INDONESIA - CAPITAL MARKETS - Sharia reverse repo offered to absorb liquidity

JAKARTA: Bank Indonesia (BI) says it is offering reverse repo for sharia banks and business units to reduce bank liquidity in the financial system.

Reverse repo transactions require banks to purchase at least Rp 1 billion (US$110,000) of government sukuk from the central bank and receive margins when they buy back at an agreed price after a specified time period, BI said in a statement published on its website on Tuesday.  (source)

CAPITAL MARKETS - RAM Islamic bullish on Malaysia sukuk market

THE country's sukuk market is likely to be favourable this year with RM261.1 billion sukuk outstanding in the first half, up from RM248.7 billion as end of 2009.


From January till May this year, total new corporate sukuk approved by the Securities Commission stood at RM970 million.

Local rating agency RAM Ratings sees promising sukuk market this year, with government-related infrastructure projects and banks' capital-raising exercises to remain the bulk of the domestic debt capital market's activity.