7 days to go
Wednesday, 25th March 2015
S&P 500 Shariah
Dow Jones Islamic World
MSCI World Islamic
FTSE Shariah All World
Russell - IdealRatings Islamic Global
1,841.92
2,977.08
1,185.515
2,087.02
1,925.75
▼ -8.12 ( -0.44%)
▼ -6.22 ( -0.21%)
▼ ( -0.41%)
▼ -5.23 ( -0.25%)
▼ -1.13 ( -0.06%)
HIGHLIGHTS: UAE extends spectrum of eligible collateral for Collateralized Murabahah Facility – Garuda Indonesia to issue global Sukuk in May – Morocco plans Islamic interbank market – Emirates Airline expected to price Sukuk today
This week's poll question: With current market climate, will we see more players trying to achieve a negative yield on their Sukuk issuance this year?
The UAE levels playing field; enhances liquidity management facility for Islamic banks
Daily Cover
UAE: Addressing the dearth of Shariah compliant liquidity management tools, the Central Bank of the UAE (CBUAE) has decided to widen the pool of eligible collateral for its Collateralized Murabahah Facility (CMF) beyond central bank Islamic certificate of deposits to include other Shariah compliant securities. According to a statement by the central bank, this extension will be in effect the 1st April and will allow domestic Islamic banks to secure central bank funds on an overnight basis using eligible securities as collateral via the Triparty Collateral Management Agreement signed with either Clearstream Banking or Euroclear Bank.
“The extension of the spectrum of eligible collateral under CMF will enable Islamic banks to access central bank liquidity against collateral as in the case of conventional banks which enjoy such access under the Interim Marginal Lending Facility (IMLF),” explained the CBUAE. The IMLF was launched last April to further strengthen the UAE banking system through the provision of effective liquidity management solutions. At that point of launch, the CBUAE announced that a Shariah compliant version of the IMLF would be made available in the “coming weeks”.
Designed to provide liquidity to Islamic banks, the CMF was introduced in June 2011 but only accepted Islamic certificate of deposits from the central bank as collateral. Expanding the scope of eligible securities is therefore a welcomed move from the industry, as this will better prepare Islamic financial institutions in the face of market distress.
Categorized into five classes, eligible collateral for the CMF under the new regime includes investment grade securities covering straight Sukuk, covered Sukuk, Islamic treasury bills, Shariah compliant short-term and medium-term notes as well as Islamic commercial papers. Below investment grade Sukuk (‘P-3/A-3/F-3’) are also accepted; however, the papers must be issued, originated and/or explicitly guaranteed by UAE local governments and their respective government-related entities/non-commercial public sector enterprises, domestic corporate entities (conditional), or UAE banks as per central bank guidelines. At the discretion of the CBUAE, securities issued directly by unrated UAE local governments could also be considered.
Law - An IFN Correspondent Report
Investment treaty protection — mitigating the risk of government intervention
Investors should always be very diligent, when choosing the right investment, as well as the right investment vehicle but, as a Turkish real estate fund promoter recently pointed out to me, investors should also be aware that their investment might be subject to politically motivated scrutiny by a government.
Case Study
IDB’s Sukuk: Lowest spread in the bank’s history
The IDB on the 12th March 2015 successfully issued a US$1 billion, five-year Sukuk Wakalah under its US$10 billion medium-term notes program (series 21).
Today's IFN Alerts
INDONESIA: Garuda Indonesia to begin global Sukuk roadshow in May
UAE: Emirates Airline tightens price guidance for US$913 million Sukuk; received US$1.9 billion in orders
INDONESIA: Indonesia's latest Sukuk sale oversubscribed; raised IDR1.97 trillion (US$151.3 million)
MOROCCO: Moroccan central bank to launch Islamic interbank market to stimulate economy
QATAR: Ezdan Holding signs on as lead partner for inaugural IFN Qatar Forum 2015
INDONESIA: Elixir Capital invests US$4.5 million in Indonesian plastic waste recycling business
BAHRAIN: Khaleeji Commercial Bank signs MoU with Gulf Air for discounts on flight tickets
MALAYSIA: Valuecap to bring new Islamic exchange-traded fund to the market next month
SAUDI ARABIA: Ashmore to roll out Islamic funds in Saudi Arabia
PAKISTAN: Premier Insurance to set up Takaful window; receives technical assistance from Meezan Bank
UAE: The UAE levels playing field; enhances liquidity management facility for Islamic banks
KAZAKHSTAN: Sovereign and Development Bank of Kazakhstan's ratings (including Sukuk) not impacted by cross-border restrictions, says RAM
INDONESIA: The deputy commissioner of banking supervision at Otoritas Jasa Keuangan and the deputy chairman for investment climate, Indonesia Investment Coordinating Board, confirm participation at the IFN Indonesia Forum 2015
GLOBAL: Lord Mayor of London to deliver keynote address at IFN Asia Forum in May
MALAYSIA: IFN Awards 2014 in Kuala Lumpur attracts Islamic finance industry's top leaders
TURKEY: Executive vice-chairman of Turkish Capital Markets Board to address audience at the IFN Turkey Forum 2015
UAE: IFN Awards 2014 in Dubai gathers over 400 of Islamic finance's leading lights
IFN Investor Forum 2015
1st April 2015 (Dubai)
IFN US Investor Forum 2015
2nd April 2015 (Dubai)
IFN Indonesia Forum 2015
22nd April 2015 (Jakarta)
IFN Qatar Forum 2015
3rd May 2015 (Doha)
IFN Asia Forum 2015
25th-26th May 2015 (Kuala Lumpur)
IFN Europe Forum 2015
10th June 2015 (Luxembourg)
IFN Issuers Forum 2015
13th September 2015 (Dubai)
IFN Iran Forum 2015
13th September 2015 (Dubai)
IFN Kuwait Forum 2015
5th October 2015 (Kuwait City)
IFN Egypt Forum 2015
27th October 2015 (Cairo)
IFN Turkey Forum 2015
17th November 2015 (Istanbul)
IFN Saudi Arabia Forum 2015
30th November 2015 (Riyadh)
Structuring Islamic Trade Finance Solutions
26th - 28th April 2015 (Riyadh)
Structuring Sukuk & Islamic Capital Market Products
26th - 28th April 2015 (Muscat)
Managing Counterparty Credit Risk, Basel III and Recent Regulatory Issues
7th - 8th May 2015 (Kuala Lumpur)
Fixed Income Products & Bond Markets
11th - 12th June 2015 (Istanbul)
Managing Counterparty Credit Risk, Basel III and Recent Regulatory Issues
9th - 10th July 2015 (Hong Kong)
Islamic Finance Qualification
5th - 7th October 2015 (Kuala Lumpur)
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