The World’s Leading Islamic Finance News Provider (All Cap) 1300 South Africa’s Two years Mining Astana electricity post-Sukuk blockchain International 1250 1,218.93 1200 1,214.98 provider looks test, Russia is potential: Financial Centre 1150 at domestic and ready to debut Iran turns to works on -0.32% 1100 international Sukuk...7 technopreneurs...7 Islamic Finance W T F S S M T Sukuk...5 Master Plan...8 Powered by: IdealRatings® COVER STORY 24th July 2019 (Volume 16 Issue 29) Quantum Solar: What happens when green Sukuk falter? The RM1 billion (US$243.4 million) a total project cost of around RM1.24 immediate impact” from the delay due green Sukuk issuance from Quantum billion (US$301.8 million, funded on an to the project’s suffi cient cash buff ers Solar Park Malaysia (QSP) was the 80:20 Sukuk to equity basis), the 150 MW and sponsor support, with any project biggest green SRI issuance out of project made QSP the largest solar power cost overruns paid by the sponsors Malaysia. Launched to a fanfare of producer in Malaysia — and Malaysia from a RM50 million (US$12.15 million) praise in June 2017 — and shortlisted one of the biggest producers in ASEAN. contingency equity facility backed by a for the IFN Deal of the Year — the bank guarantee. Pre-funding under the transaction was a milestone in Given a preliminary rating of ‘AA-IS’ Sukuk enabled the fi rst profi t payment Malaysia’s debt capital market, paving with a stable outlook by the Malaysian to be made on the 6th April 2018, and the the way for a host of other corporate Rating Corporation (MARC), the project fi nancial service reserve was also met for issuers to ‘go green’. But the project initially looked strong. The equity the second profi t payment. has been plagued by delays, with (around RM250 million/US$61 million, a downgrade in January presaging backed by a solid bank guarantee) was But by the third quarter of 2018, the serious concerns around the viability injected into QSP Semenanjung before cracks were starting to show. of the Sukuk. Could a default by QSP any of the project companies began be imminent? And what impact might major work; and the projected cash What went wrong? this have on Malaysia’s burgeoning fl ow coverage was robust, supported An independent consultant engineer’s market for green Sukuk? LAUREN by 21-year purchase agreements with report in September rated construction MCAUGHTRY explores. Tenaga Nasional (TNB), the state progress at just 68.1% for the Jasin plant electricity provider. Based on a 10-month and 62.3% for the Merchang plant, and What’s it all about? construction timeline, the commercial the CODs were revised to the 22nd and The QSP Sukuk Murabahah, operation date (COD) of the three plants 26th March 2019 respectively. Although issued through the wholly- was originally scheduled for the the Gurun plant achieved COD on st owned Quantum Solar 31 December 2017. the 19th December 2018, by January Park (Semenanjung) (QSP the MARC had downgraded the QSP Semenanjung), was created However, these dates proved Sukuk rating to ‘A+-IS’ and placed it on to fund the concurrent unachievable, and TNB was a negative outlook due to the increased development of three 50 forced to extend the COD risk of termination by TNB of its solar megawatt (50 MW) alternating for all three plants — fi rst power purchase agreement because of st current solar photovoltaic to the 31 March 2018, and the lengthy delays. th power plants: one each subsequently to the 30 June in Gurun (Kedah), 2018. “Completion delay of the plants has Merchang also weakened the overall project cash (Terengganu) and The MARC at fi rst fl ows and strained QSP Semenanjung’s predicted “no Jasin (Melaka). With continued on page 3 IN ASSOCIATION WITH FORUM 29thth AUGUST 2019 SINGAPORE SGX Centre, Singapore 2019 www.REDmoneyevents.com IFN RAPIDS Volume 16 Issue 29 Gambia’s National Food DEALS Security Processing and ASSET IFN Rapids ................................................... ..2 Bank Negara Malaysia Cooperation IFN Reports: issues Shariah compliant MANAGEMENT • South Africa’s heavily indebted electricity Sarwa Capital’s proposal money market facilities to distribute bonus shares Perth Mint Physical Gold provider looks at domestic and international ETF lists on New York Ministry of Finance of approved by Financial Sukuk • Bahraini Islamic banks race to grab Stock Exchange open banking domination as rules come into Indonesia reopens auction Regulatory Authority eff ect • Company Focus: Off a • Two years of six Islamic papers Faisal Islamic Bank’s Wahed Invest launches Shariah compliant US post-Sukuk test, Russia is ready to debut Sukuk Central Bank of Bahrain’s shareholders approve equity ETF • Mining blockchain potential: Iran turns to 91-day Sukuk Salam capital increase to US$1 technopreneurs to develop digital token and oversubscribed billion GFH Capital acquires smart contract off erings • Astana International Ivory Coast’s economic healthcare portfolio in Financial Centre works on Islamic Finance Central Bank of Gambia’s committ ee approves Islamic the US exceeding US$180 Master Plan touted to make Kazakhstan a Sukuk Salam facilities microfi nance bill million in value regional hub • Turkey adds to Sukuk repertoire oversubscribed Investcorp Technology with sophomore Tier 1 capital Sukuk facility • Gamuda off ers 92-day Banque Islamique du Partners acquires majority Sovereign securities: Seven regular issuers tap Islamic commercial paper Senegal launches Tamweel stake in Contentserv the Islamic capital market .............................5 for RM50 million (US$12.16 Touch million) Bareksa introduces Bareksa IFN Analyses: Umroh to off er Shariah TAKAFUL Canada: The progressive Islamic fund space . ..10 Bangladesh Bank places compliant mutual funds to Financial technology: Many new green shoots 11 three-month and six-month Cobalt Underwriting and fi nance Umrah pilgrimage Case Study: Bangladesh Government Chaucer Syndicate donate ADIB UK’s fi nancing of portfolio purchase: Islami Investment Bonds Bangladesh Petroleum London’s fi rst-ever Islamic surplus to Teenage Cancer Fortifying UK–Middle East real estate Sunway Treasury Sukuk Corporation to receive Trust relationships ................................................... 12 places one Islamic medium- US$1.2 billion-worth Shariah Pronouncement: term note and two Islamic of fi nancing from Pak-Qatar Family Takaful Real estate ...................................................... 13 commercial papers International Islamic opens new branch in Back To Basics: Trade Finance Corporation Gulshan-e-Iqbal Brunei raises BN$100 Genius of the tripartite agreement in Ijarah million (US$73.49 million) Bond Pricing Agency Saudi Arabian Monetary fi nancing ........................................................ 14 from short-term Sukuk Malaysia to launch Authority renews Column: Daud speaks Ijarah Malaysia’s fi rst insurance license of Union Potpourri ........................................................ 15 Environmental, Social and Cooperative Insurance IFN Country Correspondents: Central Bank of Kuwait Governance Bond Index Company Hong Kong; Afghanistan; the US; Algeria; Egypt; off ers KWD240 million Series Nigeria ........................................................... 16 (US$785.95 million)-worth IFN Sector Correspondents: of conventional bonds and RATINGS Islamic Microfi nance; Islamic Leasing; Mergers & related Tawarruq facilities RESULTS Konsortium KAJV secures Acquisitions; Halal Industry ......................... 20 Sabah Credit Corporation Kuwait Finance House ‘AA- ’ rating from Malaysian Special Reports: IS issues Islamic commercial announces net profi t Rating Corporation for its Islamic fi nance training and development paper worth RM50 million of KWD107.7 million Sukuk program landscape from 2018 ...................................... 23 (US$12.14 million) (US$352.7 million) for fi rst Islamic banking in Turkey ............................. 25 half of 2019 RAM reaffi rms ‘AAA(fg)/ Country Feature: Kazakhstan’s trade ties Stable’ rating on Puncak An uncertain future but Islamic fi nance can lead with the UAE remain on Qatar Islamic Bank Wangi’s Islamic paper the way in the UK .......................................... 27 solid growth trajectory announces 7.5% net profi t program growth for fi rst half of 2019 Sector Feature: Warba Bank gets nod Islamic fi nance: Boosted by Brexit? ............... 28 for Sukuk not exceeding Dubai Islamic Bank MOVES Book Excerpt: US$500 million reports 13% jump in group Islamic fund and wealth management: A way net profi t for fi rst half of SABB Takaful appoints forward ........................................................... 29 2019 Mohammed Abdulaziz NEWS Alshaya and Sami Jadaan Emirates Islamic reports Al Muhaid as chairman News Briefs .................................................. 30 Hij ra Bank announces 39% jump in net profi t for and deputy chairman Deal Tracker .................................................36 launch of sales of public fi rst half of 2019 respectively REDmoney Shariah Indexes ...................... 37 shares Eurekahedge Funds Tables ........................39 First Abu Dhabi Bank Ajman Bank awards senior International Islamic Dealogic League Tables ..............................42 announces 4% net profi t roles in higher management Trade Finance Corporation REDmoney Events ...................................... 46 growth for fi rst half of 2019 to Emiratis Subscription Contact................................... 46 donates fertilizers to Disclaimer: IFN invites leading practitioners and academics