A Tanzanian firm makes its Sukuk debut, officially placing the East African nation on the Sukuk map; another Nigerian corporate is working on tapping the Sukuk market; new innovative Shariah funds make their appearances in Malaysia and Iran; while Malaysia could welcome new digital Takaful offerings in the near future. All these and more in this edition of IFN Weekly Round-up.
Tanzania finally enters Sukuk market
Virtually absent from the sector, Tanzania now joins the ranks of its regional peers as a Sukuk market, albeit a fledgling one, having witnessed the issuance of its first-ever corporate Sukuk facility, which was quickly snapped up by eager investors. Issued by Imaan Finance, the TZS2 billion (US$859,558) privately placed Sukuk Wakalah offering received an orderbook of TZS2.72 billion (US$1.17 million).
Purple Sukuk in August
Nigerian real estate investment firm Purple Group is issuing a Sukuk facility on a private placement basis expected to be closed by the end of this month, IFN has learned. This would the second corporate Sukuk to come out of Nigeria this year.
AEON Credit dives into digital insurance
AEON Credit Service has received the greenlight from Bank Negara Malaysia to fully acquire Takaful and insurance broker Insurepro in a RM1.7 million (US$400,896) deal. The acquisition is expected to be concluded by October and will allow AEON Credit to offer insurance products from multiple insurers and Takaful operators through Insurepro to meet the needs of both consumer and business sectors in Malaysia.
Bangladeshi partnership
Islami Bank Bangladesh and Bangladesh House Building Finance Corporation have signed a customer service agreement to carry out Manzil, the joint venture housing investment project of the IsDB and BHBFC in support of lower- and middle-class people in the rural and peri-urban areas.
Full foreign ownership of Islamic Qatari banks
The Qatari cabinet has reportedly approved raising the percentage of non-Qatari ownership in the capital of Qatar Islamic Bank, Masraf Al Rayan, Qatar National Bank and Commercial Bank to 100%, in line with Article 7 of Law No 1 of 2019 on regulating the investment of non-Qatari capital in economic activity.
UK company launches Islamic homeownership program
Property management company Wayhome has begun buying homes as it launched its Shariah compliant Gradual Homeownership program, after closing the initial phase of a GBP500 million (US$688.92 million) fund. This capital raised from pension funds will be used to support would-be homeowners with a mortgage-free home purchasing scheme.
GFH–KHCB merger progresses
Moving forward with its merger plan, GFH Financial Group has submitted an acquisition letter of intent to Khaleeji Commercial Bank (KHCB)’s board and plans to submit the firm intention and offer document during the third quarter of this year. The voluntary takeover offer is expected to be concluded this year, subject to approvals.
Azentio acquires Path Solutions’s Islamic portfolio
Singapore-headquartered Azentio Software has signed a binding agreement to acquire software assets from Path Solutions, including the flagship products iMAL, iSHRAQ, Path Digital and Path Analytics. Subject to regulatory approvals and customary closing conditions, the acquisition essentially means Azentio will be taking over the latter’s Islamic banking portfolio.
New Islamic funds
New Islamic funds hit the market this past week. In Malaysia, Maybank Asset Management (Maybank AM) has launched the Maybank Asia Mixed Assets-I Fund, the asset manager’s first Shariah compliant mixed assets fund which leverages Quant Investing’s technology, IFN learned.
In Iran, Padash Sarmayeh has launched PAADA, its new indexing exchange-traded fund, on the Iran Fara Bourse Structured Financial Product Market. Padash Sarmayeh also plans to launch venture capital and private equity funds.