bank’s ratings due to volatility

Commercial Bank International receives ‘A-’ rating from Fitch

‘Ba3’ rating of Bangladesh refl ects stable and strong growth performance and modest debt burden, says Moody’s

RAM reaffi rms SI Capital’s Islamic securities’ rating at ‘AAA/Stable’

Pakistan’s ‘B3’ rating refl ects strengthening growth and progress on structural reforms, according to Moody’s

MOVESAl-Madina for Finance and Investment appoints new CEO

Lembaga Tabung Haji’s current deputy set to be new group managing director cum CEO

London Central Portfolio welcomes former FTSE 250 chairman as property fund director

IFN Rapids ................................................... ..2

IFN Reports:

• Muhammad Ibrahim to lead Islamic fi nance

industry to greater heights as new BNM governor•

EPF’s Shariah compliant retirement fund a boost

for further product development• Japanese banks’

Islamic fi nance ambitions: A straw in the wind• RHB

Islamic International Asset Management gunning

for ASEAN growth with new Islamic fund• DIFC

and DEC collaborate to develop Islamic fi nance in

accordance with Dubai Ruler’s Islamic economy

ambition• Kuwait’s national oil refi ner makes Islamic

fi nance debut — country’s largest dinar fi nancing

transaction ever• Sovereign Sukuk: New players in an

evolving global landscape .....................................6

IFN Analysis:

Egypt: Remaining hopeful ............................. 12

The pressing need for the right match of talents in a

fast-growing industry ...........................................13

Case Study: Indonesia’s 2016 US dollar Sukuk:

The fi rst and largest dual-tranche off ering .........14

Country Correspondent:

Maldives .................................................... 15

Country Feature:

Philippines continues to foster Islamic fi nance

development ............................................... 16

Sector Feature:

How do we att ract and develop human capital

into the Islamic fi nance industry, before

breakfast? ............................................................... 17

Asset Management Feature:

Sukuk outlook .......................................................................18

Islamic Finance news ................................... 20

Deal Tracker ................................................. 26

REDmoney Shariah Indexes ...................... 27

Eurekahedge Funds Tables ........................ 29

Dealogic League Tables .............................. 31

Events Diary................................................. 35

Company Index ........................................... 36

Subscription Form ....................................... 36

Volume 13 Issue 18

3© 4th May 2016

COVER STORY

For the GCC region alone, the total number of followers across the social media accounts of these 15 leading GCC banks have reached high numbers —Facebook (5.15 million users); Twitt er (2.45 million users); LinkedIn (865,503 users); Instagram (366,686 users) and YouTube (56,478 subscribers).

Globally, banks with strong Islamic banking brands are also building successes in the social media realm.

According to the Financial Brand, which ranks social media presence of banks worldwide based on following metrics, in the fi rst quarter of 2016: Malaysia’s Maybank and CIMB — both parents of some of the world’s largest Islamic banks — are in the top-25 quadrant (Maybank ranked 13th and CIMB 21st), beating the likes of Goldman Sachs (15th), Credit Suisse (19th), Barclays (20th) and Deutsche (23rd).

Competitive advantageOne of the most compelling reasons to join the social media fray is customer engagement. Consumer needs are evolving rapidly and growing in sophistication in this era of digitalization — customers expect

real-time interaction and personalized responses from their fi nancial services providers — needs that can be met by eff ective social media engagement. According to the EY GCC Digital Banking Report 2015, three out of four of GCC customers (78%) would leave their existing banks for another in the name of bett er digital experience and up to 64% would be willing to bank with a digital-fi rst institution.

A prime example of a bank att empting to bett er connect with customers

and re-brand itself into a modern institution through

social media to appeal to the younger generation is Malaysia’s fi rst bank, Bank Simpanan Nasional (BSN). Although the government-owned bank, which is

the nation’s largest Islamic microfi nance provider

and whose majority of fi nancial portfolio is Shariah compliant, is the largest bank in the

Islamic banks: Tweeting their way to Insta-success?Continued from page 1

continued on page 4

Social media can provide

these banks with vital data and stronger business intelligence through the proper analysis of customer pro iles and surveys while also having the ability to identify emerging trends based on public insight

Table 1: Ranking of GCC banks across social media channels (as of the 31st March 2016)

Ranking Facebook Twitt er Instagram Youtube LinkedIn

First Qatar National Bank (QNB)

National Commercial Bank (NCB)

National Bank of Kuwait (NBK)

NBK National Bank of Abu Dhabi

Second SABB Al Rajhi KFH Al Rajhi DIB

Third Emirates NBD SABB QNB NCB Emirates NBD

Source: OPR

Source: Capgemini analysis, 2014; “Social Networking Reaches Nearly One in Four around the World,” eMarketer, June 2013

Global

North America

Western Europe

Central & Eastern Europe

Latin America

Middle East & Africa

Asia aci c

CAGR2011-13E

19.1%

5.1%

10.3%

12.7%

19.5%

30.7%

24.4%

CAGR2013E-17E

10.1%

3.0%

4.7%

6.4%

10.5%

14.3%

12.2%

Chart 1: Social network user base (mn), by region, 2011-17

3000

2500

2000

1500

1000

500

0

Soci

al n

etw

ork

user

bas

e (in

mill

ions

)

1,221164143137152123

502

1,469174160155183164

633

1,733181174174217210

777

1,967188186190247249

907

2,177194195203280

287

1,018

2,372199202213

303

325

1,130

2,550204209223

324

358

1,232

2011 2012 2013E 2014E 2015E 2016E ‘2017E

4© 4th May 2016

COVER STORY

country by branch network, however the bank faces the challenge of shedding its ‘old’ rural bank image to reach out to new customers. In the past year, the bank has stepped up its social media push, launching several award-winning viral online campaigns which generated millions of views.

“Social media is an extremely vital component of our marketing strategy, especially since the newspaper industry is becoming a sunset industry,” said Frederick Siew, the deputy CEO of BSN, to IFN. “The way people consume information, especially the Gen Y population, is very diff erent — no longer are they reading newspapers for news, but they are relying on social media for news — this is a testament to the growing strength of social media and the way forward for marketing.”

Siew revealed that approximately 50% of the savings bank’s marketing and branding budget is allocated to social media with the rest to print, radio and television among others; it expects to spend some RM130 million (US$33.21 million) over the next three years on corporate branding.

“It is not only cheaper to market on social media, but it also has a much wider reach as compared to the other mediums,” said Siew.

However, apart from creating brand affi nity among the public

and enhancing the experience of customers, social media

engagement is imperative in managing and mitigating

threats toward banks. The openness of social

media and the ease for users to broadcast their opinions can be a double-edged sword for banks because as easily

as one can help elevate the reputation of banks through good feedback, one can also threaten a bank’s reputation with negative chatt er. With proper social analytics and trained media-savvy staff , corrective measures can be taken to mitigate the risk of potential reputation damage.

Social media analytics highlights another competitive advantage from the usage of social media: data.

“GCC banks must focus on cultivating their social media presence in order to ensure their competitive advantage. Social media can provide these banks with vital data and stronger business intelligence through the proper analysis of customer profi les and surveys while also having the ability to identify emerging trends based on public insight,” said Nidal.

Due to the traffi c of social media interaction, the depth and breadth of data secured from this platform is tremendous. From ascertaining the creditworthiness of individuals, to

Islamic banks: Tweeting their way to Insta-success?Continued from page 3

continued on page 5

Source: Capgemini analysis, 2014; “Social Networking Reaches Nearly One in Four around the World,” eMarketer, June 2013

NorthAmerica

WesternEurope

Central &Eastern Europe

Latin America

Middle East& Africa

Asia-aci c

Across regions, WesternEurope is estimated to havethe lowest social networkuser penetration

Emerging economies areexpected to lead with highersocial network userpenetration from 2015

(% of internet users)% Point Change

2012-17

4.4%

11.0%

6.0%

13.4%

18.5%

19.7%

63.4% 65.6% 66.6% 67.5% 68.1% 68.6% 70.0%

Chart 2: Social network user penetration (%), by region, 2011-17

53.1% 57.9% 61.5% 64.1% 65.9% 68.6% 67.6%

69.9% 71.9% 74.3% 75.9% 76.8% 77.3% 77.9%

65.2% 68.9% 72.4% 74.9% 79.1% 80.4% 82.3%

66.7% 74.3% 80.5% 83.8% 87.2% 90.3% 92.8%

52.4% 58.3% 64.2% 68.6% 72.1% 75.5% 78.0%

2011 2012 2013E 2014E 2015E 2016E 2017E

5© 4th May 2016

COVER STORY

gauging customers’ needs and demands, analyzing social media data enables banks to not only improve marketing, customer service and risk management but also to spur product and service development as well as lead generation and sales.

Integrating social media and core servicesIn more mature markets, fi nancial institutions have already begun integrating social media with core banking services allowing customers to conduct traditional banking transactions such as opening an account, initiating wire transfers and purchasing fi nancial products over social media platforms. These, however, have yet to take off among Islamic banks although steps are already being made in that direction.

In April, Emirates Islamic (EI) became the fi rst Islamic bank in the UAE to off er banking services over a social media platform. Branding it as ‘Social Banking’, EI’s new service allows customers to perform select transactions over Twitt er such as enquiring about balance, accounts or credit cards and viewing the last few transactions. To maintain privacy and confi dentiality, the bank will only respond to customer queries via a direct message.

“The introduction of banking via Twitt er is a fi rst for the Islamic banking industry and reinforces our continued commitment to set new standards of

innovation in Islamic fi nance,” explained Faisal Aqil, the deputy CEO of consumer wealth management at EI. “Banking via Twitt er is especially relevant given the UAE’s advanced social media and mobile phone penetration. With this new service, we are able to off er our growing customer base yet another quick and convenient method to access their banking requirements.”

Way forwardThe changing dynamics of banking with the rise of internet and social media is upon us and Islamic banks need to adapt or be left out. Admitt edly, there are signifi cant challenges ahead including ambiguity on how social networks will impact traditional banking, the lack of proper regulations to realize the full banking potential of social media, consumer protection and cybersecurity threats as well as training competent social media personnel and consolidating banks’ multichannel platforms to maintain consistency.

Islamic banks may have made inroads in creating a social media presence; however, the challenges mentioned are perhaps even more acute for Shariah banks which lack the scale and resources to build on the social media presence they have to take it to the next level: integrating the platform with core banking services. But at least the few fi rst steps have been made, and we’re off to a good start.

Islamic banks: Tweeting their way to Insta-success?Continued from page 4

Islamic banks may

have made inroads in creating a social media presence; however, the challenges mentioned are perhaps even more acute for Shariah banks which lack the scale and resources to build on the social media presence they have to take it to the next level: integrating the platform with core banking services

Highlights• Compare and contrast between Sukuk, Bonds and Asset-Backed Securities (ABS)• Identify different type of Sukuk and debt capital market strategies applied in the market• Examine various current issues related to Sukuk market-covering business, credit, legal, Shariah and other issues• Analyze various deal term sheets to determine risks, legal status and enforcement rights of investors• Structure suitable Sukuk solution to meet different financing and investment needs• Use new and recent real-life deals to understand key concepts

29th - 31st May 2016, DUBAI29th 31st M 2016 DUBAIADVANCED SUKUK & ISLAMIC SECURITIZATION

www.REDmoneytraining.comdubaicourse@REDmoneygroup.com

6© 4th May 2016

IFN REPORTS

The appointment of deputy governor Muhammad Ibrahim to succeed Dr Zeti Akhtar Aziz as governor of Bank Negara Malaysia has been embraced positively by the fi nancial community, particularly the Shariah fi nance fraternity, who sees Muhammad as the best candidate to continue Dr Zeti’s global Islamic fi nance legacy. VINEETA TAN writes.

“The appointment of Muhammad Ibrahim is the right decision for the economy and the overall fi nancial market — the market will react positively. His passion for Islamic fi nance bodes well for the industry. I am confi dent he will lead us to greater heights as a global champion and leader in Islamic fi nance,” Badlisyah Abdul Ghani, the president of the Chartered Institute of Islamic Finance Professionals and former CEO of CIMB Islamic, told IFN.

The Harvard graduate who was appointed deputy governor in 2010 has been an ardent Islamic fi nance supporter and as the right-hand man of Dr Zeti, has been closely involved in various initiatives and policies to develop the industry.

Describing the appointment as “defi nitely positive for the country”, Dr Zeti said: “Being part of our policy team at the bank will provide continuity and the much-needed certainty in the prevailing period of great uncertainty. I have great confi dence in his ability to lead the bank going forward into the future.”

International and Malaysian investment circles have been keeping a close eye on the transition of long-standing Dr Zeti as her exit as the head of one of the world’s most respected central banks and foremost Islamic fi nance stalwart comes at a time when the country is embroiled in political controversy involving Prime Minister Najib Razak, casting concerns over the independence of the central bank and the country’s monetary policy direction.

Muhammad has big shoes to fi ll — Dr Zeti in her 16-year tenor as BNM governor has led the country through some of the toughest economic storms in Malaysian history (and the region) including the 1998 Asian fi nancial crisis (as acting governor) and has built Malaysia’s Islamic fi nancial infrastructure to become the global

benchmark of excellence. Market players are, however, confi dent that Muhammad is the right man for the job.

“Muhammad’s vast experience, extensive knowledge and leadership record qualify him well for this new challenge and we are confi dent that he will continue the good work of Dr Zeti in leading what can be considered one of the most respected central banks in the world,” commented Abdul Farid Alias, the group president and CEO of Maybank and chairman of the Association of Banks Malaysia.

Zafrul Aziz, the group CEO of CIMB Group, also relayed his optimism: “We are confi dent he will further the good work of his predecessors while imprinting his own stamp of leadership to keep Malaysia’s fi nancial system strong, stable and progressive.”

Muhammad Ibrahim to lead Islamic inance industry to greater heights as new BNM governor

Highlights:• Addressing Asset Liability Management within an Islamic Banking Context• Solutions to Manage Key Risk and Liquidity Management Challenges with Islamic Banks• Identifying Risks Unique to Islamic banks due to ALM Structures• Understanding Risk-Based Pricing of Islamic Financial Instruments• Pricing Islamic Financing Receivables and Sukuk Investments

www.REDmoneytraining.comdubaicourse@redmoneygroup.com

ASSET LIABILITY MANAGEMENT &RISK-BASED PRICING FOR ISLAMIC BANKS

8 t h - 1 0 t h M a y 2 0 1 6D U B A I

7© 4th May 2016

IFN REPORTS

The recent confi rmation by Malaysia’s Employees Provident Fund (EPF) to launch a Shariah compliant retirement fund by January 2017 with an estimated initial size of around RM100-120 billion (US$25.64-30.77 billion) has become a driving force for domestic product development in the country, DANIAL IDRAKI writes.

In April this year, EPF’s CEO Sharil Ridza Ridzuan told an audience at an investment conference that the pension fund expects around 1.3-1.5 million out of 6.7 million members to opt for the new Shariah fund in the fi rst year alone. Although this fi gure comes as no surprise given the fundamentally solid footprint of Islamic fi nance in the Muslim-majority country, EPF’s initiative remains a boost for Islamic fund managers domestically. “People want alternatives,” Najmuddin Lutfi , CEO of BIMB Investment, told IFN recently.

“For retirement plans, there is strong sentiment toward Shariah compliant investing, and with EPF taking on the mantle, it sends out a positive signal to the Islamic capital markets, both locally and globally. EPF is one of the largest pension funds in the world, and for the organization to have a focus on Islamic investments, it would encourage other

pension funds to also consider Islamic fi nance initiatives.”

EPF previously confi rmed that approximately 40% of its total investments as at the end of December 2015 are Shariah compliant, with a Shariah Advisory Council established in 2010 to advise on its Islamic investments.

“Currently, there is still a lack of Islamic product diversity in the country, and with this step taken by EPF, which is in line with the Malaysia International Islamic Financial Center initiatives (of developing Malaysia as an international marketplace for Islamic fi nance), it would be a catalyst for product development and encourage more Islamic fund managers to enter the fray [in Malaysia]. Essentially, EPF’s initiative will boost product development not just on the retail side, but also on the institutional side,” Najmuddin opined.

According to data compiled by the Securities Commission Malaysia (SC), there are 20 providers of Islamic private retirement schemes (PRSs) with a net asset value (NAV) of RM377.91 million (US$96.91 million) as at the end of December 2015, which makes up 32.2% of Malaysia’s PRS industry at RM1.17 billion (US$298.85 million). The Islamic PRSs’ NAV has seen an incredible 82% growth year-on-year compared to an

NAV of RM207.5 million (US$53 million) recorded in 2014, data by SC shows. Meanwhile, there are 197 retail Islamic funds with a total NAV of RM52 billion (US$13.34 billion) in the market as at the end of March 2016.

Najmuddin added that Malaysia currently has 20 fully-fl edged Islamic fund managers, and while strong demand has already been established, he does not foresee a problem with the supply side. “Most of the Islamic fund managers have been around for more than 10 years with roughly 197 retail Islamic funds already available in the market, and in that sense, product off ering has been there for quite some time.”

Najmuddin added that in terms of criteria for retail funds, EPF’s Shariah retirement fund would not compromise on the minimum three years of a proven track record on total returns, consistency on returns and capital preservation. “As fund managers, we still need to meet the criteria.”

Sharil had said during his presentation to investors that in keeping with Shariah principles, the new retirement fund will not have a guaranteed minimum dividend rate of 2.5% which it currently provides annually to its members.

EPF’s Shariah compliant retirement fund a boost for further product development

For retirement plans, there

is strong sentiment toward Shariah compliant investing, and with EPF taking on the mantle, it sends out a positive signal to the Islamic capital markets, both locally and globally

8© 4th May 2016

IFN REPORTS

Standing alongside China and the US as the world’s largest economic powerhouses, Japan has yet to rest on its laurels, and making inroads into the global Islamic fi nance market has proven to be a bonus for its banking fraternity. Despite being slow to take off in their home country, Japanese megabanks are making headlines overseas. Speaking to visionaries from two of Japan’s biggest banks, NURUL ABD HALIM takes a tour of their Shariah fi nance prospects.

Bank of Tokyo-Mitsubishi UFJ (BTMU), Japan’s biggest bank by assets, was the fi rst Japanese bank to embark on the East Asian nation’s Islamic fi nance journey when in 2008 it obtained the license to off er Islamic products via its International Currency Business Unit in its Malaysian subsidiary. As the premier commercial banking arm of Mitsubishi UFJ Financial Group, BTMU Malaysia has a long-standing relationship with Malaysia and has been instrumental in supporting Malaysia’s economic development including its Islamic fi nance ambitions since its inception in 1957. “We continue to view Malaysia as a key hub for BTMU’s Islamic fi nance products and services,” extolled Naoki Nishida, the president and CEO of BTMU Malaysia, in an exclusive interview with

IFN. Acting as the Islamic fi nance hub for BTMU Group, BTMU Malaysia is poised to capture potential deals and extend Shariah compliant off erings not only in Malaysia, but also Indonesia and Brunei by collaborating with teams across the group.

Observing a growing traction in the bank’s Shariah compliant fi nancing portfolio, Nishida hopes that Islamic banking activities will make up 40% of BTMU Malaysia’s total fi nancings and assets over the coming years, in line with the Malaysian government’s goals to increase Sukuk market share. “Some companies have already made enquiries for potential fi nancing,” shared Nishida commenting on the bank’s future pipeline which saw demand coming from key clients in the Malaysian and Japanese joint ventures and corporations, which previously have utilized its Shariah compliant fi nancing. With the world’s fi rst yen-denominated Sukuk successfully issued in 2014, the bank is optimistic that another one is forthcoming when the time is right. “The program is still good for another 8 years, so [we] may have a chance to issue in the future,” said Nishida confi dently.

In 2015, BTMU became the fi rst Japanese bank to established its second Islamic fi nance hub via its branch in Dubai to strengthen BTMU’s worldwide Islamic banking capability.

Walid Sarieddine, the head of Islamic fi nance at Sumitomo Mitsui Banking Corporation (SMBC) Europe, one of two SMBC subsidiaries off ering Islamic banking products and services that cover the EMEA region, told IFN that Islamic fi nance could play a bigger role in the region and also Southeast Asia. Despite a general slowdown in the global economy exacerbated by a slump in oil prices, the energy and infrastructure sector in the EMEA, particularly the

GCC region where SMBC Europe has been providing Shariah compliant fi nancing for a number of years, may still present various opportunities. “Naturally, it will lead to the creation of additional requirements for some of our banking activities to be done in a Shariah compliant way, and we are in a position to respond positively, always within our set strategy,” added Walid.

SMBC is a global top-tier project fi nance bank with a proven track record and international recognition under its belt. Apart from being the fi rst Japanese bank that started participating in a signifi cant number of Shariah compliant project fi nancings in the Middle East several years back, SMBC is also active in Shariah compliant corporate and shipping fi nances, especially in Southeast Asia.

“Our risk appetite for Islamic fi nance is not diff erent from that of conventional fi nance. As such, we intend to further develop our Islamic fi nance franchise and products in order to respond to our customers’ needs and requirements, and widen our customer base as well,” explained Walid, adding that: “We are considering several options including utilizing our Dubai branch as an offi ce to also handle Islamic fi nance [transactions].”

Sharing the same sentiment, both SMBC Europe and BTMU Malaysia are working hard toward enhancing their Islamic fi nancial services to respond to investors’ evolving and sophisticated demand for more competitive products. Japan may be taking baby steps in warming up to Islamic fi nance, but recent developments in the Shariah fi nancing and Sukuk activities arising from Japanese banks indicate a straw in the wind for an accelerated Islamic fi nance growth story from the Land of the Rising Sun.

Japanese banks’ Islamic inance ambitions: A straw in the wind

Naturally, it will lead

to the creation of additional requirements for some of our banking activities to be done in a Shariah compliant way, and we are in a position to respond positively, always within our set strategy

9© 4th May 2016

IFN REPORTS

The growth of ASEAN is certainly gaining the att ention of fund managers of late, and the recent launch of the RHB Islamic ASEAN Megatrend Fund by RHB Islamic International Asset Management (RHBIIAM) refl ects the opportunity present for Shariah compliant investing in the Southeast Asian region. DANIAL IDRAKI looks at RHBIIAM’s latest initiative in a region of more than 600 million people.

Last week, RHBIIAM launched a new Islamic equity growth fund targeted at the fast-growing ASEAN economies, and it aims to achieve a medium to long-term capital appreciation through investments in Shariah compliant securities. Eliza Ong, the managing director and regional head of RHB Group Asset Management, said during the launch that the new fund is targeted predominantly at investors who are seeking to gain exposure to companies that are benefi ting from the ongoing development and growth of the ASEAN region.

“The fund currently stands at RM127 million (US$32.45 million), and we are targeting to grow the fund to RM300

million (US$76.65 million) by the end of 2016. In addition to marketing this fund in Malaysia, we are also looking at off ering this fund regionally to att ract foreign investments into a Malaysian-owned fund,” Ong explained to IFN. She added that RHBIIAM projects a targeted return of 8% to 12% per annum, with 70% of the fund to be invested in ASEAN companies, while the remaining 30% will be invested in companies across Asia on an “opportunistic basis”.

The RHB Islamic ASEAN Megatrend Fund’s product highlights sheet shows that the fund applies the FTSE Shariah ASEAN Index (Islamic) as a benchmark, with 70% to 98% of the net asset value (NAV) going into Shariah compliant equities and equity-related securities, while around 2-30% of the NAV will be investments in liquid assets, including Islamic money market instruments and Islamic deposits with fi nancial institutions.

The fund adopts a bott om-up approach and will be invested across sectors, noted Ong. “The companies selected are the ones that are able to maintain an extended business up-cycle, [have a] strong management team, and with the ability to adapt to the rapidly changing business environment. Companies with strong research and development, innovation along with [a] strong balance sheet, high free cash fl ow and att ractive dividend yields would be in favor. Fundamentally, the companies’ forward pricing earning ratio should be

lower than that of the respective market valuation,” she added.

RHB’s Islamic business currently contributes about 9% to total group assets under management. Ong commented to IFN: “We are expecting this to grow to double digit[s] over the next three to fi ve years for the enlarged group asset management business. Through this fund, we are leveraging on the growth potential of ASEAN markets and on trends that will shape ASEAN’s future economy.”

In terms of ensuring Shariah compliant investments, the new fund adopts a number of screening standards issued by regulatory authorities in countries with strong Islamic fi nance footprints. This include the Shariah Advisory Council of the Securities Commission Malaysia, Otoritas Jasa Keuangan Indonesia and AAOIFI, Ong noted in her speech during the fund’s launch.

In 2014, the ASEAN region had a combined GDP of US$2.6 trillion and was the seventh largest in the world, with foreign direct investment (FDI) reaching US$136 billion, accounting for 11% of global FDI infl ows, according to fi gures on ASEAN’s offi cial website. Leaders from the 10 countries agreed to the formal establishment of the ASEAN Economic Community (AEC) in 2015, to drive the economic integration of the region and adopted the AEC Blueprint 2025 to further propel the region’s economic agenda.

Fund Focus: RHB Islamic International Asset Management gunning for ASEAN growth with new Islamic fund

Highlights• Recognizing Waqf as an important institution in the Islamic financial system• Knowing the Shariah and legal perspectives of cash and corporate Waqf• Understanding the administration and governance of cash and corporate Waqf• Gaining insight on how to establish a corporate Waqf• Proposing a framework for Corporate Waqf Bank through Corporate Social

Responsibility (CSR)

www.REDmoneytraining.com | dubaicourse@REDmoneygroup.com

30th May - 1st June 2016, DUBAI

Innovation, Regulation & Practice

CASH WAQF & CORPORATE WAQF:NEW FINANCIAL PRODUCTS

10© 4th May 2016

IFN REPORTS

Dubai’s fi nancial free zone and the emirate’s think tank have joined hands to pool and mobilize resources to develop the country’s Islamic fi nance proposition, aligning themselves with the vision of Prime Minister Sheikh Mohammed Rashid Al Maktoum to establish Dubai as the global capital of the Islamic economy. VINEETA TAN reports.

Dubai International Financial Center (DIFC) and the Dubai Economic Council (DEC) have signed an MoU which will see the two entities cooperating in the fi eld of Shariah fi nance amid greater synergy to enhance the economic initiatives of Dubai and the UAE through the exchange of knowledge and sharing of best practices in areas of fi nancial studies, economics, research and corporate governance. The two parties will also jointly develop programs and projects to achieve their mutual strategic objectives.

“Given our mutual goal to further drive Dubai’s leading position as a global fi nancial hub, we are confi dent this partnership with DEC will succeed in augmenting trade and business growth in the emirate and boost the development of the fi nancial services sector in Dubai, the wider UAE and the region as a whole,” said Essa Kazim, the governor of DIFC.

Acting as the fi nancial gateway connecting businesses and fi nancial institutions with emerging market opportunities across the Middle East, Africa and South Asia (MEASA), the DIFC expects the strategic partnership agreement to accelerate the economic growth of the UAE through critical research-related projects.

“We are confi dent that DIFC’s 2024 growth strategy will strengthen the center’s position as a gateway to the

MEASA region and further encourage global and regional fi nancial fi rms to set up operations in Dubai. Aligned with DEC’s strategic objectives, DIFC aims to support the fi nancial sector in contributing 18% to Dubai’s GDP,” noted Hani Al Hameli, the secretary-general of DEC.

DIFC and DEC collaborate to develop Islamic inance in accordance with Dubai Ruler’s Islamic economy ambition

The national oil refi ning company of Kuwait has tapped the Islamic debt fi nancing market for the fi rst time in its half a century-long history culminating in the nation’s largest Kuwaiti dinar fi nancing transaction to date. VINEETA TAN casts an eye on the landmark deal.

Kuwait National Petroleum Company (KNPC) recently secured a KWD1.2 billion (US$3.97 billion) fi nancing — comprising Islamic and conventional tranches — to fund its KWD3.4 billion (US$11.25 billion) clean fuels project, which includes upgrading and integrating the State’s two largest existing refi neries: Mina Abdulla and Mina Al Ahmadi refi neries. The transaction represents KNPC’s debut in the bank fi nancing market — both conventional and Islamic.

The multibillion dollar project is part of Kuwait’s KWD30 billion (US$99.27 billion) economic development plan. The country intends to increase oil production to four million barrels per day by 2020 which could bolster its standing as one of the biggest oil

producers in the world and potentially increase petroleum contributions to its GDP which currently stands at over 50%. Kuwait commands over 6% of global crude oil reserves at approximately 102 billion barrels (according to the Central Intelligence Agency). Upgrading the Mina Abdulla and Mina Al Ahmadi refi neries will boost the combined capacity of the facilities to 800,000 barrels per day from the existing 736,000.

John Cunha, a partner at Al Ruwayeh & Partners, legal counsel of the fi nanciers involved in this deal, said: “Despite

challenging economic times, this transaction underlines the interest of the economic players in the oil sector and its development.” Kuwait Finance House and National Bank of Kuwait were among the banks involved in this landmark transaction.

Despite market volatility and a global slowdown in the oil and gas sector, 12-month rolling data from Dealogic shows that the segment accounts for the largest portion of the global Islamic fi nance market at over US$4 billion, as at the 2nd May 2016 (See Chart 1).

Kuwait’s national oil re iner makes Islamic inance debut — country’s largest dinar inancing transaction ever

0 US$ blnSource: Dealogic

1 32 54

Transportation

Finance

Mining

Oil & Gas

Utility & Energy

11© 4th May 2016

IFN REPORTS

The evolving landscape of the global economy has seen more nations tapping into the Islamic debt markets, with Maldives, Iran and Brunei among the newer players to make headway in the sovereign Sukuk space. DANIAL IDRAKI brings you the latest updates.

MaldivesThe Maldives is planning a sovereign dollar-denominated Sukuk expected to be issued within the next year, Finance Minister Abdulla Jihad, revealed to IFN recently. The issuance is part of the Republic’s National Economic Transformation Program and ambition to become the regional hub for Islamic fi nance in South Asia.

IranThe government of Iran sold the fi rst batch of its Sukuk Ijarah on the Iran Fara Bourse (IFB), an over-the-counter market for securities and other fi nancial instruments, its CEO, Amir Hamouni, said. About IRR5 trillion (US$165.51 million)-worth of the Sukuk were sold in less than a second on the IFB’s system due to high demand, according to Amir.

BruneiAutoriti Monetari Brunei Darussalam (AMBD), the agent to the government of Brunei in managing and administering Sukuk Ijarah issuances, issued a short-term Sukuk Ijarah facility of up to BN$50 million (US$36.46 million) with a one-year tenor and a rental rate of 1.03%, on the 14th April, making it its 129th Sukuk Ijarah issuance. The Brunei government has to date issued over BN$9.61 billion (US$7 billion) worth of short term Sukuk Ijarah, and total holdings of Sukuk outstanding stood at BN$575 million (US$419.23 million), according to AMBD.

IndonesiaThe government of Indonesia announced that it will auction sovereign Sukuk (SPN-S 04112016 and four project-based Sukuk series) with an indicative target of IDR4 trillion (US$302.4 million) on the 3rd May 2016, with the proceeds to be utilized to fi nance the 2016 State Budget. Separately, the government on the 27th April issued IDR1 trillion (US$75.6 million)-worth of sovereign Sukuk consisting of one series of non-tradable facility (SDHI 2019C) via a private

placement. The Sukuk, which utilize the Ijarah Al-Khadamat structure, were priced at 7.2% per year and will mature on the 27th April 2019.

MalaysiaPerdana Petroleum on the 28th April issued a fi ve-year RM635 million (US$161.86 million) Sukuk facility under its 12-year RM650 million (US$165.69 million) Sukuk Murabahah program, which is guaranteed by Danajamin Nasional, Malaysia’s fi nancial guarantee insurer. United Overseas Bank (Malaysia) is the lead arranger and joint lead manager for the Sukuk Murabahah

program which is rated ‘AAA(fg)’ by RAM Ratings.

Separately, RAM Ratings noted that Malaysia’s Sukuk issuance increased 50.5% to RM22.8 billion (US$5.81 billion) in the fi rst two months of 2016, compared with RM15.1 billion (US$3.85 billion) for the same period last year. It made a signifi cant contribution to global Sukuk issuance fi gures, with the top three Sukuk global issuers in February 2016 all Malaysia-based: Danga Capital (US$2.3 billion), International Islamic Liquidity Management (US$1.3 billion) and the government of Malaysia (US$1.1 billion).

Upcoming sovereign Sukuk

Country Amount Expected date

Oman TBA Second quarter

Hong Kong TBA TBA

Egypt TBA TBA

Iran IRR60 trillion 2016

Nigeria TBA May 2016

Jordan JOD250 million Second quarter of 2016

Pakistan TBA Second quarter of 2016

Egypt TBA 2015/16 fi scal year

Kazakhstan TBA 2016

Kenya TBA 2016

South Africa TBA 2016

Bangladesh TBA TBA

Hong Kong US$500 million to US$1 billion

TBA

Ningxia Hui Autonomous Region

US$1.5 billion TBA

Senegal TBA TBA

Niger XOF150 billion TBA

Luxembourg TBA TBA

Tunisia US$500 million TBA

UAE TBA TBA

Shandong Province CNY30 billion TBA

Sindh Province US$200 million TBA

Kuwait KWD1 billion 2016

Maldives TBA TBA

Sovereign Sukuk: New players in an evolving global landscape

12© 4th May 2016

ANALYSISIFN COUNTRY ANALYSISEGYPT

Legal and regulatoryBoth Islamic banking and conventional banks fall under the purview of the Central Bank of Egypt; however, compliance of Islamic fi nancial activities is regulated by a decentralized Shariah board relying on internal Shariah boards as there are no specifi c national laws addressing Islamic banking and fi nance in Egypt. While a Sukuk law was passed in 2013 under the Morsi administration, it was never implemented.

In February 2016, it was reported that the Ministry of Finance is working on amendments to the Sukuk laws (which rule out the sale or mortgage of state assets) as the country is seeking to bridge a budget gap of EGP251 billion (US$28.2 billion) with a sovereign Sukuk off ering. The amendments were reportedly submitt ed to Finance Minister Hani Qadri Demian, who is expected to refer them for a vote by parliament. The Sukuk legislation was initially expected to be ready by July 2015 after which, the government was anticipated to follow suit with a US dollar-denominated Sukuk — that, however, did not materialize. The government is anticipated to tap the Islamic debt capital market in the 2015/16 fi scal year. There are also no formal corporate governance instructions by the Central Bank for the Islamic banking industry.

Banking and inanceDespite the absence of an Islamic banking framework, Shariah banking products are made available by fully-fl edged Islamic banks (Al Baraka Bank Egypt, Faisal Islamic Bank, Abu Dhabi Islamic Bank Egypt) and Islamic windows of conventional banks such as NBK-Egypt and Ahli United Bank. In fact, the country was among the fi rst in the region to off er Islamic microfi nancing products. United Bank is also reportedly seeking to convert its operations to become a fully-fl edged Islamic bank. The bank’s Islamic portfolio as at the end of 2015 accounted for 60% of the bank’s business. The bank is expected to fl oat an IPO once the Egyptian Exchange has approved its budget.

Al Baraka Bank Egypt plans to launch two new branches in 2016 dedicated to the retail and SME segments in addition to its plans to invest EGP1 billion (US$112.33 million) in SMEs. The bank targets to open three new full branches over the next two years, bringing its total branch network to 34 by 2017, in line with its target of expanding it to 42 by 2020.

According to the Egyptian Islamic Finance Association (EIFA) — which secured an AAOIFI license in August 2015 to conduct accreditation tests for Islamic bankers and auditors — Islamic fi nance transactions in Egypt grew 26% year-on-year in 2015 reaching EGP114 billion (US$12.8 billion). Islamic banking assets currently account for less than 10% of the total banking market; EIFA Chairman Mohamed Al Beltagy expects the fi gure to grow to 15% by 2020.

Faisal Islamic Bank earlier in 2016 secured approval from the Egyptian Financial Supervisory Authority (EFSA) to expand its product suite to include Murabahah real estate fi nancing. According to IFN Correspondent for Egypt, Dr Walid Hegazy, the EFSA’s approval of this structure may signal that the EFSA is willing to consider other forms of Islamic fi nance, but this approval must be viewed in light of the EFSA’s historical tendency to treat fi nancial innovations hesitantly. It remains to be seen if this approval is an anomaly or an opening from the EFSA. The bank also intends to pump EGP200 million (US$22.47 million) into the Central Bank’s low-income mortgage initiative in the upcoming phase of the program.

The Egyptian cabinet in 2016 endorsed a plan to increase the country’s stake in the International Islamic Trade Finance Corporation by 240 shares worth US$2.82 million.

Asset managementThere are 12 Islamic funds in Egypt, according to latest data from the Central Bank of Egypt. These include funds

from United Bank, Banque Misr, Arab Investment Bank, Faisal Islamic Bank and Al Baraka Bank.

TakafulAs with other non-banking fi nancial activities in Egypt, the Takaful/insurance industry is regulated by the EFSA. Takaful windows in Egypt are disallowed, therefore all products are off ered via fully-fl edged Islamic insurance operators. However, amendments to the present Insurance Law No 10 is anticipated to incorporate Takaful.

Since its inception in 2002, there are now eight Takaful insurers and three life Takaful operators in Egypt, out of 32 insurance companies; and the number is expected to grow. In February 2015, Misr Insurance Holding was revealed to be in the process of introducing a life Takaful unit, which has received an initial approval of support by the European Bank for Reconstruction and Development according to Amwal Alghad.

In early 2016, Abdel-Raouf Kotb, the chairman of the Insurance Federation of Egypt stated that he expected Egypt’s Takaful industry to grow by 20% in 2016. The sector has been achieving over 20% growth yearly from 2009-14, according to EFSA’s latest annual report.

LeasingThere are two fully-fl edged Shariah compliant leasing companies in Egypt (out of 212). In March 2015, the IDB’s Islamic Corporation for the Development of the Private Sector and Arab Investment Bank agreed to establish an Islamic leasing company, to be known as Enmaa Leasing Company.

Through amendments to the mortgage laws, new products were introduced to the leasing segment including Ijarah, usufruct, Musharakah and Murabahah, which are expected to deepen not only the leasing market, but also the mortgage industry (via Ijarah).

Egypt: Remaining hopefulThe year 2015 looked to be like a promising year for Islamic fi nance in Egypt. But with the implementation of a Sukuk legislation postponed and sovereign Islamic issuance delayed several times, can the industry continue to be optimistic about Islamic fi nance in Egypt in 2016? VINEETA TAN takes a look at developments over the past 12 months and notes there has been progress despite the seemingly stagnant market.

13© 4th May 2016

ANALYSISIFN SECTOR ANALYSISHUMAN CAPITAL

OverviewThe Finance Accreditation Agency (FAA) estimates that there is currently a shortage of close to 56,000 competent professionals globally, underlining the acute shortage of talents needed to serve the growing needs of the Islamic fi nancial industry. According to a recent report by the Malaysia International Islamic Financial Center (MIFC), approximately one million Islamic fi nance professionals are needed by 2020. Malaysia, for example, needs roughly 22,400 professionals to support the country’s burgeoning Islamic fi nancial sector, representing 40% of the current global shortage. Neighboring Indonesia estimates that it would need 17,000 additional Islamic fi nance practitioners in the near term, while an industry report revealed that companies in the UAE will require more than 8,000 talents trained in Islamic fi nance. A survey conducted by the FAA and IFN in 2014 discovered that 80% of the respondents agreed that the talent pool in the Islamic fi nance industry is insuffi cient to meet the growing needs of the market.

MIFC also noted in its report that evolving regulations and standards to further standardize Islamic fi nance products and development have enhanced the need for more expertise to ensure proper implementation. In addition, intensifying competition on the back of economic uncertainties and the growth of cross-border Islamic transactions have contributed to the strong demand for human capital development in Islamic fi nance.

The internationalization of the Islamic fi nance industry is most certainly poised to contribute greater mobilization and allocation of resources across borders, and this very much calls into att ention the need for world-class human capital development – highly skilled Islamic fi nance professionals, therefore, are urgently needed. In this regard, there is a need to build solid linkages

between industry players and education institutions in order to serve the global Islamic fi nance markets eff ectively, and this can be achieved by enhanced strategic partnerships and collaborations among relevant stakeholders.

InitiativesGlobally, there are approximately 420 institutions off ering courses in Islamic fi nance and over 113 universities off ering Islamic fi nance-related degrees, according to data by The Islamic Corporation for the Development of the Private Sector (ICD), with the UK, Malaysia and the UAE at the top of the list of providers. The ICD developed its Islamic Finance Talent Development Program as a means to address the shortfall in Islamic fi nance human capital in its member countries. The two-year program, which includes a Master’s degree in Islamic fi nance and leadership development at IE Business School, provides participants with on-the-job experience and exposure to diff erent aspects of Islamic fi nance.

Bank Negara Malaysia (BNM) recently began off ering scholarships to eligible Malaysians for postgraduate programs

in Islamic fi nance at INCEIF. The prestigious BNM scholarship provides fi nancial assistance toward the completion of the following degrees: Master in Islamic Finance Practice, Master of Science in Islamic Finance and PhD in Islamic Finance. Maybank has also launched a scholarship program for a Master’s degree in Islamic Finance Practice at INCEIF, highlighting the growing steps taken by fi nancial institutions in supporting the talent development agenda in Malaysia.

Earlier this year, Aafaq Education, a subsidiary of Aafaq Islamic Finance, and the University College of Bahrain entered into a partnership to off er an Executive Master’s degree in Islamic fi nance. In February, the Institute of Finance and Management, the Emirates College of Technology and Continuous Education Center, an Abu Dhabi-based private institution of higher education, collaborated to issue a joint professional diploma in Islamic fi nance course.

In late 2015, the Chartered Institute for Securities and Investment announced that the number of Islamic Finance Qualifi cation exams taken in the Arabian Peninsula has risen over the last 12 months, demonstrating an increased interest in seeking professional qualifi cations in the growing Islamic fi nance industry.

OutlookThe supply and demand mismatch of talents is att ributed partly due to existing candidates not having the appropriate skill sets to function in a globally evolving landscape. As such, various stakeholders from across the discipline, such as banks, consulting fi rms, regulatory bodies, universities, as well as cross-border institutions will need to leverage on each other’s expertise to mold a well-refi ned generation of Islamic fi nance practitioners that would set the course of the industry for years to come, consistent with Shariah principles.

The pressing need for the right match of talents in a fast-growing industry The growth of Islamic fi nance over the years with further product innovation and sophistication has naturally placed a strong demand for talents to serve the industry’s needs. The reality of the situation, however, is that the supply of candidates with the right set of skills in the Shariah compliant fi nance side is severely lacking. DANIAL IDRAKI takes a look at the situation.

Various stakeholders

will need to leverage on each other’s expertise to mold a well-re ined generation of Islamic inance

practitioners

14© 4th May 2016

CASE STUDY

Republic of Indonesia trust certifi cates

US$2.5 billion

29th March 2016

Issuer Perusahaan Penerbit SBSN Indonesia III

Obligor The Republic of IndonesiaSize of issue US$2.5 billionMode of issue BookrunningPurpose The gross proceeds will be

applied by the issuer for the purchase of the assets relating to the series from the Republic. The Republic will use the gross proceeds it receives to meet part of its general fi nancing requirements

Tenor Tranche 1: Five yearsTranche 2: 10 years

Issuance price 100%Profi t rate Tranche 1: 3.4% per year

Tranche 2: 4.55% per yearPayment Semi-annualCurrency US dollarsMaturity date Tranche 1: 29th March 2021

Tranche 2: 29th March 2026Lead managers and bookrunners

CIMB Investment Bank, Citigroup Global Markets, Deutsche Bank AG (Singapore branch), Dubai Islamic Bank, Standard Chartered Bank

Principal advisor

CIMB Investment Bank

Governing law English/Indonesian law for asset-related documents

Legal advisors/counsels

Cliff ord Chance, Assegaf Hamzah & Partners (to the issuer), Allen & Overy, Hadiputranto, Hadinoto & Partners (to the arrangers and dealers)

Listing NASDAQ Dubai and Singapore Exchange Securities Trading

Underlying assets

Ijarah properties and project assets

Rating Moody’s: ‘‘Baa3’S&P: ‘BB+’Fitch: ‘BBB-‘

The government of Indonesia in late March 2016 issued its Islamic papers worth US$2.5 billion in two tranches: a US$750 million fi ve-year facility and a US$1.75 billion 10-year facility — the largest Asian US dollar transaction. Speaking to CIMB Investment Bank, NURUL ABD HALIM brings you the landmark deal.

The Sukuk received exceptional interest from investors across geographies. The US$750 million fi ve-year facility, which was priced at a 3.4% profi t rate, drew investors from the Middle East (42%), Asia (excluding Indonesia) (31%), Europe (15%), the US (2%) and its home country (10%) while the US$1.75 billion tranche with a 4.55% profi t rate was subscribed by investors from the Middle East (28%), Asia (excluding Indonesia) (25%), Europe (22%) and the US (15%). From the institutional side, asset managers grabbed the lion’s share of the issuance size followed by banks, central banks and sovereign wealth funds, insurance and pension funds and private banks.

Testament to its aspirations to become a strong advocate of Islamic fi nance, the Republic has made its mark in the domestic and also the US dollar Sukuk market as a regular and consistent issuer.

In doing so, CIMB IB noted, Indonesia continues to set benchmarks in the global Sukuk arena for other sovereigns and corporates, paving the way for the growth of Indonesia’s Islamic capital markets.

Despite the lower investment grade ratings stamped by international rating agencies, the sovereign faced no challenges in the distribution of this Sukuk given its reputation as a seasoned issuer.

Adopting the Wakalah structure, proceeds from the transaction will be utilized for the issuer to meet part of its general fi nancing requirements. The structure accorded the government with the fl exibility in terms of the choice of the underlying assets for the transaction.

Apart from being Asia’s largest US dollar transaction, the fi fth Sukuk installment was also the largest and the fi rst ever dual-tranche US dollar off ering issued by the Republic under the program.

Indonesia’s 2016 US dollar Sukuk: The irst and largest dual-tranche offering

Shariah advisors

CIMB Islamic Bank, Shariah Advisory Board of Citi Islamic Investment Bank, Standard Chartered Bank Shariah Supervisory Committ ee, Dr Hussein Hamed Sayed Hassan, Shariah Advisor of Deutsche Bank AG (Singapore branch), and the Executive Committ ee of the Fatwa and Shariah Supervisory Board of Dubai Islamic Bank

Structure Wakalah

Investor breakdown

Tranche 1:By typeAsset/fund managers – 40%Banks – 38%Central banks/sovereign wealth funds – 13%Insurance/pension funds – 5%Private banks – 4%

By geographyMiddle East/Islamic – 42%Asia (ex-Indonesia) – 31%Europe – 15%US – 2%Indonesia – 10%

Tranche 2:By typeAsset/fund managers – 59%Banks – 25%Central banks/sovereign wealth funds – 8%Insurance/pension funds – 4%Private banks – 4%

By geographyMiddle East/Islamic – 28%Asia (ex-Indonesia) – 25%Europe – 22%US – 15%Indonesia – 10%

Face value/minimum investment

US$200,000 and integral multiples of US$1,000 in excess thereof

15© 4th May 2016

IFN SECTORCORRESPONDENTS

IFN COUNTRYCORRESPONDENTS

IFN Country CorrespondentsAFGHANISTAN: Dr Alam Khan Hamdard president, Afghanistan Islamic Finance and Consulting Co AUSTRALIA : Dr George Mickhailsenior lecturer, School of Accounting, Economics and Finance, University of Wollongong, Australia BAHRAIN: Dr Hatim El-Tahirdirector of Islamic Finance Knowledge Center, Deloitt e & Touche BANGLADESH: Md Shamsuzzamandeputy managing director, Islami Bank BangladeshBELGIUM: Prof Laurent Marliere, CEO, ISFIN BERMUDA: Belaid A Jheengoordirector of asset management, PwC BRAZIL: Fábio Figueirapartner, Veirano AdvogadosBRUNEI: Dr Aimi Zulhazmi, Islamic fi nance consultant, Draznine Advisory CANADA: Jeff rey S Grahampartner, Borden Ladner Gervais CHINA: Abdullah Hanpartner, Al-Sadiq ConsultingEGYPT: Dr Walid Hegazymanaging partner, Hegazy & AssociatesFRANCE: Kader Merbouhco-head of the executive master of the Islamic fi nance, Paris-Dauphine UniversityHONG KONG: Amirali Bakirali Nasirchairman, The Law Society of Hong Kong working party on Islamic fi nanceINDIA: H Jayeshfounder partner, Juris CorpINDONESIA: Farouk A AlwyniCEO of Alwyni International Capital and the chairman of Centre for Islamic Studies in Finance Economics and Development IRAN: Majid PirehIslamic fi nance expert, Securities & Exchange Organization of Iran IRAQ: Khaled Saqqafpartner and head of Jordan & Iraq offi ces, Al Tamimi & Co ITALY: Stefano Padovani, partner and head of Banking & Finance, NCTM Studio Legale Associato JAPAN: Kaoru Haraguchifounding att orney, Haraguchi International Law Offi ceJORDAN: Nafi th Al Hersh Nazzal, Islamic banking specialist, certifi ed fi nancial and investment advisorKAZAKHSTAN: Timur Rustemov, deputy chairman, association for development of Islamic fi nanceKENYA: Mona K Doshi senior partner, Anjarwalla & Khanna AdvocatesKOREA: Yong-Jae Chang, partner, Lee & KoKUWAIT: Alex Saleh, partner, Al Tamimi & CoLEBANON: Johnny El Hachempartner – corporate, Bin Shabib & Associates LUXEMBOURG: Said Qaceme, senior manager of Advisory & Consulting, Deloitt e Tax & Consulting MALAYSIA: Ruslena Ramlihead, Islamic fi nance, RAM Rating ServicesMALDIVES: Aishath Muneezadeputy minister, Ministry of Islamic Aff airs, MaldivesMALTA: Reuben Butt igiegpresident, Malta Institute of ManagementMAURITIUS: Mohammad Akshar MaherallyDirector (taxation), International Financial Services MOROCCO: Ahmed Tahiri Joutimanaging consultant, Al Maali Consulting GroupNEW ZEALAND: Mohamed Nalartrustee and board member, Awqaf New ZealandNIGERIA: Auwalu Ado; Shariah auditor, Jaiz BankOMAN: Muhammad Abdullah DewayaIslamic fi nance scholarPAKISTAN: Muhammad Shoaib Ibrahimmanaging director & CEO, First Habib ModarabaPHILIPPINES: Rafael A Moralesmanaging partner, SyCip Salazar Hernandez & GatmaitanQATAR:Amjad Hussain partner, K&L GatesRUSSIA: Roustam Vakhitovmanaging partner, International Tax AssociatesSAUDI ARABIA: Nabil Issapartner, King & SpaldingSENEGAL: Abdoulaye MbowIslamic fi nance advisor, Africa Islamic Finance Corporation SOUTH AFRICA: Amman MuhammadCEO, First National Bank-Islamic FinanceSINGAPORE: Suhaimi Zainul-Abidin, advisor, 5PillarsSRI LANKA: Imruz Kamilhead of Islamic banking, Richard Pieris Arpico FinanceSWITZERLAND: Khadra Abdullahiassociate, Investment banking, Faisal Private BankSYRIA: Gabriel Oussi,general manager, Oussi Law FirmTANZANIA: Yassir Masoud head, Islamic banking, retail banking, National Bank of CommerceTURKEY: Ali Ceylanpartner, Baspinar & PartnersUAE: Rima Mradpartner, Bin Shabib & Associates UK: Fara Mohammaddirector of Islamic fi nance, Foot Anstey US: Joshua Brockwellinvestment communications director, Azzad Asset ManagementYEMEN: Moneer Saif; head of Islamic banking, CAC BankIFN Correspondents are experts in their respective fi elds and are selected by Islamic Finance news to contribute designated short country reports. For more information about becoming an IFN Correspondent please contact sasikala.thiagaraja@redmoneygroup.com

MALDIVES

By Dr Aishath Muneeza

On the 24th April 2016, Abdulla Jihad, the minister of fi nance and treasury of the Republic of Maldives, visited the capital of Malaysia, Kuala Lumpur, with a delegation on an offi cial trip to seek technical assistance to develop the newly established Maldives Center for Islamic Finance, an entity that was established with the objective of strategizing and promoting Maldives as the hub for Islamic fi nance and the Halal industry in South Asia.

Maldives is a 100% Muslim country but Islamic fi nance is still a new concept in the country. In 2003, when Amana Takaful Maldives started its operations, Takaful was introduced and it took eight years for the country to establish the fi rst Islamic bank which is jointly owned by the government and the Islamic Corporation for the Development of the Private Sector, the private sector arm of the IDB.

The country also established an Islamic capital market framework with their own Shariah screening methodology. The fi rst corporate Sukuk of the country was issued in 2013 by Housing Development Finance Corporation while the government has also issued private Sukuk and Islamic treasury instruments since 2013.

Over the past fi ve years, the growth of Islamic fi nance in the country is commendable as there are now 13 fi nancial institutions off ering Islamic products in the country, refl ecting the demand and practical viability of Islamic fi nance. During Abdulla Jihad’s visit, he held discussions with Bank Negara Malaysia (BNM), Securities Commission Malaysia, Bursa Malaysia, Malaysia International Islamic Finance Center, Maybank Islamic Bank, ZICOlaw, The International Shariah Research Academy for Islamic Finance, INCEIF, Halal Industry Development Corporation, Malaysia External Trade Development Corporation and EXIM Bank Malaysia. He also paid courtesy calls on Muhammad Ibrahim, the

recently appointed governor of BNM; Ahmed Husni Hanadzlah, the second minister of fi nance; and Mustapa Mohamed, the minister of international trade and industry.

During the discussions, Abdulla Jihad invited and welcomed Malaysian Islamic fi nancial institutions to start operations in Maldives and to choose Maldives as the strategic business location for South Asia.

Maldives aspires to become an Islamic fi nance and Halal industry hub in South Asia and is currently developing the infrastructure required. As part of the vision of President Abdulla Yameen Abdul Gayyoom’s government, a fi nancial district in the newly reclaimed land of Hulhumalé will soon be developed, focusing on Islamic fi nance. This visit of Abdulla Jihad was made less than a month after the visit of the Maldivian president, proving the commitment of the country to improve bilateral relations between the two nations.

Dr Aishath Muneeza is the deputy minister of the Ministry of Finance and Treasury in the Republic of Maldives. She can be contacted at muneeza.aishath@gmail.com.

Maldives seeks technical assistance to develop Maldives Center for Islamic Finance

16© 4th May 2016

COUNTRY FEATURE

THE PHILIPPINES

By Rafael A Morales

However, another legislative bill was fi led in the Senate of the Philippines early this year. If enacted, this Senate Bill No. 3150 will become ‘The Philippine Islamic Financing Act of 2016’. Under the proposed law, the BSP is expressly empowered to authorize the establishment of Islamic banks, in addition to Al-Amanah Islamic Investment Bank of the Philippines, which is the only existing Islamic bank in the country. This confi rms and reinforces the power of the BSP under the General Banking Law of 2000 to authorize the establishment of more than one Islamic bank in the Philippines.

Al-Amanah Islamic Investment Bank was formed in 1990 with the phasing out of Al Amanah Bank, which was established more than 40 years ago as the first Islamic bank in the Philippines. Al-Amanah Islamic Investment Bank is being contemplated to be privatized by its current owner, the Development Bank of the Philippines, which in turn is owned by the government of the Philippines. Under the proposed Bangsamoro Basic Law, the Bangsamoro government was supposed to acquire Al-Amanah Islamic Investment Bank.

Islamic banks, under the Senate Bill, can, among others, “carry out fi nancing and joint investment operations by way of [a] Mudarabah partnership, Musharakah joint venture or by decreasing participations, [a] Murabahah purchasing of others on a cost-plus fi nancing arrangement, lease (Ijarah) arrangements, construction and manufacture (Istisnah) arrangements, and other Shariah compliant contracts and structures”.

Further, under the Senate Bill, the BSP may authorize conventional banks “to engage in Islamic banking arrangements, including structures, transactions and practices, through a designated Islamic banking unit within the bank”. In other words, conventional banks can have their respective Islamic banking units or windows without necessarily establishing separate Islamic banks for the purpose. Not only that, foreign Islamic banks will be allowed to establish banking subsidiaries or branches, or acquire domestic banks, in the Philippines. This is in line with the further liberalization of the entry of qualifi ed foreign banks into the banking system of the Philippines under the Republic Act No. 10641.

As articulated in the Senate Bill, it is hoped that the formation of other Islamic banks and the opening of Islamic banking units within conventional banks can “promote and accelerate the socioeconomic development of the nation” through their participation in “agricultural, commercial and industrial ventures based on the Islamic concept of banking”. In this regard, the BSP will have supervision over the operations of Islamic banks, and, for this purpose, will issue and implement the necessary rules and regulations on the Islamic concept of banking.

In the Senate Bill, the government of the Philippines is mandated “to achieve neutral tax treatment between Islamic banking transactions and equivalent conventional banking transactions”. Toward this end, the Bureau of Internal Revenue will have to issue implementing guidelines “conducive to the growth of Islamic banking and fi nance in the country” and, if necessary, “modify applicable taxes on Islamic banking transactions”.

It is also notable that, under the Senate Bill, the BSP is enjoined “to formulate

rules and regulations for the extension of fi nancial facilities to Islamic banks” while the Philippine Deposit Insurance Corporation is allowed to “extend fi nancial assistance to an Islamic bank determined to be in danger of closing” so as “to maintain fi nancial stability in the economy”.

The enactment of the Senate Bill, if it comes to fruition, will be a most welcome development, as public and private entities in the Philippines are eager to raise capital through Islamic fi nance. For example, the National Home Mortgage Finance Corporation has announced its plans to issue Sukuk this year.

Meanwhile, the Philippine Stock Exchange (PSE) has completed its quarterly screening of its Shariah compliant equity securities. The PSE previously published a list of companies that passed the AAOIFI Shariah rulebook, with a view to diversifying the investment base of the PSE. As of the 31st March 2016, the list has 57 Shariah compliant securities compared with 54 at the end of 2015.

It has been reported that the Peace and Equity Foundation, together with Al Qalam Institute of Ateneo de Davao University, Cordaid and the World Bank, will be preparing a 21-year roadmap to achieve a fully-compliant Islamic fi nance industry in the Philippines.

The roadmap will be divided into three stages or milestones of seven years each. The fi rst phase will focus on an information drive to raise public awareness of Islamic fi nance, and promote capacity-building of pertinent stakeholders in that fi eld.

Rafael A Morales is the managing partner of Morales Justiniano Peña & Lumagui. He can be contacted at ramorales@primuslex.com.

Philippines continues to foster Islamic inance developmentThe anticipated passage of the Bangsamoro Basic Law, which was to be the legislative charter of the autonomous region in southern Philippines, did not materialize. The enactment of that law would have boosted Islamic banking and fi nance in the Philippines, as the Bangko Sentral ng Pilipinas (BSP), the Department of Finance and the National Commission on Muslim Filipinos were mandated therein to “jointly promote the development of an Islamic banking and fi nance system, to include among others the establishment of a Shariah Supervisory Board.” RAFAEL A MORALES explores.

17© 4th May 2016

SECTOR FEATURE

HUMAN CAPITAL

By Stuart Hutt on

While training in their London Head Offi ce, we were visited early one day by the then CEO of the company who asked us all a simple question: “Who is more important, the client or the candidate?” He must have done this many times and probably as before, everyone put their hands up and said the ‘client’, as without these, there would be no jobs and no fees.

However, he quickly corrected us. Without candidates, we have no one to off er our clients. In fact, if you have a high-quality candidate, your client will fi nd them a role and so follows the fee!

That exchange has stuck with me through all my time as a recruiter, a candidate and more recently a client. As I now, more than ever, recognize that it is good people that make a good company and great people that make a great one.

So how does this relate to the state of human capital within the Islamic fi nance sector?

Over the past few years, I have had the opportunity to spend time and work with many talented individuals in diff erent parts of the world. Some of these are

recent graduates and their common issue is around how they obtain their perfect role. Their shared frustration is that these positions are just not out there. Many high-quality candidates fi nd themselves in other parts of the industry, gaining varied experience in the hope that this will be their ticket back one day into their dream job. For many, that still remains a dream, not a reality.

Being someone who originally trained from outside of the Islamic fi nance industry, I can envisage the frustration this can cause. More worrying is that an industry in such an early stage of its development is losing so much of its talent, maybe never to return.

However, maybe this is where the change could occur. If such talent is fostered, developed and retained, it could be this that evolves the industry into providing the positions for those eager to work.

The most obvious choice is looking at how larger companies with departments and divisions dedicated to supporting the marketplace may off er clearer career paths. When developing employees in larger organizations, it is accepted that not all will stay. So how does this fl ow off er the chance for new talent to be part of this? It may be some initiatives between fi rms will support this retention, not in one single company, but around the industry.

The other obvious choice is the creation of SMEs which rely heavily on those with high passion, varied skills and an ability to deliver on strategy, usually before breakfast. However, these roles do not always come with suffi cient pay packages and stable environments.

On the basis of my two previous paragraphs, it would be foolish of me to off er options on a solution; in reality, it is fairly obvious there is not one single answer. So this is where my fi rst thought comes into play. We do not necessarily need lots of companies,

with lots of vacancies, trying to att ract the best candidates. This will not primarily result in development of the talent within our part of the wider industry, but is more likely to create suspicion and stronger competition from the conventional areas of the market.

My next thought is that we should work to grow new and existing talent, providing the industry with the very best people to take on roles with small, medium or large organizations, scoping out a route to then developing the industry itself. There is so much talk about the thousands of skilled individuals that will be needed over the next few years, but this will only happen if talent is clearly defi ned, supported and grown.

The report from Simply Sharia Human Capital at the end of 2015 highlighted eight clear talent development goals. These goals picked up on areas covering education, development and participation, all areas that are part of the patt ern for new and existing talent in the industry to scope out a career. They also cover data-building and human resources involvement, which will be essential to establishing a stable environment. They also highlight the need to support entrepreneurship, recognizing the role it has to play.

What is incredibly noticeable is that the focus lies with the people, the employees, the skilled workers, and ultimately these are the candidates. If we focus on supporting them, ultimately the industry will develop and grow, as they will seed the ideas, start the companies, bring strategy to larger organizations and in the end deliver into an industry with great opportunities. All this may be before breakfast still!

Stuart Hutt on is the chief investment offi cer of Simply Ethical. He can be contacted at sh@simplyethical.com.

The focus lies with

the people, the employees, the skilled workers, and ultimately these are the candidates

How do we attract and develop human capital into the Islamic inance industry, before breakfast?It was a litt le over 20 years ago that STUART HUTTON took his fi rst tentative steps into working in recruitment, with a well-known UK brand which had established themselves as a leading provider of staffi ng needs, and in this article he looks at ways to att ract and develop human capital into the Islamic fi nance industry.

18© 4th May 2016

ASSET MANAGEMENT FEATURE

SUKUK

By Ahmad Najib Nazlan

A few relevant global Sukuk indices have shown that the sell-off in the Sukuk market was overdone toward the fi rst US rate hike in December last year and started to rationalize right after the actual hike. The rationalization or reversal came in strongly as early as January 2016 as certain economic data started to show further weaknesses and also due to the eventual acceptance by Federal Reserve (FED) members themselves that the four-time rate hike in 2016 may not be doable and have instead now targeted a two-time hike. We expect the recovery in the Sukuk market to continue as the threat of a steep increase in the US rate is dissipating fast.

US dollar strengtheningThe US FED is now expecting to make only two quarter-point interest rate rises this year, bringing its forecast closer in line with market expectations. The Fed previously, before the fi rst rate hike in December 2015, had forecasted four rate rises. This reassessment indicates that the global fi nancial and economic turmoil in the fi rst two months of 2016 have had a big impact on the way the FED is thinking and refl ects the fl exibility of the FED in manoeuvring the current volatile market data.

The data dependence clause for actions by the FED has become a permanent feature in past years and may also continue for a while longer. Ongoing strength in the US job market could give the FED justifi cation for multiple interest rate increases this year. Nevertheless, our inclination is toward lower interest rates for a longer period as we believe that newer jobs created in the US market do not really translate into meaningful wage growth, which could spur infl ation to justify multiple rate hikes beyond two times this year. Based on our view of the lower interest rates for a longer period, we are cautiously optimistic for the Sukuk market, especially on credits as

Sukuk outlook The hype surrounding the interest rate increase in the US and the strengthening of the US dollar has, to a certain extent, been a bit overdone and both have already been priced into global Sukuk in 2015. AHMAD NAJIB NAZLAN writes.

Chart 1: Dow Jones Sukuk Index

160

155

150

145

140

135

130

125

157.54

Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar 2011 2012 2013 2014 2015 2016

Last price 157.54High on 03/22/16 157.63Average 144.27Low on 03/28/16 127.19

_

__

Source: Bloomberg

Chart 2: Global Sukuk ex-MYR

103

102.5

102

101.5

101

100.5

100

102.780Last price 102.780High on 03/23/16 102.848Average 101.511Low on 12/31/14 100.000

_

__

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar2015 2016

Source: Bloomberg

Chart 3: FED rate expectation based on CME Group 30-Day Fed Fund futures prices as at the 4th April 2016

Source: CME Group

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

1.5

1.25

1

0.75

0.5

27/0

4/20

16

15/0

6/20

16

27/0

7/20

16

12/0

9/20

16

02/1

1/20

16

12/2

1/20

16

19© 4th May 2016

ASSET MANAGEMENT FEATURE

well as local currencies for the alpha generation. We have seen a severe sell-off of certain currencies, namely the Indonesian rupiah and the Malaysian ringgit (MYR) in 2015 due to the consensus trade based on the view of an increasing interest rate in the US and the US dollar strengthening. With these two currencies being traded at massive discounts between 10% and 15% to its real eff ective exchange rate (REER), we are quite bullish in these Sukuk currencies. Further, we believe there is no reason for these two economies to increase the rate for 2016 as the current interest rate level is accommodative in spurring economic activities and providing decent growth. Certain forecasters suggest that both economies will cut their rates in 2016, which reinforces our bullish view on Sukuk from these countries.

The Republic of Indonesia has successfully issued an upsized Sukuk facility of US$2.5 billion in March 2016 due to encouraging demand with an orderbook at US$8.5 billion, primarily from Middle Eastern investors, accounting for more than 30% of the total subscription. The strong demand from the Middle East coincides with stabilization in crude oil prices in recent weeks. This issuance together with end-2015 issuance have accounted for 64% of the targeted issuance of US$9.35 billion, ahead of its projection of tapping the international market for 62% of the US$9.35 billion by June 2016. This ‘Baa3/BBB-/BB+’-rated issue also benefi ted from the FED’s decision to slow down the pace of interest rate hikes for 2016.Another notable Sukuk issuance is by Malaysian corporate Sime Darby whose RM2.2 billion (US$562.15 million) perpetual Sukuk facility with a non-call 10-year feature was oversubscribed 1.8 times. Sizeable local currency issuances like this will support the view that market liquidity is still ample in the Sukuk space and the scarcity of new issuances for 2016 will further anchor the value of Sukuk. Global Sukuk issuance in 2015 was at US$14.61 billion, a 27.5% drop from US$20.15 billion in 2014 and the market is expecting an even lower fi gure in 2016, continuing the downward trend of issuance and resulting in oversubscription.

For Malaysia, as the equity market has experienced two years of negative

returns in 2014 and 2015, it is expected to provide decent returns in 2016, which will in turn outperform fi xed income returns. This outperformance may not be very high as the fi xed income market will also benefi t from the immediate yield compression due to smaller rate hike expectations as compared to much higher hikes expected during the fi rst hike in December 2015.

The year 2016 may provide good investment opportunities in both equity and fi xed income as money fl ows back into the country, benefi ting both asset classes, which are relatively cheap compared to their respective historical

valuation. For fi xed income, taking the spread between US Treasury 10-year and Malaysian government Treasury 10-year as guidance, the spread is now hovering above 200bps, whereas the average spread for the past fi ve years was only at 160bps. As for equity, the main gauge FBMKLCI has been trading below its mean valuation for the past two years and we expect it will trade above the mean as market sentiment improves in 2016 and stable oil prices above US$35/barrel provide an upside for Malaysia which uses the Brent oil price of between US$30 and US$35 a barrel.

Current economic turbulence and oil price volatility have negatively impacted the fl ow of funds into Asia as moneys have moved back to the US and developed markets are looking for safe haven assets. Outfl ows also benefi ted the US dollar, where it has strengthened by 9.6% in 2015 as per the US Dollar Index. Local currencies in Asia all underperformed against the US dollar in 2015. Nevertheless, for the fi rst quarter of 2016, we have seen some of the funds fl owing back into Asia, especially after the expectation of a FED rate hike is now halved from what was expected earlier this year.

Ahmad Najib Nazlan is CEO of Maybank Islamic Asset Management. He can be contacted at mam.corpcomms@maybank.com.my.

Continued

Period between December 2014 and December 2015

Chi

na R

EER

Hon

g K

ong

REER

Phili

ppin

es R

EER

Kor

ea R

EER

Sing

apor

e RE

ER

Kor

ea R

EER

Indi

a RE

ER

New

Zea

land

REE

R

Taiw

an R

EER

Thai

land

REE

R

Indo

nesi

a RE

ER

Aus

tral

ia R

EER

Mal

aysi

a RE

ER

1 year change in REER

3.8% 7.5%1.2% 0.7%

-1.9%

0.7%5%

-7.4%

0.3%

-4.4%-1.6%

-5.2%-12.1%

140130120110100908070

31/12/201531/12/2014

Chart 5: Global Sukuk issuance chart

18.3516.50

20.15

14.61

3.15

2012 2013 2014 2015 1Q16

25

20

15

10

5

0

US$ billion

Source: Bloomberg, RHBFIC

20© 4th May 2016

NEWS

DEALSMaldives to issue sovereign SukukMALDIVES: The Maldives is planning a sovereign dollar-denominated Sukuk expected to be issued within the next year, Finance Minister Abdulla Jihad, revealed to IFN. The issuance is part of the Republic’s National Economic Transformation Program and ambition to become the regional hub for Islamic fi nance in South Asia.

High demand for Iranian SukukIRAN: The government of Iran has sold the fi rst batch of its Sukuk Ijarah on the Iran Fara Bourse (IFB), an over-the-counter market for securities and other fi nancial instruments, earlier this week, the Financial Tribune quoted its CEO, Amir Hamouni, as saying. About IRR5 trillion (US$165.51 million)-worth of the Sukuk were sold in less than a second on the IFB’s system due to high demand, according to Amir.

Saudi Aramco’s Sukuk program approvedSAUDI ARABIA: Saudi Aramco’s board of directors has approved the creation of a Saudi Aramco Islamic Financing (Sukuk) program as well as a number of Capital Program expenditure requests, the company announced in its weekly newslett er The Arabian Sun.

1MDB defaults on SukukMALAYSIA: 1Malaysia Development (1MDB) has defaulted on two Sukuk facilities: the 1MDB RM5 billion (US$1.28 billion) Sukuk due 2039 and RM2.4 billion (US$613.26 million) Bandar Malaysia Sukuk due between 2021 and

2024. The sovereign wealth fund said in a statement that the cross defaults were triggered by the default on its US$1.75 billion bond issued in 2012, following missing a US$50.3 million interest payment by the bond guarantor International Petroleum Investment Company.

Boubyan picks banks for meetings with investorsKUWAIT: Boubyan Bank, a Shariah compliant subsidiary of the National Bank of Kuwait, has selected Dubai Islamic Bank, Emirates NBD Capital, HSBC, KFH Capital, Standard Chartered, itself and its parent company to arrange meetings with investors ahead of a potential dollar-denominated Sukuk issue, Reuters reported, citing a document from lead arrangers. Citing a separate document from the leads, the report stated that roadshows were due to start in the UAE on the 1st May before heading to Hong Kong on the 3rd, Singapore on the 4th, London on the 6th, and Zurich and Geneva on the 9th. Last month, the bank’s CEO, Adel Abdul Wahab Al-Majed, announced that it would issue Sukuk worth US$250 million before the end of April.

Indonesia auctions SukukINDONESIA: The government of Indonesia announced on the Ministry of Finance’s website that it has auctioned sovereign Sukuk (SPN-S 04112016 and four project-based Sukuk series) with an indicative target of IDR4 trillion (US$302.4 million) on the 3rd May 2016. Proceeds will be used to fi nance the 2016 State Budget.

Separately, the government on the 27th April issued IDR1 trillion (US$75.6 million)-worth of sovereign Sukuk consisting of one series of non-tradable

facility (SDHI 2019C) via a private placement. The Sukuk, which utilize the Ijarah Al-Khadamat structure, were priced at 7.2% per year and will mature on the 27th April 2019.

Redemption of S Power’s Islamic notes dueMALAYSIA: Special Power Vehicle (S Power)’s redemption of secondary stock under Class B Islamic medium-term notes (IMTN) of up to RM215 million (US$54.94 million) is due on the 5th May, a fi ling with Bank Negara Malaysia shows. There will be no payment under the stock, however, due to the distribution restriction grounds in accordance to Clause 9.1.2 (I)(b) of the trust deed. The redemption of stocks under the Class A IMTN of up to RM800 million (US$204.42 million), meanwhile, is due and payable on the 19th May.

OJK encourages issuance of EBA ShariahINDONESIA: Otoritas Jasa Keuangan (OJK) has opened the possibility for the issuance of Islamic asset-backed securities (EBA Shariah) including in the form of a participant lett er (EBA Shariah-SP), according to Republika.co.id. Quoting Nurhaida, CEO of OJK’s Capital Market Supervision Department, the regulator last year prepared a separate regulation on EBA Shariah as one of six Islamic capital market regulations; however, it has yet to receive any registration statements of EBA Shariah from industry players including Sarana Multgriya Financial (SMF).

Separately, SMF is working to develop an EBA Shariah-SP, based on OJK’s Regulation No. 20/POJK.04/2015 concerning the issuance and requirements of EBA Shariah.

DEAL TRACKER Full Deal Tracker on page 26

EXPECTED DATE COMPANY'S NAME SIZE STRUCTURE ANNOUNCEMENT DATE

TBA Saudi International Petrochemical Company

TBA Sukuk 3rd May 2016

By 2017 Republic of Maldives TBA Sukuk 29th April 2016

TBA Boubyan Bank US$250 million Sukuk 28th April 2016

TBA Saudi Aramco TBA Sukuk 28th April 2016

Third quarter of 2016

Saudia up to SAR5 billion Sukuk 26th April 2016

21© 4th May 2016

NEWS

Perdana Petroleum issues SukukMALAYSIA: Perdana Petroleum on the 28th April issued a RM635 million (US$161.86 million) Sukuk facility under its 12-year RM650 million (US$165.69 million) Sukuk Murabahah program. The fi ve-year paper, according to a statement, is guaranteed by Danajamin Nasional, Malaysia’s fi nancial guarantee insurer. United Overseas Bank (Malaysia) is the lead arranger and joint lead manager for the Sukuk Murabahah program which is rated ‘AAA(fg)’ by RAM Ratings.

Bahrain Bourse lists T-bills and SukukBAHRAIN: Bahrain Bourse on the 25th April announced the listing of 11 short-term Sukuk Ijarah and treasury bills worth BHD742 million (US$1.95 billion), it said in a statement. Issued by the Central Bank of Bahrain at discount rates between 2-2.34%, the listings bring the number of listed treasury bills and short-term Sukuk Ijarah on the bourse to 24.

Sipchem launches Sukuk roadshowsSAUDI ARABIA: Saudi International Petrochemical Company (Sipchem) is set

to meet qualifi ed investors in May 2016 with regards to the potential off ering of a Sukuk facility approved by the board of directors on the 28th March, a bourse fi ling shows. The facility will be a private placement catering solely to sophisticated investors. Riyad Bank and NCB Capital have been appointed as managers of the potential off er, with the number and value of any Sukuk to be off ered to be determined based on market conditions and subject to the Off ers of Securities Regulation issued by the Capital Market Authority.

Manfaat Tetap makes Sukuk paymentMALAYSIA: Manfaat Tetap has made the payment of excess funds amounting to RM31.92 million (US$8.15 million) to Sukukholders on the 29th April under the RM752.24 million (US$192.14 million) Sukuk Mudarabah program. According to an announcement on Bank Negara Malaysia’s website, the payment of excess funds comprises profi t payment C of RM19.15 million (US$4.89 million) being payment of profi t and profi t payment D of RM12.77 million (US$3.26 million) being payment of principal and shall be utilized to partially redeem stock DY080001.

STSSB to issue ICPMALAYSIA: Sunway Treasury Sukuk (STSSB) is set to raise RM300 million (US$76.63 million) from two series of Islamic commercial papers (ICP) this week, according to an announcement on Bank Negara Malaysia’s website. For the 85th series, a total of RM100 million (US$25.54 million)-worth of ICP will be issued on the 4th May and will mature on the 6th June 2016, whereas for the 87th series, which will mature on the 7th June 2016, the company will issue RM200 million (US$51.09 million)-worth of ICP on the 6th May. Both the facilities carry a rating of ‘MARC-1IS’.

AFRICABoG revokes Islamic banking licenseGHANA: A provisional Islamic banking license granted to Makkah, a Saudi-based fi nancial institution, has been revoked by the Bank of Ghana (BoG) after the fi nancier failed to meet key requirements for the granting of a full operation license on two occasions, according to News Ghana quoting sources familiar with the matt er.

ASIADanamon Syariah to add more Islamic branchesINDONESIA: Danamon Syariah, the Shariah business arm of Bank Danamon, is planning to increase the number of its branches that are able to facilitate Islamic transactions, according to Republika.co.id. As of the fi rst quarter of 2016, Danamon Syariah has 14 branches. Herry Hykmanto, the director of the business unit of Danamon Syariah, was quoted as saying that due to the growth of funds exceeding that of fi nancing, the excess funds can be placed in Sukuk, adding that Danamon Syariah also has plans to issue Sukuk which could happen this year.

IAP lists irst ventureMALAYSIA: Shariah compliant Investment Account Platform (IAP) has listed its fi rst venture, Perak Transit, an integrated transportation terminal and public transportation service provider. According to a statement, the investment in Perak Transit will be in the form of a

RM10 million (US$2.56 million) three-year term fi nancing facility expected to yield a 6.5% annual return. Bank Muamalat Malaysia is underwriting the facility.

Allied Bank opens new Islamic branchPAKISTAN: Allied Bank has launched a new Islamic banking branch at Koh-i-Noor road in Faisalabad, which brings the total branches of its Islamic banking group currently operating in 14 cities to 27. According to Pakistan Observer, the bank is aiming to open more new branches in 2016.

Malaysia’s Sukuk issuance increasesMALAYSIA: Malaysia’s Sukuk issuance increased 50.5% to RM22.8 billion (US$5.81 billion) in the fi rst two months of 2016, compared with RM15.1 billion (US$3.85 billion) for the same period last year, according to RAM in a statement. The increase made a signifi cant contribution to global Sukuk issuance fi gures, with the top three Sukuk global issuers in February 2016

all Malaysia-based: Danga Capital (US$2.3 billion), International Islamic Liquidity Management (US$1.3 billion) and the government of Malaysia (US$1.1 billion).

Join the most active Islamic finance focused group on

Linked-In

Linkedin/ISLAMICFINANCENEWS

22© 4th May 2016

NEWS

GLOBALIDB to inalize infrastructure bank’s structureGLOBAL: The IDB, Turkey and Indonesia intend to fi nalize the structure of their proposed Islamic infrastructure bank within six months, according to Indonesia’s fi nance minister Bambang Brodjonegoro, reported the Jakarta Post. Bambang confi rmed that senior offi cials will be appointed to formulate a governance structure for the planned

entity which is to be co-founded by the three parties.

Sidra completes irst US dealGLOBAL: Saudi Arabian Islamic investment fi rm Sidra Capital has advised on a SAR350 million (US$93.27 million) acquisition of a South Carolina property — the fi rm’s fi rst US real estate transaction. Acting as the deal’s strategic advisor, Sidra Capital said in a press release the transaction will assist it in its future acquisitions. The acquisition was

made by Shariah compliant real estate specialist 90 North Partners.

Consortium eyes DIB’s Jordanian unitGLOBAL: Dubai Islamic Bank (DIB) in a statement revealed that it has received a lett er of intent from a consortium led by Jordan’s Bank Al Etihad for the acquisition of MESC Investment. DIB holds a 40% stake in MESC through its wholly-owned subsidiaries, Petra and Levant One. MESC owns 52% of Jordan Dubai Islamic Bank.

MIDDLE EASTMaisarah expands product suiteOMAN: Maisarah Islamic Banking Services has launched a new Mudarabah personal savings account, known as Maisarah Prize Account, according to Oman Observer. The Islamic window recently opened new branches in Greater Mutt rah, Al Khuwair, Sur, New Salalah and Araqi, bringing its branch network to 10.

SACO procures Islamic inancing facility

SAUDI ARABIA: Saudi Company for Hardware (SACO) signed an Islamic banking facility agreement with Arab National Bank on the 26th April, a bourse fi ling shows. According to the agreement, Arab National Bank will extend a one-year fi nancing facility to SACO amounting to SAR100 million (US$26.65 million) for the purpose of fi nancing its expansion plan and as working capital.

Iranian securities market IRAN: The Central Securities Depository of Iran (CSDI) has issued 24 new trading codes for foreign investors in the year ended the 19th April, bringing the number of foreign investors in Iranian securities to over 575, reported the Financial Tribune, quoting Iranian language Bourse Press. Over the same period, foreign investors bought IRR100 billion (US$3.31 million)-worth of securities; the Iranian fi nancial market is wholly Shariah compliant.

It was also reported that foreign investors prefer to invest in government-guaranteed bonds, particularly Islamic treasury bills; IRR22.5 trillion (US$744.54 million) were sold last year according to

Iran Fara Bourse’s CEO Amir Hamouni. The surge in foreign investment is att ributed to the lifting of international sanctions.

GEMS procures inancing to build new schoolsGLOBAL: GEMS Education, a Dubai-based private education provider, has procured US$250 million in fi nancing to build new schools in the Gulf, reported Bloomberg. Barwa Bank, Emirates NBD, Commercial Bank International and United Arab Bank were among six lenders that provided the three-year fi nancing facility, which was denominated in both the US dollar and dirham with 80% being paid at maturity and the remainder over the life of the fi nancing.

QFB’s listing expands QSE’s depthQATAR: The listing of Qatar First Bank (QFB) on the Qatar Stock Exchange (QSE) has brought the total number of listed companies on the QSE to 44, a bourse fi ling shows. Nasser Abdullah Al Abdul Ghani, the director of the Market Operations and Control Department at the QSE, was quoted as saying that the number of executed transactions amounted to 3,594 totaling 14.18 million traded shares for a total value of QAR214.58 million (US$58.87 million).

Potential GFH-Eshraq collaboration UAE: GFH Financial Group has signed a preliminary lett er of intent with Eshraq Properties for a potential collaboration, in which Eshraq will acquire certain real estate assets of GFH in exchange for shares in Eshraq itself, according to a bourse fi ling. Terms of the agreement will be fi nalized upon approval and due

diligence by Eshraq. Eshraq is listed on the Abu Dhabi Securities Exchange.

DIB plans rights issueUAE: Dubai Islamic Bank (DIB) is planning to raise its issued capital by as much as AED988.44 million (US$269.05 million) to AED4.94 billion (US$1.34 billion) by way of a rights issue, a fi ling with the Dubai Financial Market shows. DIB said the new shares will have an issue price of AED3.2 (87 US cents) per share, refl ecting a nominal value of AED1 (27 US cents) per share and a share premium of AED2.2 (60 US cents).

Mashreq introduces biometric bankingQATAR: Mashreq Qatar, which also provides Islamic banking services, has launched biometric security for its mobile banking app, Snapp, allowing customers to access banking services using their fi ngerprint as password. Aiming to revolutionize Qatar’s banking and fi nancial landscape, Niranjan Mendonca, Mashreq Qatar’s head of retail, was quoted in a statement as saying that 95% of all customer interactions with the bank are now carried out online.

SIB’s syndicated facility oversubscribedUAE: Sharjah Islamic Bank (SIB) has completed a medium-term US$265 million syndicated Murabahah fi nancing facility, according to a press statement. The size of the three-year facility was increased to US$265 million from the initial target of US$200 million due to strong support and oversubscription. ABC Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital and Noor Bank were the initial mandated lead arrangers and bookrunners for the facility.

23© 4th May 2016

NEWS

ASSETMANAGEMENTManulife Indonesia launches online mutual fund platformINDONESIA: Manulife Aset Manajemen Indonesia, which launched US dollar-denominated Shariah off shore mutual

funds back in February, has launched an online platform for mutual fund transactions in Bandung, West Java. The online platform, known as klikMAMI, is Indonesia’s fi rst fully online mutual fund transaction solution, where users can perform all transactions including account registrations and investing in mutual funds.

RESULTSNational Bank of FujairahUAE: National Bank of Fujairah recorded a 0.7% year-on-year increase in net profi t for the January to March 2016 period to reach AED150.5 million (US$40.96 million). The bank noted in a statement that net interest income and net income from Islamic fi nancing and investment activities grew 9.2% while loans and advances and Islamic fi nancing receivables were up 5.9% to AED20.8 billion (US$5.66 billion). Customer deposits (both conventional and Islamic) accrued 25.4% year-on-year to AED23.1 billion (US$6.29 billion).

Dubai Islamic BankUAE: Dubai Islamic Bank (DIB) saw its net profi t expand by 18% to over AED1 billion (US$272.19 million) for the fi rst three months of 2016 compared to AED850 million (US$231.36 million) achieved a year earlier. DIB noted in a statement that total assets increased by 10% to AED164.9 billion (US$44.88 billion) while Sukuk investments stood at AED21.1 billion (US$5.74 billion), up 5% compared with AED20.1 billion (US$5.47 billion) at the end of 2015.

Bank ABCBAHRAIN: Bank ABC, the parent bank of ABC Islamic, reported a 21% decline in net profi t, att ributable to the shareholders of the parent, to US$41 million for the fi rst quarter of 2016 on the back of deterioration in economic conditions and a stronger US dollar against the domestic currency. According to a statement, the group’s total assets at the end of the fi rst quarter of 2016 reached US$29.2 billion.

Maybank IndonesiaINDONESIA: Maybank Indonesia’s Shariah banking unit posted a net profi t of IDR125 billion (US$9.45 million) for the fi rst quarter of 2016, a 73.8% year-on-

year growth compared to IDR72 billion (US$5.44 million) in the same quarter last year, its fi nancial statement shows. Total Shariah banking fi nancing grew by 25.4% to IDR9.3 trillion (US$703.08 million) while Shariah deposits rose 70.1% to IDR7.8 trillion (US$589.68 million). Overall, Maybank Indonesia posted a profi t after tax and minority interest of IDR444 billion (US$33.57 million) for the quarter under review, a 73.3% year-on-year growth from IDR256 billion (US$19.35 million) in the fi rst quarter of 2015.

First Gulf BankUAE: First Gulf Bank’s net profi t for the fi rst quarter of 2016 declined 6% year-on-year to AED1.33 billion (US$362.01 million) from AED1.42 billion (US$386.51 million), its fi nancial statement shows. Earnings per share stood at AED0.29 (7.89 US cents) compared with AED0.31 (8.44 US cents) in the fi rst quarter of 2015 while its interest expense and Islamic fi nance expense were 34.9% higher at AED554.09 million (US$150.82 million) compared with AED410.64 million (US$111.77 million) for the similar period last year. The bank off ers Islamic banking services through Siraj.

Meezan BankPAKISTAN: Meezan Bank registered a profi t after tax of PKR1.34 billion (US$12.68 million) for the fi rst quarter of 2016, a slight increase of 2.3% year-on-year from the PKR1.31 billion (US$12.39 million) the bank posted in the fi rst quarter of last year. According to a statement, the bank’s deposits increased by 20% to PKR469 billion (US$4.44 billion), while its fi nancing portfolio grew by 37% to PKR201 billion (US$1.9 billion) compared with the corresponding period last year.

Union National BankUAE: Union National Bank (UNB), which owns Shariah compliant Al Wifaq Finance, posted a net profi t of

IFN Sector CorrespondentsCROSS-BORDER FINANCINGFara Mohammad, director of Islamic fi nance, Foot Anstey

CAPITAL MARKETS : Suhail Ahmad, CEO, Hikmah Capital Corp

DERIVATIVESSuhaimi Zainul - Abidin, treasurer for Gulf-Asia Shariah Compliant Investment Association and advisor to 5Pillars

GLOBAL ECONOMIC OUTLOOKTariq Alrifai, expert, Islamic investment products and market trends

LAW (EUROPE):Ayhan Baltaci, att orney at law, Bereket & Baltaci Law Firm

LAW (MIDDLE EAST) Bishr Shiblaq, head of Dubai offi ce, Arendt & Medernach

LEASING : Youssef Aboul-Naja, Ijarah specialist, a supranational banking institution

MERGERS & ACQUISITIONS : Tushar Garg, associate, bulge bracket investment bank MICROFINANCE (ASIA):Dr Mahmood Ahmed, executive vice-president and director training, Islami Bank Training and Research AcademyMICROFINANCE (AFRICA): Mansour Ndiaye, director of microfi nance, Assistance and Consulting for DevelopmentPRIVATE BANKING & WEALTH MANAGEMENT: Thomas Woods, product development, wealth management, The Islamic Bank of Asia

PRIVATE EQUITY & VENTURE CAPITAL : Arshad Ahmed, partner, Elixir Capital

PROJECT & INFRASTRUCTURE FINANCEAnthony Coleby, head of corporate commercial department, Said Al Shahry Law Offi ce (SASLO) REAL ESTATEPhilip Churchill, founder partner, 90 North Real Estate PartnersREAL ESTATE (MIDDLE EAST): Yahya Abdulla, head of capital markets — Middle East, Cushman & Wakefi eldREGULATORY ISSUES (ASIA)Intan Syah Ichsan , chief operating offi cer, Samuel Aset ManajemenREGULATORY ISSUES (MIDDLE EAST): Mohammad Abdullah Malik Dewaya, head of Shariah compliance and audit, Maisarah Islamic Banking ServicesRETAIL BANKING : Chowdhury Shahed Akbar, offi cer, Southeast Bank, Bangladesh.

RISK MANAGEMENT : Dr Ken Baldwin, CEO, Islamic Financial Analytics

SECURITIES & SECURITIZATION : Nidhi Bothra, executive vice-president, Vinod Kothari Consultants

STOCK BROKING & TRADING : Athif Shukri, research analyst, Adl Capital

STRUCTURED FINANCE:John Dewar, partner and head of Islamic fi nance, Milbank, Tweed, Hadley & McCloySUKUK Anthony Coleby, head of corporate commercial department, Said Al Shahry Law Offi ce (SASLO)

SYNDICATED FINANCEDamir Galiev, portfolio manager, AK BARS Bank

TAKAFUL & RE-TAKAFUL : Dr Sutan Emir Hidayat, assistant professor and academic advisor for Islamic fi nance, University College of BahrainTAKAFUL & RE-TAKAFUL (AFRICA):Uwaiz Jassat, acting head of Islamic banking, Absa Islamic BankingTAKAFUL & RE-TAKAFUL (EUROPE): Ezzedine Ghlamallah, director, Solutions Insurance and Islamic Finance in France (SAAFI)TRADE FINANCEAnthony Coleby, head of corporate commercial department, Said Al Shahry Law Offi ce (SASLO)TREASURY PRODUCTS : Nafi th Al Hersh Nazzal, Islamic banking specialist, certifi ed fi nancial and investment advisor

IFN Correspondents are experts in their respective fi elds and are selected by Islamic Finance news to contribute designated short sector reports. For more information about becoming an IFN Correspondent, please contact sasikala.thiagaraja@redmoneygroup.com

24© 4th May 2016

NEWS

AED450 million (US$122.49 million) for the fi rst quarter of 2016, down 27% year-on-year compared with AED615 million (US$167.4 million) for the similar period last year, according to its fi nancial statement.

Jordan Islamic BankJORDAN: Jordan Islamic Bank posted a profi t after tax of US$16.5 million in the fi rst quarter of 2016, a 3% year-on-year growth from US$16.1 million in the same period last year, according to a statement. The subsidiary of Al Baraka Banking Group saw its total assets increase to about US$5.94 billion at the end of March 2016, a 1.2% growth from US$5.88 billion at the end of 2015.

TAKAFULPIDM completes Takaful levy frameworkMALAYSIA: Perbadanan Insurans Deposit Malaysia (PIDM) or the Malaysia Deposit Insurance Corporation has completed the ‘diff erential levy systems framework for Takaful operators’ that will replace the current fl at rate system, and the new framework is expected to assist in building a more sustainable and resilient Takaful industry, and level the playing fi eld between Takaful operators and conventional insurers, PIDM’s general manager, Rafi z Azuan Abdullah, said in a statement.

Concurrently, PIDM recorded a revenue of RM521.3 million (US$133.2 million) for the fi nancial year ended the 31st December 2015, with a net surplus of RM42.6 million (US$10.89 million). Total funds and reserves, meanwhile, increased to RM2.6 billion (US$664.36 million).

MAA and Solidarity get nod to sell Takaful businessMALAYSIA: MAA Group and Solidarity Group have received the approval from the fi nance minister of Malaysia to dispose of their respective 75% and 25% equity stakes in MAA Takaful to Zurich Insurance Company, a fi ling with the bourse shows.

IFN Investor Forum6th September 2016 Kuala Lumpur

Going forward, to ensure that the broadest and most effective global coverage is achieved, the annual IFN Investors

Forum will alternate between Dubai and Kuala Lumpur. This event will encompass everything related to Islamic

investment, attracting a truly global audience and focusing on both the central issues to the area and also on the

latest developments, trends and innovations across the sector. The wide-ranging program will include multiple and

varied formats and sessions for maximum participation: including a brand new series of issuer case studies.

W: www.redmoneyevents.com | E: emerson.dinesh@redmoneygroup.com | T: 603 2162 7800 ext. 43 | Twitter : #IFNInvestor16

REGISTER FREE NOWwww.REDmoneyevents.com

2016INVESTORFORUM

#IFNInvestor16

EXECUTIVE PARTNERS

RESEARCH PARTNERLEAD MEDIA PARTNER INFORMATION PARTNER

LEAD PARTNER MULTILATERAL STRATEGIC PARTNER

MEDIA PARTNERS

25© 4th May 2016

NEWS

RATINGSMoody’s assigns ‘Ba1’ to EzdanQATAR: Moody’s has assigned a ‘Ba1’ corporate family rating and ‘Ba1-PD’ probability of default rating to Ezdan Holding Group, with a stable outlook on the ratings. According to a statement, the ‘Ba1’ ratings refl ect Ezdan’s leadership in the local residential market in Qatar with a sizeable investment properties portfolio of QAR36.9 billion (US$10.12 billion) as at the end of 2015, and take into account the group’s sizeable equity portfolio which provides an additional source of recurring income. The group raised US$500 million through an Islamic fi nancing facility last October.

Malaysia af irmed at ‘AAA’MALAYSIA: Malaysia’s ‘AAA’ sovereign rating has been affi rmed by MARC, with a stable outlook based on its national scale. The rating agency noted in a statement that the rating refl ects its opinion on the sovereign’s ability to meet its local currency obligations.

Malaysia’s Sukuk rated ‘A3’ by Moody’sMALAYSIA: Moody’s has assigned a defi nitive ‘A3’ rating to Malaysia’s dual-tranche US dollar-denominated global Sukuk worth US$1.5 billion, and the rating is at the same level as the long-term local-currency and foreign-currency issuer ratings of the government, according to a statement. Moody’s added that Sukukholders will eff ectively be

exposed to the Malaysian government’s senior unsecured credit risk, although they will not be exposed to the risk of performance of the portfolio assets relating to the certifi cates.

RAM reaf irms Public Islamic Bank’s Sukuk MurabahahMALAYSIA: RAM has reaffi rmed Public Islamic Bank’s respective ‘AAA/Stable’ and ‘AA1/Stable’ ratings of the senior and subordinated Sukuk under the bank’s Sukuk Murabahah program of up to RM5 billion (US$1.28 billion) (2014/2044), according to a statement. It has also concurrently reaffi rmed the bank’s ‘AAA’/Stable/P1’ fi nancial institution ratings.

TIIB’s ratings downgradedYEMEN: Capital Intelligence has downgraded Tadhamon International Islamic Bank (TIIB)’s fi nancial strength rating to ‘B-’ from ‘B’, citing the extremely challenging local operating environment and continued pressure on earnings and profi t, according to a statement. It added that the bank’s long-term foreign currency rating (FCR) has been downgraded to ‘C’ from ‘C+’ due to sovereign risk factors and the operating environment. The short-term FCR is maintained at ‘C’. The outlook on all ratings remains negative.

CBI receives ratingsUAE: Commercial Bank International (CBI), which off ers Islamic fi nancial products, have been accorded a long-term issuer default rating (IDR) of ‘A-’

and a ‘b+’ viability rating by Fitch. According to a statement, the outlook on the IDR is stable.

Bangladesh’s ‘Ba3’ rating re lects stable growthBANGLADESH: Bangladesh’s ‘Ba3’ government bond rating by Moody’s is supported by the country’s stable and strong growth performance and modest debt burden. In a statement, Moody’s, however, noted that low per capita income, persistent fi scal defi cits and a factious political environment pose credit constraints to the country.

SI Capital’s BaIDS reaf irmed at ‘AAA/Stable’MALAYSIA: RAM has reaffi rmed SI Capital’s RM167 million (US$42.66 million) Bai Bithaman Ajil Islamic debt securities (BaIDS) at ‘AAA/Stable’, according to a statement. The reaffi rmation refl ects the strength of agreements which govern concession payments from the Sarawak state government to SI Capital, RAM noted.

Pakistan’s rating re lects structural reformsPAKISTAN: Pakistan’s ‘B3’ issuer rating refl ects the strengthening growth and progress on structural reforms against a relatively high government debt burden and political risks, according to Moody’s. In a statement, Moody’s said that its assessment of Pakistan’s moderate economic strength encompasses the sovereign’s very low per capita incomes and the large size of its economy.

MOVESAl-Madina for Finance and InvestmentKUWAIT: Shariah compliant Al-Madina for Finance and Investment has appointed Yousuf Mousa Alabdallah Alabdelrazak as the company’s new CEO, according to a fi ling with the Dubai Financial Market.

Lembaga Tabung HajiMALAYSIA: Lembaga Tabung Haji, Malaysia’s pilgrimage fund, has appointed current deputy Johan Abdullah as the new group managing director cum CEO, eff ective the 1st July

2016, according to a statement. Johan, previously the CEO cum managing director of BIMB Holdings, will assume the duties of acting CEO from the 16th May, taking over from Ismee Ismail.

London Central PortfolioUK: The London Central Portfolio, a Central London property fund and asset management specialist which also manages Shariah compliant London Central Apartments III, has appointed former FTSE 250 chairman Richard Crowder as a non-executive director of its quoted residential funds, according to a statement.

Receive all the latest news via the

No.1 Islamic fi nance based feed

26© 4th May 2016

DEAL TRACKER

Expected date Company's name Size Structure Announcement DateTBA Saudi International

Petrochemical Company TBA Sukuk 3rd May 2016

By 2017 Republic of Maldives TBA Sukuk 29th April 2016

TBA Boubyan Bank US$250 million Sukuk 28th April 2016

TBA Saudi Aramco TBA Sukuk 28th April 2016

Third quarter of 2016 Saudia up to SAR5 billion Sukuk 26th April 2016

TBA Neelum Jhelum Hydropower Company

PKR100 billion Sukuk 25th April 2016

TBA Government of Malaysia US$1.5 billion Sukuk 21st April 2016

By 2017 BRI Syariah TBA Sukuk 21st April 2016

First half of 2016 Bank Maybank Syariah IDR700 billion Sukuk 21st April 2016

TBA UEM Sunrise RM2 billion Sukuk 21st April 2016

First half of 2016 Ezdan Holdings Group US$500 million Sukuk 13th April 2016

TBA PRAN Foods BDT1 billion Sukuk 11th April 2016

TBA Government of Kuwait KWD2 billion Sukuk 5th April 2016

2016 Bank Syariah Mandiri IDR1 trillion Sukuk 5th April 2016

Before end of April Qatar International Islamic Bank QAR1 billion Sukuk 31st March 2016

TBA Government of Pakistan PKR80 billion Sukuk Ijarah 22nd March 2016

Apr-16 Boubyan Bank US$250 million Sukuk 22nd March 2016

TBA Qatar International Islamic Bank QAR1 billion Sukuk 11th March 2016

Second quarter of 2016 Government of Oman TBA Sukuk 9th March 2016

2016-17 Sarana Multigriya Finansial IDR200 billion Sukuk 4th March 2016

TBA Kuveyt Turk TRY1.85 billion Sukuk 1st March 2016

TBA Ziraat Bank (Participation Unit) TRY1.5 billion Sukuk 1st March 2016

TBA Hong Kong TBA Sukuk 1st March 2016

TBA Cahya Mata Sarawak RM1 billion Sukuk Ijarah 22nd February 2016

Second quarter of 2016 Bank Albilad SAR1-2 billion Sukuk 11th February 2016

TBA Saudi Electricity Company US$2.5 billion Sukuk 16th February 2016

2016 Kuwait Finance House TBA Sukuk 1st February 2016

TBA Oman Telecommunications US$130 million Sukuk 28th January 2016

May-16 Government of Nigeria TBA Sukuk 28th January 2016

March-April 2016 Government of Qatar TBA Sukuk 26th January 2016

2017 Government of Kenya TBA Sukuk 26th January 2016

TBA Tenaga Nasional US$3 billion Sukuk 8th January 2016

TBA Toprak Mahsulleri Ofi si up to TRY600 million Sukuk 7th January 2016

First quarter of 2016 Government of Egypt TBA Sukuk 7th December 2015

TBA Samalaju Industrial Port up to RM950 million Sukuk Murabahah 27th November 2015

TBA WAPDA PKR144 billion Sukuk 26th November 2015

TBA WAPDA PKR100 billion Sukuk 26th November 2015

TBA Widad Capital RM120 million Sukuk Murabahah 13th November 2015

TBA Hascol Petroleum PKR2 billion Sukuk 9th November 2015

TBA Emirates Airline US$500 million-US$1 billion

Sukuk 9th November 2015

TBA CIMB Islamic RM5 billion Sukuk 6th November 2015

TBA MMC Corporation RM1.5 billion Sukuk Murabahah 13th October 2015

TBA Country Garden Real Estate RM1.5 billion Sukuk Murabahah 6th October 2015

First quarter of 2016 National Home Mortgage Finance Corp

PHP2 billion Sukuk 29th September 2015

TBA HNA Group US$150 million Sukuk 11th September 2015

TBA Turkiye Finans TRY1.5 billion Sukuk 1st September 2015

27© 4th May 2016

REDMONEY SHARIAH INDEXES

SAMI Halal Food Participation (All Cap) 6 months

REDmoney Asia ex. Japan 6 Months REDmoney Europe 6 Months

REDmoney GCC 6 Months REDmoney Global 6 Months

REDmoney MENA 6 Months REDmoney US 6 Months

1550

1690

1830

1970

2110

2250

May-2016Apr-2016Mar-2016Feb-2016Jan-2016Dec-2015

All Cap Large Cap Medium Cap Small Cap

450

860

1270

1680

2090

2500

MayAprMarFebJanDec700

800

900

1000

1100

1200

MayAprMarFebJanDec

All Cap Large Cap Medium Cap Small Cap

450

620

790

960

1130

1300

MayAprMarFebJanDec

All Cap Large Cap Medium Cap Small Cap

680

984

1288

1592

1896

2200

MayAprMarFebJanDec

All Cap Large Cap Medium Cap Small Cap

400

550

700

850

1000

1150

MayAprMarFebJanDec

All Cap Large Cap Medium Cap Small Cap

800

1090

1380

1670

1960

2250

MayAprMarFebJanDec

All Cap Large Cap Medium Cap Small Cap

28© 4th May 2016

REDMONEY SHARIAH INDEXES

For further information regarding REDmoney Indexes contact:

Andrew MorganManaging Director, REDmoney Group

Email: Andrew.Morgan@REDmoneygroup.comTel +603 2162 7800

RED

REDmoney Global Shariah Index Series

REDmoney Global Shariah Index Series (All Cap) 6 Months REDmoney Global Shariah Index Series (Large Cap) 6 Months

REDmoney Global Shariah Index Series (Medium Cap) 6 Months REDmoney Global Shariah Index Series (Small Cap) 6 Months

Utilities2%Telecomunication Services

2%

Technology14%

Basis Materials15%

Non-CyclicalConsumer Goods Services

7%

Energy8%

Financials4%

Healthcare11%

Industrials22%

Consumer Goods Services15%

REDmoney Global Shariah

Equities are considered eligible for inclusion into the REDmoney Global Shariah Index Series only if they pass a series of market related guidelines related to minimum market capitalization and liquidity as well as country restrictions.

Once the index eligible universe is determined the underlying constituents are screened using a set of business and fi nancial Shariah guidelines.

The REDmoney Global Shariah Index Series powered by IdealRatings consists of a rich subset of global listed equities that adhere to clearly defi ned and transparent Shariah guidelines defi ned by Shariyah Review Bureau in Jeddah, Saudi Arabia.

The REDmoney Shariah Indexes provides Islamic investors with an accurate and Shariah-specifi c equity performance benchmark with optimized compliance credibility due to the intensive research conducted to ensure that index constituents do not confl ict with the defi ned Shariah requirements.

IdealRatings™ is the leading provider of Shariah investment decision support tools to investors globally, including asset managers, brokers, index providers, and banks to empower them to develop, manage and monitor Shariah investment products and Shariah compliant funds. IdealRatings is headquartered in San Francisco, California. For more information about IdealRatings visit: www.idealratings.com

REDmoney Asia ex. Japan REDmoney Europe REDmoney GCC

REDmoney Global REDmoney MENA REDmoney US

450

640

830

1020

1210

1400

MayAprMarFebJanDec400

570

740

910

1080

1250

MayAprMarFebJanDec

REDmoney Asia ex. Japan REDmoney Europe REDmoney GCC

REDmoney Global REDmoney MENA REDmoney US

500

850

1200

1550

1900

2250

MayAprMarFebJanDec

REDmoney Asia ex. Japan REDmoney Europe REDmoney GCC

REDmoney Global REDmoney MENA REDmoney US

500

890

1280

1670

2060

2450

MayAprMarFebJanDec

REDmoney Asia ex. Japan REDmoney Europe REDmoney GCC

REDmoney Global REDmoney MENA REDmoney US

29© 4th May 2016

EUREKAHEDGE FUNDS TABLES

Comprehensive data from Eurekahedge will now feature the overall top 10 global and regional funds based on a specifi c duration (yield to date, annualized returns, monthly returns), Sharpe ratio as well as delve into specifi c asset classes in the global arena – equity, fi xed income, money market, commodity, global investing (which would focus on funds investing with global mandate instead of a specifi c country or geographical region), fund of funds, real estate as well as the Sortino ratio. Each table covering the duration, region, asset class and ratio will be featured on a fi ve-week rotational basis.

Eurekahedge North America Islamic Fund Index

Inde

x Va

lues

Taking into account funds that have at least 12 months of returns as at the 2nd May 2016Based on 73.93% of funds which have reported March 2016 returns as at the 2nd May 2016

Based on 68.85% of funds which have reported March 2016 returns as at the 2nd May 2016

Top 10 Monthly Returns for Emerging Markets Islamic Funds

Fund Fund Manager Performance Measure Fund Domicile

1 Sanabel HC Securities & Investment 21.43 Egypt

2 Al Baraka Hermes Fund Management 18.93 Egypt

3 Faisal Islamic Bank of Egypt Mutual Hermes Fund Management 14.51 Egypt

4 Al Fursan BRIC Equity Trading Banque Saudi Fransi 10.59 Saudi Arabia

5 Shariah Benchmark Exchange Traded Scheme (Shariah BeES)

Benchmark Asset Management Company 9.89 India

6 CIMB S&P Ethical Asia Pacifi c Dividend ETF CIMB-Principal Asset Management (S) 9.22 Singapore

7 AlAhli Emerging Markets Trading Equity The National Commercial Bank 9.02 Saudi Arabia

8 AlAhli Asia Pacifi c Trading Equity The National Commercial Bank 8.99 Saudi Arabia

9 Meezan Islamic Al Meezan Investment Management 8.31 Pakistan

10 Al Meezan Mutual Al Meezan Investment Management 8.31 Pakistan

Eurekahedge Islamic Fund Index 11.92

Top 10 Monthly Returns for Developed Markets Islamic Funds

Fund Fund Manager Performance Measure Fund Domicile

1 Deutsche Noor Precious Metals Securities - Class A DWS Noor Islamic Funds 11.24 Ireland

2 AlAhli Global Real Estate The National Commercial Bank 9.87 Saudi Arabia

3 Oasis Crescent Global Property Equity Oasis Global Management Company (Ireland) 9.23 Ireland

4 AlAhli Small Cap Trading Equity The National Commercial Bank 8.47 Saudi Arabia

5 Altaira Funds - Ethical Global High Dividend (I) Altaira Capital Partners 8.26 Luxembourg

6 AlAhli Global Natural Resource NCB Capital Company 8.16 Saudi Arabia

7 QInvest GAM Sharia'a GAM International Management 7.25 Cayman Islands

8 The Iman Allied Asset Advisors 7.01 US

9 AlAhli US Trading Equity The National Commercial Bank 6.88 Saudi Arabia

10 Amana Income Saturna Capital 6.51 US

Eurekahedge Islamic Fund Index 8.29

5060708090

100110120130140150160170180190200

Dec

-99

May

-01

Sep-

02

Jan-

04

May

-05

Oct

-06

Feb-

08

Jun-

09

Oct

-10

Mar

-12

Jul-1

3

Nov

-14

Mar

-16

30© 4th May 2016

EUREKAHEDGE FUNDS TABLES

Based on 86.57% of funds which have reported March 2016 returns as at the 2nd May 2016

Contact EurekahedgeTo list your fund or update your fund information: islamicfunds@eurekahedge.comFor further details on Eurekahedge: information@eurekahedge.com Tel: +65 6212 0900

DisclaimerCopyright Eurekahedge 2016, All Rights Reserved. You, the user, may freely use the data for internal purposes and may reproduce the index data provided that reference to Eurekahedge is provided in your dissemination and/or reproduction. The information is provided on an “as is” basis and you assume and will bear all risk or associated costs in its use, and neither Islamic Finance news, Eurekahedge nor its affi liates provide any express or implied warranty or representations as to originality, accuracy, completeness, timeliness, non-infringement, merchantability and fi tness for any purpose.

Eurekahedge Islamic Fund Global Fixed Income Index over the last 5 years Eurekahedge Islamic Fund Global Fixed Income Index over the last 1 year

Perc

enta

ge

Perc

enta

ge

Top 10 Sortino Ratio for ALL Funds by 3 Months Returns

Fund Fund Manager Performance Measure Fund Domicile

1 CIMB Islamic Money Market CIMB-Principal Asset Management 59.37 Malaysia

2 Atlas Pension Islamic - Debt Sub Atlas Asset Management 25.47 Pakistan

3 Meezan Tahaff uz Pension - Debt Sub Al Meezan Investment Management 24.77 Pakistan

4 MNC Dana Syariah MNC Asset Management 17.22 Indonesia

5 KAF Dana al-Iddikhar KAF Investment Funds 14.38 Malaysia

6 Public Islamic Income Public Mutual 11.41 Malaysia

7 Public Islamic Select Bond Public Mutual 6.11 Malaysia

8 Public Islamic Bond Public Mutual 5.64 Malaysia

9 PB Islamic Bond Public Mutual 5.63 Malaysia

10 Kenanga I-Enhanced Cash AIA 4.74 Malaysia

Eurekahedge Islamic Fund Index 0.13

Top 10 Islamic Fund Global Fixed Income by 3 Months Returns

Fund Fund Manager Performance Measure Fund Domicile

1 BNI-AM Dana Syariah BNI Asset Management 4.40 Indonesia

2 MNC Dana Syariah MNC Asset Management 4.22 Indonesia

3 Mega Dana Obligasi Syariah Mega Capital Indonesia 2.91 Indonesia

4 Al-Ameen Islamic Aggressive Income UBL Fund Managers 2.51 Pakistan

5 Public Islamic Bond Public Mutual 2.04 Malaysia

6 CIMB Islamic Sukuk CIMB-Principal Asset Management 2.02 Malaysia

7 PB Islamic Bond Public Mutual 1.77 Malaysia

8 QInvest Sukuk QInvest 1.57 Cayman Islands

9 Manulife Investment As-Saad MAAKL Mutual 1.55 Malaysia

10 Eastspring Investments Dana Wafi Eastspring Investments 1.43 Malaysia

Eurekahedge Islamic Fund Index 0.98

Based on 100.00% of funds which have reported March 2016 returns as at the 2nd May 2016

85

90

95

100

105

110

Mar

-15

Apr

-15

May

-15

Jun-

15

Jul-1

5

Aug

-15

Sep-

15

Oct

-15

Nov

-15

Dec

-15

Jan-

16

Feb-

16

Mar

-16

85

90

95

100

105

110

115

Mar

-11

Aug

-11

Jan-

12

Jun-

12

Nov

-12

Apr

-13

Sep-

13

Feb-

14

Jul-1

4

Dec

-14

May

-15

Oct

-15

Mar

-16

31© 4th May 2016

DEALOGIC LEAGUE TABLES

Global Sukuk Volume by Month Global Sukuk Volume by Quarter

0250500750100012501500

012345

876

5 11 121098764321 321

20162015

US$mUS$bn

Value (US$bn)Avg Size (US$m)

0100200300400500600

02468

1012141618

US$mUS$bn Value (US$bn) Avg Size (US$m)

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 4Q3Q2Q1Q 1Q4Q3Q2Q1Q4Q3Q2Q2011 2012 2013 2014 2015 2016

Most Recent Global Sukuk

Priced Issuer Nationality Instrument Market US$ (mln) Managers21st Apr 2016 DanaInfra Nasional Malaysia Sukuk Domestic market

public issue1,164 RHB Capital, Maybank, CIMB

Group, Hong Leong Financial Group, AmInvestment Bank

20th Apr 2016 Malaysia Sukuk Global

Malaysia Sukuk Euro market public issue

1,500 JPMorgan, HSBC, Maybank, CIMB Group

18th Apr 2016 Kuala Lumpur Kepong

Malaysia Sukuk Domestic market public issue

128 Maybank, CIMB Group

15th Apr 2016 Sarawak Energy Malaysia Sukuk Domestic market public issue

387 RHB Capital, AmInvestment Bank

6th Apr 2016 Hilal Services Saudi Arabia

Sukuk Euro market public issue

300 Mizuho, Standard Chartered Bank, HSBC, Arab Banking Corporation, National Bank of Kuwait, First Gulf Bank, Dubai Islamic Bank, SG Corporate & Investment Banking, CIMB Group, Emirates NBD, Warba Bank, Noor Bank

4th Apr 2016 Putrajaya Holdings Malaysia Sukuk Domestic market public issue

137 Maybank, CIMB Group, AmInvestment Bank

25th Mar 2016 Malaysia Airlines Malaysia Sukuk Domestic market public issue

372 CIMB Group

22nd Mar 2016 Dubai Islamic Bank UAE Sukuk Euro market public issue

500 Standard Chartered Bank, HSBC, Arab Banking Corporation, National Bank of Abu Dhabi, Dubai Islamic Bank, Sharjah Islamic Bank, Emirates NBD

21st Mar 2016 Perusahaan Penerbit SBSN Indonesia III

Indonesia Sukuk Euro market public issue

2,500 Standard Chartered Bank, Deutsche Bank, Dubai Islamic Bank, CIMB Group, Citigroup

16th Mar 2016 Barwa Bank Qatar Sukuk Euro market private placement

250 National Bank of Abu Dhabi

15th Mar 2016 Axiata SPV2 Malaysia Sukuk Euro market public issue

500 Deutsche Bank, HSBC, CIMB Group

11th Mar 2016 Sime Darby Malaysia Sukuk Domestic market public issue

535 Maybank

9th Mar 2016 Gulf Investment Corporation

Kuwait Sukuk Foreign market private placement

109 HSBC, AmInvestment Bank

3rd Mar 2016 IDB Trust Services Saudi Arabia

Sukuk Euro market public issue

1,500 Standard Chartered Bank, JPMorgan, National Bank of Kuwait, Gulf International Bank, Natixis, CIMB Group, Emirates NBD

23rd Feb 2016 Danga Capital Malaysia Sukuk Euro market public issue

750 Standard Chartered Bank, DBS, CIMB Group

18th Feb 2016 ICD Private Sukuk Saudi Arabia

Sukuk Euro market private placement

350 Standard Chartered Bank

17th Feb 2016 Prasarana Malaysia Malaysia Sukuk Domestic market public issue

733 RHB Capital, Maybank, Kenanga Investment Bank, CIMB Group, AmInvestment Bank

15th Feb 2016 Danga Capital Malaysia Sukuk Euro market public issue

360 RHB Capital, AmInvestment Bank

9th Feb 2016 Hilal Services Saudi Arabia

Sukuk Euro market public issue

200 Standard Chartered Bank

8th Feb 2016 Kuveyt Turk Katilim Bankasi

Kuwait Sukuk Euro market public issue

350 HSBC, Kuwait Finance House, Dubai Islamic Bank, Abu Dhabi Islamic Bank, Emirates NBD, Kuwait Projects, QInvest, Noor Bank

32© 4th May 2016

DEALOGIC LEAGUE TABLES

Top 30 Issuers of Global Sukuk 12 MonthsIssuer Nationality Instrument Market US$

(mln)Iss(%)

Managers

1 Perusahaan Penerbit SBSN Indonesia III

Indonesia Sukuk Euro market public issue

4,500 12.8 JPMorgan, HSBC, Dubai Islamic Bank, CIMB Group, Standard Chartered Bank, Deutsche Bank, Citigroup

2 Jimah East Power Malaysia Sukuk Domestic market public issue

2,100 6.0 HSBC, Maybank, CIMB Group

3 DanaInfra Nasional Malaysia Sukuk Domestic market public issue

1,891 5.4 HSBC, RHB Capital, Maybank, CIMB Group, AmInvestment Bank, Hong Leong Financial Group

4 IDB Trust Services Saudi Arabia

Sukuk Euro market public issue

1,836 5.2 Natixis, Standard Chartered Bank, JPMorgan, National Bank of Kuwait, Gulf International Bank, Natixis, CIMB Group, Emirates NBD

5 Malaysia Sukuk Global

Malaysia Sukuk Euro market public issue

1,500 4.3 JPMorgan, HSBC, Maybank, CIMB Group

6 Dubai Islamic Bank UAE Sukuk Euro market public issue

1,250 3.5 Standard Chartered Bank, HSBC, National Bank of Abu Dhabi, First Gulf Bank, Maybank, Dubai Islamic Bank, Arab Banking, Dubai Islamic Bank, Sharjah Islamic Bank, Emirates NBD

7 Prasarana Malaysia Malaysia Sukuk Domestic market public issue

1,192 3.4 RHB Capital, Maybank, Kenanga Investment Bank, CIMB Group, AmInvestment Bank

8 Danga Capital Malaysia Sukuk Domestic market public issue

1,110 3.1 RHB Capital, AmInvestment Bank, Standard Chartered Bank, DBS, CIMB Group

9 National Shipping Co of Saudi Arabia

Saudi Arabia

Sukuk Domestic market public issue

1,040 3.0 JPMorgan, HSBC, Samba Capital

10 Hong Kong Sukuk 2015

Hong Kong

Sukuk Euro market public issue

1,000 2.8 Standard Chartered Bank, HSBC, National Bank of Abu Dhabi, CIMB Group

10 Axiata SPV2 Malaysia Sukuk Euro market public issue

1,000 2.8 Deutsche Bank, CIMB Group, HSBC, Maybank, Bank Mandiri (Persero)

12 Pengurusan Air SPV Malaysia Sukuk Domestic market public issue

924 2.6 Maybank, Bank Islam Malaysia, CIMB Group, RHB Capital

13 Sarawak Energy Malaysia Sukuk Domestic market public issue

774 2.2 RHB Capital, Kenanga Investment Bank, AmInvestment Bank

14 Qatar Islamic Bank Qatar Sukuk Euro market public issue

750 2.1 Standard Chartered Bank, HSBC, Citigroup, QInvest, Barwa Bank, Noor Bank

15 Sultanate of Oman Oman Sukuk Euro market public issue

649 1.8 Bank Muscat

16 Jana Kapital Malaysia Sukuk Domestic market public issue

622 1.8 RHB Capital

17 Rantau Abang Capital

Malaysia Sukuk Domestic market public issue

595 1.7 CIMB Group, AmInvestment Bank, RHB Capital

18 Jambatan Kedua Malaysia Sukuk Domestic market public issue

560 1.6 RHB Capital, Maybank, Kenanga Investment Bank, AmInvestment Bank

19 Sime Darby Malaysia Sukuk Domestic market public issue

535 1.5 Maybank

20 Arab National Bank Saudi Arabia

Sukuk Domestic market public issue

533 1.5 JPMorgan, Deutsche Bank, HSBC, Arab National Bank

21 Emirate of Sharjah UAE Sukuk Euro market public issue

500 1.4 Bank of Sharjah, HSBC, Barclays, Dubai Islamic Bank, Sharjah Islamic Bank, Commerzbank Group

21 Arab Petroleum Investments

Saudi Arabia

Sukuk Euro market public issue

500 1.4 Saudi National Commercial Bank, Standard Chartered Bank, Goldman Sachs, First Gulf Bank, Emirates NBD, Noor Bank

23 Hilal Services Saudi Arabia

Sukuk Euro market private placement

500 1.4 Standard Chartered Bank, Mizuho, HSBC, Arab Banking Corporation, National Bank of Kuwait, First Gulf Bank, Dubai Islamic Bank, SG Corporate & Investment Banking, CIMB Group, Emirates NBD, Warba Bank, Noor Bank

24 Majid Al Futt aim Properties

UAE Sukuk Euro market public issue

499 1.4 Standard Chartered Bank, HSBC, National Bank of Abu Dhabi, Dubai Islamic Bank, Abu Dhabi Islamic Bank

25 Garuda Indonesia Global Sukuk

Indonesia Sukuk Euro market public issue

496 1.4 Standard Chartered Bank, Deutsche Bank, ANZ, National Bank of Abu Dhabi, First Gulf Bank, Maybank, Dubai Islamic Bank, Sharjah Islamic Bank, Emirates NBD, Al Hilal Bank, Warba Bank, Noor Bank

26 Malaysia Building Society

Malaysia Sukuk Domestic market public issue

452 1.3 RHB Capital

27 Almarai Saudi Arabia

Sukuk Domestic market public issue

427 1.2 HSBC, Samba Capital

28 Kuala Lumpur Kepong

Malaysia Sukuk Domestic market public issue

417 1.2 Maybank, CIMB Group

29 SABB Saudi Arabia

Sukuk Domestic market private placement

400 1.1 HSBC

30 Putrajaya Holdings Malaysia Sukuk Domestic market public issue

374 1.1 Maybank, CIMB Group, AmInvestment Bank

Total 35,295 100

33© 4th May 2016

DEALOGIC LEAGUE TABLES

Top Managers of Sukuk 12 Months

Manager US$ (mln) Iss %

1 CIMB Group 5,941 41 16.8

2 Maybank 4,660 30 13.2

3 RHB Capital 3,994 35 11.3

4 HSBC 3,950 22 11.2

5 Standard Chartered Bank 2,572 19 7.3

6 AmInvestment Bank 1,888 19 5.4

7 JPMorgan 1,569 5 4.5

8 Dubai Islamic Bank 1,550 11 4.4

9 Deutsche Bank 1,091 5 3.1

10 National Bank of Abu Dhabi 903 8 2.6

11 Bank Muscat 649 1 1.8

12 Citigroup 625 2 1.8

13 Samba Capital 560 2 1.6

14 Emirates NBD 555 8 1.6

15 Natixis 551 2 1.6

16 Kenanga Investment Bank 535 12 1.5

17 Hong Leong Financial Group 369 3 1.1

18 Noor Bank 354 6 1.0

19 First Gulf Bank 275 4 0.8

20 DBS 258 4 0.7

21 National Bank of Kuwait 239 2 0.7

22 Gulf International Bank 214 1 0.6

23 QInvest 204 3 0.6

24 Sharjah Islamic Bank 196 3 0.6

25 Barwa Bank 161 2 0.5

26 Abu Dhabi Islamic Bank 144 2 0.4

27 Bank Islam Malaysia 137 3 0.4

28 Arab National Bank 133 1 0.4

29 Arab Banking Corporation 96 2 0.3

30 OCBC 88 2 0.3

Total 35,295 121 100

Top Islamic Finance Related Project Financing Legal Advisors Ranking 12 Months

Legal Advisor US$ (million) No %1 White & Case 1,635 2 15.02 Allen & Overy 1,532 1 14.02 Latham & Watkins 1,532 1 14.04 Adnan Sundra & Low 1,361 1 12.54 Zaid Ibrahim & Co 1,361 1 12.56 Chadbourne & Parke 988 2 9.07 King & Spalding 877 1 8.08 Cliff ord Chance 758 1 6.99 Salans FMC SNR Denton Group 650 1 6.010 Norton Rose Fulbright 110 1 1.010 Shearman & Sterling 110 1 1.0

Top Islamic Finance Related Project Finance Mandated Lead Arrangers 12 Months

Mandated Lead Arranger US$ (million) No %1 Banque Saudi Fransi 808 3 10.62 National Commercial Bank 711 4 9.43 Samba Capital & Investment

Management670 4 8.8

4 HSBC 593 3 7.85 Mitsubishi UFJ Financial Group 474 3 6.26 Sumitomo Mitsui Financial Group 474 3 6.27 First Gulf Bank 414 4 5.48 Export Development Canada 299 2 3.99 Mizuho Financial Group 239 2 3.19 SG Corporate & Investment Banking 239 2 3.1

Sukuk Volume by Currency US$ (billion) 12 Months

Sukuk Volume by Issuer Nation US$ (billion) 12 Months

Global Sukuk Volume by Sector 12 Months

Global Sukuk Volume - US$ Analysis

16.5

15.1

2.4

0.6

Malaysian ringgit

US dollar

Saudi riyal

Omani rial

Hong Kong

18.6

1.0

1.0

2.2

5.0

5.6

0.6

Malaysia

Indonesia

Saudi Arabia

Qatar

Oman

UAE

Finance

Construction/BuildingUtility & Energy

GovernmentTransportation

Other

9%

11%

5% 36%

15%

24%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 4Q3Q2Q1Q 1Q4Q3Q2Q1Q4Q3Q2Q2011 2012 2013 2014 2015 2016

0100200300400500600

02468

1012141618

US$mUS$bnNon-US$ US$

34© 4th May 2016

DEALOGIC LEAGUE TABLES

Top Islamic Finance Related Financing Mandated Lead Arrangers Ranking 12 Months

Mandated Lead Arranger US$ (mln) No %1 First Gulf Bank 951 11 5.72 Abu Dhabi Islamic Bank 945 9 5.63 Saudi National Commercial Bank 838 6 5.04 Mashreqbank 816 10 4.95 Samba Capital 813 6 4.86 Banque Saudi Fransi 731 4 4.47 HSBC 545 5 3.38 Abu Dhabi Commercial Bank 521 5 3.19 SABB 502 3 3.010 Emirates NBD 483 6 2.911 Dubai Islamic Bank 442 7 2.612 Noor Bank 376 5 2.213 Maybank 370 2 2.214 CIMB Group 338 1 2.015 Industrial & Commercial Bank of China 337 3 2.016 Bank Albilad 292 2 1.717 National Bank of Abu Dhabi 291 4 1.718 China Development Bank 267 1 1.618 China Construction Bank 267 1 1.620 Arab Banking Corporation 261 4 1.621 Gulf International Bank 253 3 1.521 Ahli United Bank 253 3 1.523 Al Khaliji Commercial Bank 252 4 1.524 Qatar Islamic Bank 251 3 1.525 Standard Chartered Bank 243 4 1.526 Riyad Bank 229 1 1.426 Al Rajhi Capital 229 1 1.428 Kuwait Finance House 222 2 1.329 Sumitomo Mitsui Financial Group 221 2 1.329 SG Corporate & Investment Banking 221 2 1.329 Mizuho 221 2 1.329 Mitsubishi UFJ Financial Group 221 2 1.3

Top Islamic Finance Related Financing Mandated Lead Arrangers12 Months

Bookrunner US$ (mln) No %1 Mashreqbank 1,824 7 20.62 Abu Dhabi Islamic Bank 1,270 5 14.33 Noor Bank 804 3 9.14 Standard Chartered Bank 354 3 4.05 Maybank 338 1 3.85 CIMB Group 338 1 3.87 Abu Dhabi Commercial Bank 327 1 3.78 Emirates NBD 304 2 3.49 Saudi National Commercial Bank 267 1 3.09 SABB 267 1 3.09 Samba Capital 267 1 3.09 Riyad Bank 267 1 3.09 Banque Saudi Fransi 267 1 3.09 Al Rajhi Capital 267 1 3.0

Top Islamic Finance Related Financing by Country 12 Months

Nationality US$ (mln) No %1 UAE 5,472 15 32.62 Saudi Arabia 4,789 4 28.53 Pakistan 1,561 3 9.34 Qatar 1,200 3 7.25 Malaysia 847 3 5.16 Turkey 663 3 4.07 Bahrain 570 1 3.48 Jordan 550 2 3.39 Egypt 370 2 2.210 Kuwait 362 2 2.2

Are your deals listed here?If you feel that the information within these tables is inaccurate, you may contact the following directly: Shireen Farhana (Media Relations) Email: shireen.farhana@dealogic.com Tel: +852 2804 1223

Top Islamic Finance Related Financing by Sector 12 Months

0US$ bln 1 32 87654

Transportation

Finance

Mining

Oil & Gas

Utility & Energy

Global Islamic Financing - Years to Maturity (YTD Comparison)

0% 20% 40% 60% 80% 100%200820092010201120122013

20152014

0-3yrs 3-5yrs 5-7yrs 7-10yrs 10+yrs

Top Islamic Finance Related Financing Deal List 12 Months

Credit Date Borrower Nationality US$ (mln)15th Apr 2016 Yanbu Aramco Sinopec

Refi ningSaudi Arabia 4,700

24th Jun 2015 Jazan Gas Projects Saudi Arabia 1,790

18th Jun 2015 Emirates National Oil UAE 1,500

9th Mar 2016 Dhuruma Electricity Saudi Arabia 1,138

24th Dec 2015 Sindh Engro Coal MiningEngro Powergen

Pakistan 1,010

28th Jul 2015 GEMS Education UAE 817

16th Aug 2015 ACWA Power International Saudi Arabia 769

11th Dec 2015 Cititower Malaysia 751

25th Jun 2015 Tecnimont SpA Italy 650

29th Nov 2015 Gulf Marine Services UAE 620

35© 4th May 2016

EVENTS DIARY

Group Lauren McAughtryManaging Editor lauren.mcaughtry@REDmoneygroup.com

Editor Vineeta Tanvineeta.tan@REDmoneygroup.com

Senior Sasikala ThiagarajaContributions sasikala.thiagaraja@REDmoneygroup.comEditor

Senior Copy Kenny NgEditor kenny.ng@REDmoneygroup.com

Senior Danial IdrakiJournalist danial.idraki@redmoneygroup.com

Journalist Nurul Ashikin Abd Halimnurul.ashikin@REDmoneygroup.com

Head of Hasnani AspariProduction hasnani.aspari@REDmoneygroup.com

Senior Production Norzabidi AbdullahManager zabidi.abdullah@REDmoneygroup.com

Senior Graphic Eumir Shazwan Kamal BahrinDesigner eumir.shazwan@REDmoneygroup.com

Senior ProductionMohamad Rozman BesiriDesigner rozman.besiri@REDmoneygroup.com

Associate Steve StubbsPublisher steve.stubbs@REDmoneygroup.com

Tel: +603 2162 7800 x 55

Associate Sandra SpencerPublisher sandra.spencer@REDmoneygroup.com

Tel: +9714 427 3624

Subscriptions Faizan HaiderManager faizan.haider@REDmoneygroup.com

Tel: +603 2162 7800 x 24

Subscriptions Dia JabassiniManager dia.jabassini@REDmoneygroup.com

Tel: +603 2162 7800 ext 38

Subscriptions Puja Nagi (Dubai Offi ce)Account puja.nagi@redmoneygroup.comManager Tel: +971 4 427 3638

Finance Faizah HassanDirector faizah.hassan@REDmoneygroup.com

Deputy Publisher Geraldine Chan (Dubai offi ce)& Director geraldine.chan@REDmoneygroup.com

Managing Andrew Tebbutt Director andrew.tebbutt @REDmoneygroup.com

Managing Director Andrew Morgan& Publisher andrew.morgan@REDmoneygroup.com

Published By:

MALAYSIASuite 22-06, 22nd FloorMenara Tan & Tan207, Jalan Tun Razak50400 Kuala Lumpur, MalaysiaTel: +603 2162 7800 Fax: +603 2162 7810

UAEPO Box 126732, 16th Floor, X2 Tower, Jumeirah Lake Tower (JLT), Jumeirah Bay, Dubai, UAETel: +971 4 427 36 23Fax: +971 4 431 4614

DISCLAIMERAll rights reserved. No part of this publication may be reproduced, duplicated or copied by any means without the prior consent of the holder of the copyright, requests for which should be addressed to the publisher. While every care is taken in the preparation of this publication, no responsibility can be accepted for any errors, however caused.

training

MAY 2016

3rd – 5th Basel III & IFSB Regulations for Islamic Financial Institutions

Kuala Lumpur, Malaysia

8th – 9th Islamic Financial Products: Best Practices & Applications

Muscat, Oman

8th – 10th Asset Liability Management & Risk-Based Pricing for Islamic Banks

Dubai, UAE

9th – 11th Islamic Asset Management Products & Investment Strategies

Kuala Lumpur, Malaysia

16th Shariah Standards & Structuring Issues for Tawarruq

Kuala Lumpur, Malaysia

16th – 18th Advanced Structured Products & Derivatives

Kuala Lumpur, Malaysia

29th – 31st Advanced Sukuk & Islamic Securitization

Dubai, UAE

30th Cash Waqf & Corporate Waqf: New Financial Products

Dubai, UAE

eventsSEPTEMBER 2016

6th IFN Investor Forum Kuala Lumpur, Malaysia

28th IFN Turkey Forum Istanbul, Turkey

OCTOBER 2016

TBA IFN Iran Forum Tehran, Iran

9thIFN Project & Infrastructure Finance Forum

Dubai, UAE

17th – 18th Africa Islamic Finance Forum Abidjan, Côte d’Ivoire

24th IFN Kuwait Forum Kuwait City, Kuwait

NOVEMBER 2016

28th IFN Saudi Arabia Forum Jeddah, Saudi Arabia

MARCH 2017

TBA IFN Oman Forum Muscat, Oman

TBA China OIC Forum TBA

APRIL 2017

10th – 11th IFN Asia Forum Kuala Lumpur, Malaysia

COMPANY INDEX1MDB 2090 North Partners 22Aafaq Education 13Aafaq Islamic Finance 13AAOIFI 9, 12, 16ABC Islamic 23ABC Islamic Bank 22Abu Dhabi Islamic Bank Egypt 12Ahli United Bank 12Al Baraka Bank Egypt 12Al Baraka Banking Group 24Al Qalam Institute of Ateneo de Davao University 16Al Rajhi Banking Corporation 1Al Wifaq Finance 23Al-Amanah Islamic Investment Bank 16Allen & Overy 14Allied Bank 21Al-Madina for Finance and Investment 25Arab Investment Bank 12Arab National Bank 22Assegaf Hamzah & Partners 14Association of Banks Malaysia 6Autoriti Monetari Brunei Darussalam 11Bahrain Bourse 21Bangko Sentral ng Pilipinas 16Bank ABC 23Bank Al Etihad 22Bank Danamon 21Bank Muamalat Malaysia 21Bank Negara Malaysia 6, 13, 15, 21Bank of Ghana 21Bank of International Sett lements 19Bank of Tokyo-Mitsubishi UFJ 8Bank Simpanan Nasional 3, 4Banque Misr 12Barclays 3Barwa Bank, 22BIMB Investment 7Boubyan Bank 20BTMU Group 8BTMU Malaysia 8Bureau of Internal Revenue 16Bursa Malaysia 15Capgemini 1, 3Capital Intelligence 25Capital Market Authority of Saudi Arabia 21Central Bank of Bahrain 21Central Bank of Egypt 12Central Intelligence Agency 10Central Securities Depository of Iran 22Chartered Institute for Securities and Investments 13Chartered Institute of Islamic Finance PProProfessionals 6CIMB 3CIMB Group 6CIMB Investment Bank 14CIMB Islamic Bank 6, 14Citi Islamic Investment Bank 14Citigroup Global Markets 14Cliff ord Chance 14CME Group 18Commercial Bank International 22, 25Continuous Education Center 13Cordaid 16Credit Suisse 3Danajamin Nasional 11, 21Danamon Syariah 21

Danga Capital 11, 21Dealogic 10Deutsche 3Deutsche Bank AG (Singapore branch) 14DIFC 10Dubai Economic Council 10Dubai Financial Market 22Dubai Islamic Bank 1, 14, 20, 22, 23Egyptian Exchange 12Emirates College of Technology 13Emirates Islamic 5Emirates NBD 22Emirates NBD Capital 20, 22Employees Provident Fund 7Enmaa Leasin Company 12Eshraq Properties 22European Bank for Reconstruction and Development 12EXIM Bank Malaysia 15EY 3Ezdan Holding Group 25Faisal Islamic Bank 12Finance Accreditation Agency 13First Gulf Bank 23Fitch 14GEMS Education 22GFH Financial Group 22Goldman Sachs 3Hadiputranto, Hadinoto & Partners 14Halal Industry Development Corporation 15Housing Development Finance Corporation 15HSBC 20ICD 12, 13, 15IDB 12, 15, 22IILM 11, 21Institute of Finance and Management 13International Petroleum Investment Company 20Iran Fara Bourse 11, 20, 22ISRA 15ITFC 12Jordan Dubai Islamic Bank 22Jordan Islamic Bank 24KFH Capital 20Kuwait Finance House 1, 10Kuwait National Petroleum Company 10Lembaga Tabung Haji 25Levant One 22London Central Portfolio 25MAA Group 24MAA Takaful 24Maisarah Islamic Banking Services 22Makkah 21Malaysia External Trade Development Corporation 15Maldives Center for Islamic Finance 15Manfaat Tetap 21Manulife Aset Manajemen Indonesia 23MARC 25Mashreq Qatar 22Maybank 3, 6Maybank Indonesia 23Maybank Islamic 15Maybank Islamic Asset Management 19Meezan Bank 23MESC Investment 22MIFC 7, 13, 15Misr Insurance Holding 12Moody’s 14, 25

Morales Justiniano Peña & Lumagui 16

NASDAQ Dubai 14

National Bank of Fujairah 23

National Bank of Kuwait 10, 20

National Commission on Muslim Filipinos 16

National Home Mortgage Finance Corporation 16

NBK-Egypt 12

NCB Capital 21

Noor Bank 22

Orient Planet Research 1, 3

Otoritas Jasa Keuangan 9, 20

Peace and Equity Foundation 16

Perak Transit 21

Perbadanan Insurans Deposit Malaysia 24

Perdana Petroleum 11, 21

Petra 22

Philippine Deposit Insurance Corporation 16

Philippine Stock Exchange 16

Public Islamic Bank 25

Qatar First Bank 22

Qatar Stock Exchange 22

RAM 11, 21, 25

RHB Group Asset Management 9

RHB Islamic International Asset Management 9

Riyad Bank 1, 21

S&P 14

Samba Financial Group 1

Sarana Multgriya Financial 20

Saudi Aramco 20

Saudi British Bank 1

Saudi Company for Hardware 22

Saudi International Petrochemical Company 21

Securities Commission Malaysia 7, 9

Sharjah Islamic Bank 22

SI Capital 25

Sidra Capital 22

Simply Ethical 17

Singapore Exchange Securities Trading 14

SMBC Europe 8

Solidarity Group 24

Special Power Vehicle 20

Standard Chartered 20

Standard Chartered Bank 14

Sumitomo Mitsui Banking Corporation 8

Sunway Treasury Sukuk 21

Tadhamon International Islamic Bank 25

Union National Bank 23

United Arab Bank 22

United Bank 12

United Overseas Bank 11, 21

University College of Bahrain 13

US Federal Reserve 18, 19

World Bank 16

ZICOlaw 15

Zurich Insurance Company 24

NE-IFN13/18

INDIVIDUAL SUBSCRIPTION

US US

Subscribe me to

YOUR DETAILS

Full Name:(First Name) (Surname)

Company Name: Job Title:

Address:

Telephone: Fax:Work Email:

Country:Postal/Zip:

COMPANY WIDE SUBSCRIPTION

Year at US ne Years at US ne

(Max: 10 Individual Subscriptions)

GROUP WIDE SUBSCRIPTION

1 Year: US$12,5002 Years: US$22,500

Credit Card Go to islamic nancene s com/subscribe asp **Cheque Telegraphic Transfer (T/T)Please send your T/T advice ith your subscription form to us either by post or fax A con rmation ill be sent once payment is received Subscription is not con rmed until payment has been made in full

Payment can be made in US$ by:

Daily ne s alerts

Each subscription will receive: 50 issues of Islamic Finance news available

every Wednesday

Exclusive login details for each subscriber Unlimited access to entire archived library All additional supplements, guides and reports

How to subscribe:T +603 2162 7800 F +603 2162 7810T +971 4427 3600 F +971 4431 4614

Subs@IslamicFinanceNews.com

si o ce Suite 22-06, 22nd Floor, Menara Tan & Tan, 207, Jalan Tun Razak, 50400 Kuala Lumpur, MalaysiaDub i o ce 16/F, X2 Tower, Jumeirah Lake Towers (JLT), Jumeirah Bay, PO Box 126732, Dubai, UAE

* All currency conversion will be applicable to the date of invoice. All prices above are not inclusive of taxes, 6% service tax will be imposed to Malaysian based subscriber. ** Only for Malaysian-based companies