INDONESIA - BANKING - Syariah Mandiri reduces corporate loans, boosting retail

en.bisnis.com - JAKARTA: PT Bank Syariah Mandiri, Indonesia’s largest sharia-based bank, will reduce the portion of its corporate loans this year as part of its strategy in increasing retail loans.

“The portion of corporate loans is expected to reach 26% in 2012, lower than that of last year. Last year, the portion was 28%,” said Bank Syariah Mandiri (BSM) Director Amran Nasution over the weekend.

With such target, the growth of corporate loans this year will be lower than that of retail loans. He mentioned that the consideration is the dominating big debtors in banking loans in the country. (source)

INDONESIA - BANKING - Muamalat to boost corporate loan to IDR12.25 trillion in 2012

JAKARTA: PT Bank Muamalat Indonesia Tbk is eyeing the corporate financing growth of 39% to IDR12.25 trillion in 2012, by focusing on the disbursement for energy sector.

Under such growth, the corporate financing portion will stay at 40% of the total financing-portfolio, trailing the retail financing portion of 60%.

“In the meantime, corporate financing in the end of November goes near to IDR9 trillion,” Corporate Director of Bank Muamalat Luluk Mahfudah said yesterday. (source)

INDONESIA - RATINGS - Indosat Tbk.

PEFINDO affirmed its ratings of “_idAA+” for PT Indosat Tbk. (ISAT or the Company) and its Bonds II/2002, Bonds V/2007, Bonds VI/2008, and Bonds VII/2009 and “_idAA+_(sy)” for its Sukuk Ijarah II/2007, Sukuk Ijarah III/2008, and Sukuk Ijarah IV/2009.  The outlook of the rating is “Stable”.  The ratings reflect the strong support from the majority shareholder, the Company’s very strong market position, and improved operating performance.  However, the ratings are offset by the Company’s aggressive capital structure and intense competition within the telecommunication industry. (source)

INDONESIA - BANKING - Bank Muamalat to expand more retail financing

PT Bank Muamalat Indonesia Tbk expanded its retail financing.  As of June 2011, retail finance has reached by 56,92 % while corporate by 43.08 % from total financing Rp 19.8 trillion.  This composition is higher than December 2010 that was 52 % for retail.  The company is planned to increase more for retail financing up to 60 %. (source)

MALAYSIA - CAPITAL MARKETS - SC revises Guidelines for corporate bonds, trust deeds and sukuk

The Securities Commission Malaysia (SC) today issued the revised Private Debt Securities (PDS) Guidelines, Sukuk Guidelines and Trust Deed Guidelines to enhance the regulatory framework for fundraising and product regulation in the Private Debt Securities and Sukuk markets.

The revised Sukuk Guidelines streamline the approval process and time-to-market for the issuance of corporate bonds and sukuk. The revisions also facilitate a more informed investment decision-making process with additional provisions to ensure greater disclosure of relevant information to investors.

The revised Sukuk Guidelines provide greater clarity on the application of Shariah rulings and principles endorsed by the SC�s Shariah Advisory Council in relation to Sukuk transactions while the Trust Deed Guidelines improves disclosure standards and protection for corporate bond and sukuk holders.

Malaysia is currently the largest sukuk market in the world, accounting for about 65% of the global issues, while the bond market is the 3rd largest as a percentage to GDP in Asia (ex-Japan). The revised Guidelines will help Malaysia maintain its leading position by continuously attracting both local and international issuers and investors into the corporate bond and sukuk markets.
 

The revised Private Debt Securities Guidelines, Sukuk Guidelines and Trust Deed Guidelines will supersede the Guidelines on the Offering of Private Debt Securities, Guidelines on the Offering of Islamic Securities, Guidelines on the Minimum Contents Requirements for Trust Deeds and all the related Practice Notes respectively. (source -Download Sukuk Guidelines - Trust Deeds - Private Debt Securities)

SUKUK - UK firm to launch first European corporate sukuk

LONDON | Mon Aug 16, 2010 11:21am BST

LONDON (Reuters) - A small British manufacturer has become the first company in Europe to raise funds through sukuk, kicking off an industry which has struggled to find traction in the wake of debt worries in Islamic finance centre Dubai.

International Innovative Technologies, a maker of industrial milling machines in northeast England, has raised $10 million (6 million pounds) through a private-equity-style sukuk to help develop new products, its legal adviser, Norton Rose, told Reuters.