INDONESIA - BANKING - Indonesia lures Mideast Shariah lenders

www.gulf-times.com - Indonesia’s Islamic finance industry is luring investment from Middle Eastern and European banks as regulator seeks to double Shariah-compliant assets to 10% of the total this decade.
Al Rajhi Bank, Saudi Arabia’s largest, is chasing investment banking business in Indonesia and may open branches “at the right time,” Mudassir Amray, the head of wholesale banking in Kuala Lumpur, said in a February 2 interview. Standard Chartered Saadiq will add more outlets, said Wasim Saifi, the Singapore-based global head of Islamic and consumer banking.
“We are on the lookout for any good Indonesian acquisition, if the price is right,” Mohamed Azahari Kamil, the Kuala Lumpur-based chief executive of Asian Finance Bank Bhd, the Malaysian unit of Qatar Islamic Bank, said in an interview on Monday. “We have to be quick as the Indonesian market is becoming more competitive.”  (source)

INDONESIA - BANKING - Jakarta Becomes Magnet of Shari`ah Assets

www.onislam.net - CAIRO – Taking a share of the booming Islamic finance industry, Indonesia is becoming a magnet of Shari`ah-compliant assets from all around the globe.

“We are on the lookout for any good Indonesian acquisition, if the price is right,” Mohamed Azahari Kamil, the Kuala Lumpur-based chief executive of Asian Finance Bank Bhd, the Malaysian unit of Qatar Islamic Bank, told the Gulf Times on Thursday, February 9. (source)

INDONESIA - FINANCE - Mandala Finance gets US$25 million syndicated Islamic loans

JAKARTA: Mandala Finance secured a syndicated loan of US$25 million from four foreign banks, to support sharia-based financing for motorcycle in 2012.

 

The company enjoys the 4-year loan under murabaha contract, from Islamic Corporation for the Development of Private Sector (ICD), The Islamic Corporation for Insurance and Export Credit (ICIEC), Kuwait Finance House Bhd (KFH), and Unit Investment Fund (IUF) of Islamic Development Bank.  (source)

MALAYSIA - PUBLICATIONS - Islamic Pawn Broking Malaysia (KFH Malaysia)

Islamic Finance Research :"Islamic Pawn Broking – Malaysia" – 29 September 2011

2011-09-29 -You must be logged in to view this report. Download This Report

Extract:

One of the rapidly growing microfinancing products that has flourished over the last decade is the Islamic pawn broking business, alternatively known as Ar-Rahn or Rahnu. Ar-Rahn is an activity whereby a valuable item is collateralised to a debt which may be utilised as payment should the debt remain unpaid within the agreed period.

this report is subscription based - website

INDONESIA - BANKING - Kuwait Finance House eyes Indonesia

Kuwait Finance House (Malaysia) would prefer to go in on a fresh licence, but the group is also looking at some potential acquisitions.

 

Kuala Lumpur: Kuwait Finance House (Malaysia) Bhd (KFH) is keen on expanding in Indonesia to tap Islamic banking opportunities in the world's most populous Muslim nation. (source)

MALAYSIA - Malaysia's Zarinah Anwar calls for greater GCC-Asian connectivity

LONDON: Zarinah Anwar, chairman of the Securities Commission of Malaysia, the securities and capital market regulator, has called on Middle Eastern and Asian countries to spearhead the further expansion of Islamic finance, which in the process would also deepen business and investment linkages between the two regions where the phenomenon is already being practiced on a significant scale. (source)

FINANCE - KFH plans $300 mln fund, seeks Indonesian assets

By Liau Y-Sing, Reuters

KUALA LUMPUR - Islamic fund manager KFH Asset Management will launch a $300 million fund to invest in consumer, healthcare and education businesses by end 20120, its private equity head said on Monday.

KFH Asset Management, a subsidiary of the Malaysian unit of Kuwait Finance House , would raise money from Gulf investors for the fund which would also invest in waste management and light manufacturing companies, Lew Oon Yew said.

CAPITAL MARKETS - SUKUK - Soaring Sukuk - Indonesia

According to KFH Research and NCB Capital, there seemed to be a recovery in the growth of the total value of Sukuk issuance in 2009 and during the first half of this year. KFH Research expects the Sukuk market to maintain its vitality during 2010 and for the foreseeable future. It said that the most important factors that will drive this are stimulus programmes, huge government expenditures and government initiatives that will enforce and develop Sukuk as well as the increasing popularity of Shari'ah-compliant products.

BANKING - Kuwait Finance House in Indonesia ?

Kuwait Finance House May Invest in Islamic Banks in Asia, Al-Anba Reports

Kuwait Finance House (Malaysia) Bhd., a unit of Kuwait’s biggest Islamic bank, is in talks with institutions in Japan to form “strategic alliances” for Islamic banking deals, Al-Anba reported, citing unidentified people familiar with the matter.

Kuwait Finance is interested in buying stakes in Islamic banks in Hong Kong, Thailand, India and Indonesia, the newspaper said.

OPINION - The near future of corporate Sukuk in Indonesia ?

Kuveyt Turk (the Turkish subsidiary of Kuwait Finance House) just issued a Sukuk - the first in Turkey. Fitch Ratings accorded the 100 million USD issue a BBB- (same rating as Kuveyt Turk), whereas Turkey has the same country ratings as Indonesia.

KT probably has roughly 4 billion USD in assets, an Islamic Bank license in DIFC Dubai and Germany and has a rep office in Kazakhstan.  It is furthermore financially backed up by "giant" Kuwait Finance House KFH.

Most Indonesian Syariah banks have no international standing and track record yet and have poor international backing.  Furthermore they often only have approx 200 million USD in assets and therefor are relative dwarfs in international finance.

All elements that flaw possible ratings.  Worse ratings are difficult to place amongst international investors.
Does this mean that corporate Sukuk in Indonesia will be restricted to the big Syariah players and the big Indonesian corporates only ?  Or do you see more possibilities ?  The domestic financial market is still tight on liquidity ...