Tuesday, January 10, 2012

INDONESIA - CAPITAL MARKETS - Muamalat put IDR1.25 trillion of sukuk in the pipeline

JAKARTA: PT Bank Muamalat Indonesia Will Tbka financial issue certificates equivalent to Islamic bonds worth IDR1.25 trillion in the first half of the year to strengthen its capital adequacy.
The financial certificates are subordinated sukuk (subdebt) worth IDR800 billion and dollar-denominated senior sukuk worth U.S. $ 50 million, or IDR450 billion (U.S. $ 1 = IDR9, 000). (source)



Muamalat, the first Indonesian bank applying Islamic principles, has set some preparation on the process of issuing the sharia-based bonds.
"It includes auditing report, appointing an underwriter, and submitting a proposal for approval to Bapepam-LK. We expect the sukuk Will be Issued in the first half of the year, "said President Director of Bank Muamalat Arviyan Arifin.
The bank has audited its December 2011 financial report, the which is required before the bond issue. According to the regulations by Bapepam-LK, the audited financial report will from valid for 6 months, so the bond issue must take place by June 2012.
The bank is conducting a beauty contest to select some securities companies to be underwriters.
The bank Earlier the global sukuk Revealed That Will mature not more than 5 years. In the meantime, the subordinated debt will of have longer maturity than the senior sukuk.
Bank Indonesia regulates than 50% of the proceeds from a subordinated debt issue is included in a bank's tier II capital. Subordinated debt has lower priority on settlement than does the senior sukuk.
Muamalat sukuk issues to strengthen its capital adequacy ratio, the which has been eroded by credit expansion, said Director of Financial and Operation Hendiarto.
At end of 2011, the sharia banks recorded CARs at 12%, higher than the minimum 8% regulated by the central bank. The measure shows a bank's ability in facing the risk of credit assets. (T04/msw)

Bank Muamalat put IDR1.25 trillion sukuk in pipeline

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JAKARTA: PT Bank Muamalat Indonesia Tbka will issue financial certificates equivalent to Islamic bonds worth IDR1.25 trillion in the first half of the year to strengthen its capital adequacy.

The financial certificates are subordinated sukuk (subdebt) worth IDR800 billion and dollar-denominated senior sukuk worth US$50 million, or IDR450 billion (US$1 = IDR9,000).

Bank Muamalat, the first Indonesian bank applying Islamic principles, has set some preparation on the process of issuing the sharia-based bonds.

“It includes auditing report, appointing underwriter, and submitting proposal for approval to Bapepam-LK. We expect the sukuk will be issued in the first half of the year,” said Bank Muamalat President Director Arviyan Arifin.

The bank has audited its December 2011 financial report, which is required before the bond issue. According to the regulation by Bapepam-LK, the audited financial report will valid for 6 months, so the bond issue must take place by June 2012.

The bank is conducting a beauty contest to select some securities companies to be underwriter.

The bank earlier revealed that the global sukuk will mature not more than 5 years. In the meantime, the subordinated debt will have longer maturity than the senior sukuk.

Bank Indonesia regulates than 50% proceeds from a subordinated debt issue is included in a bank’s tier II capital. Subordinated debt has lower priority on settlement than the senior sukuk does.

Bank Muamalat issues sukuk to strengthen its capital adequacy ratio, which has been eroded by credit expansion, said Director of Financial and Operation Hendiarto.

At end of 2011, the sharia bank recorded CAR at 12%, higher than the minimum 8% regulated by the central bank. The measure shows a bank’s ability in facing risk of credit assets. (T04/msw)
Source :   - Jan 9, 2011 - google translate

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