FINANCE FORWARD

14

Jun2015

Indonesia Islamic Banking Roadmap Relies on Financial Literacy

The path towards 15% asset share for Islamic assets in Indonesia banks was not clear as growth stalled in Islamic banking assets in the last year at the 5% level.  A roadmap from the financial services regulator OJK is a significant step forwards and follows similar moves in Pakistan ... Read More
June 14, 2015mega

02

Jun2015

Sukuk not immune from overleverage; corporate issuers not following their governments

LEVERAGE HURTS: PALM OIL EDITION Malaysia’s Sime Darby 2023 sukuk are little changed despite a ratings downgrade to A- from A with a negative outlook suggesting that investors largely expected the change.  However, yields on the shorter dated 2018 sukuk tumbled back close to where they were when S&P initially ... Read More
June 2, 2015mega

21

May2015

Garuda’s backup plan and a sukuk opportunity in Oman

CGK→AUH There is a backup plan!  At the end of an article from Reuters about the proposed $500 million, international (Reg S) sukuk from Airline Garuda Indonesia is the backup plan if the sukuk does not get issued.  This is important because there has been rising volatility in markets ... Read More
May 21, 2015mega

13

May2015

Oman’s sukuk opportunity

There has been a split in research on whether the fall in oil prices will have a positive or negative impact on sukuk issuance. Will issuance by the sovereign boost issuance more than private sector issuance would fall due to lower liquidity? The oil price drop has been difficult for ... Read More
May 13, 2015mega

06

May2015

Looking down the road: Tadawul opening and venture capital exits

Rumors that Tadawul would open to foreign investors swirled for years before they will be realized when the market opens in June 2015 but the opening is modest based on the maximum foreign investor ownership limits. Compared to many emerging markets, the amount available to foreign investors is modest (at ... Read More
May 6, 2015mega

01

May2015

IFSB data shows different financing mix for windows, standalone Islamic banks in Pakistan

The controversy about the use of equity versus debt in Islamic finance is one which has been present for years.  The shift towards ‘profit-and-loss sharing’ (PLS) modes of finance is growing in some countries, notably in Pakistan and Indonesia, with help from government policies to encourage it.  The ... Read More
May 1, 2015mega