Securities Commission committed to facilitating sustainable financing, investment ecosystem

KUALA LUMPUR, March 24 — The Securities Commission Malaysia (SC) will continue to facilitate the development of Malaysia’s sustainable financing and investment ecosystem by leveraging on the country’s position as a leader in the Islamic…

PNB not issuing any exchangeable bond programme

PETALING JAYA: Permodalan Nasional Bhd (PNB) said its board of directors has not approved nor considered the issuance of any exchangeable bond programme, contrary to a recent Bloomberg report about the state-owned fund manager considering its first sale of exchangeable bonds.

“PNB always continually assesses and examines the various means and methods to raise capital for our domestic and global investment activities, including debt instruments such as term loans, sukuk and exchangeable bonds. However, for clarity purposes, to date the PNB board of directors has not approved nor considered any exchangeable bond programme to be issued by PNB,” a PNB spokesperson said in a statement.

According to the spokesperson, such existing or future borrowings, if undertaken, applied and will only apply to PNB’s proprietary portfolio and do not involve its unit trust funds which are segregated and distinct from the proprietary fund of PNB, the company.

The spokesperson noted that the operations and investments of the unit trust funds such as Amanah Saham Bumiputera and Amanah Saham Nasional are strictly regulated by the Securities Commission (SC).

Under the rules of the SC, no unit trust fund manager, including PNB, is allowed to undertake any borrowings for the funds or encumber the assets under these funds for any purpose.

“Accordingly any speculation on this matter is unnecessary and concerns regarding the charging of our unit trust assets are unfounded.

“We wish to state that as the custodian to the wealth of millions of Malaysians, PNB is always guided by its mandate in all of the investment decisions that we make and committed to the highest standards of probity and integrity.”

Yesterday, Bloomberg reported that PNB is exploring options to raise funds for overseas investments, including an offering of exchangeable bonds or notes backed by shares in a listed company.

Quoting sources, the report said that PNB recently asked investment banks to submit proposals for the potential deal but the asset manager had not made a final decision about the underlying stocks for the potential deal.

Alliance Bank plans up to RM2.5b sukuk programme

KUALA LUMPUR, March 13 — Alliance Islamic Bank Bhd, a wholly-owned unit of Alliance Bank Malaysia Bhd (Alliance Bank), plans to undertake a perpetual sukuk programme of up to RM2.5 billion in nominal value and a RM300 million Islamic commercial…

Alliance Islamic Bank sets up sukuk programmes of up to RM2.8 billion

PETALING JAYA: Alliance Bank Malaysia Bhd’s wholly owned subsidiary Alliance Islamic Bank Bhd is establishing sukuk programmes of up to RM2.8 billion.

In a filing with Bursa Malaysia, the bank said it has lodged with Securities Commission Malaysia a perpetual sukuk programme of up to a global limit of RM2.5 billion and an Islamic commercial papers programme (ICP programme).

The sukuk programme comprises the issuance of a senior sukuk murabahah of up to RM1.2 billion (senior sukuk), Islamic Tier 2 sukuk murabahah of up to RM800 million (T2 sukuk) and Islamic additional Tier 1 sukuk wakalah of up to RM500 million (AT1 sukuk).

Meanwhile, the ICP programme comprises the issuance of sukuk murabahah of up to RM300 million.

Proceeds of the sukuk programmes will be used for Alliance Islamic’s syariah-compliant general banking, working capital and other corporate purposes, including the refinancing of any financing incurred and/or any financing instruments issued by Alliance Islamic.

In addition, the AT1 sukuk and T2 sukuk are intended to qualify as Basel III-compliant Additional Tier 1 regulatory capital and Tier 2 regulatory capital respectively of Alliance Islamic in accordance with the Capital Adequacy Framework for Islamic Banks (Capital Components) issued by Bank Negara Malaysia (BNM) on Feb 2, 2018.

Alliance Bank said approval from BNM for the establishment of the sukuk programme was received on Dec 6, 2018.

Alliance Investment Bank is the principal adviser, lead arranger, lead manager and facility agent for the sukuk programmes. Alliance Islamic is the syariah adviser for the sukuk programmes.

TH to develop new asset allocation strategy, says CEO

KUALA LUMPUR: After a successful turnaround and restructuring programme of its underperforming assets, Lembaga Tabung Haji is now planning to develop a new asset allocation strategy, said group managing director/chief executive officer Datuk Seri Zukri Samat. He said the pilgrim fund plans to reallocate its asset mix, especially assets that are heavily exposed to risks, […]

Tabung Haji working on new asset allocation strategy, says CEO

KUALA LUMPUR, March 1 — After a successful turnaround and restructuring programme of its underperforming assets, Lembaga Tabung Haji is now planning to develop a new asset allocation strategy, said group managing director/chief executive officer…

MBSB's after tax profit for 2018 jumps by 54.01pc to RM642.4m

KUALA LUMPUR, Feb 28 — The Malaysia Building Society Berhad (MBSB) Group today announced that its profit after tax for the financial year ending December 31, 2018 had a significant jump of RM225.27 million or 54.01 per cent from the previous…

Corporate earnings unlikely to excite stock market: Affin Hwang AM

KUALA LUMPUR: Corporate earnings delivery will not significantly influence the Malaysian capital market this year as catalysts are expected to come from the external front, according to Affin Hwang Asset Management Bhd (Affin Hwang AM).

Its managing director, Teng Chee Wai, said for 2019, the company expects a single-digit upside in the FBM KLCI at around 8% to 10%, partly buoyed by recovery in global growth as the economic cycle matures.

“2019 is a year that the markets are going to respond more towards macro policies rather than earnings. And I do not see price-earnings expansion to be one big factor this year for the market because there is a very little growth,” he told a press conference after presenting Affin Hwang AM market outlook and company briefing here today.

“With 5% in (consensus) earnings (estimates) growth, I don’t expect this year to be a double-digit year (for the FBM KLCI),” he said, noting downward revisions in earnings are likely if there is slowdown in global economic activities.

Asked whether 2019 is a good year to invest in stocks, Teng warned of risks and uncertainties in the market such as the ongoing trade dispute between the United States and China.

“There is no such thing as the best time to invest … you must be mindful of the risks, and asset allocation is the way forward,” he added.

Nevertheless, Teng said given the positive development in the US-China trade talks, coupled with changes in policy by the Federal Reserve, he is fairly confident that the market will improve at some point in the second half of the year.

On Affin Hwang AM’s outlook, Teng said the fund manager is confident that it will surpass the RM50 billion mark in assets under administration (AUA) this year and reach the RM52 billion level.

He said the firm’s AUA grew 0.84% or RM400 million to RM47.8 billion as at end of 2018 from RM47.4 billion in late 2017.

Earlier at the press conference, Affin Hwang AM’s Islamic entity, Aiiman Asset Management Sdn Bhd, launched its maiden fund called Aiiman Asia Pacific (ex-Japan) Dividend Fund, which marks its foray into the retail market.

Aiiman managing director Akmal Hassan said the fund is suitable for retail investors who want regular income distribution and capital gains, and have a medium- to long-term investment horizon and moderate risk tolerance.

The fund will invest a minimum of 70% of the fund’s net asset value (NAV) in syariah-compliant equities and a maximum of 30% of its NAV in sukuk, syariah-compliant money market instruments and/or deposits.

The base currency of the fund is in ringgit with a minimum investment amount of RM1,000.

M’sia set to attract more demand for sukuk

KUALA LUMPUR: Being the world’s biggest sukuk issuer, Malaysia is set to attract more demand for shariah-compliant bond worldwide via an initiative taken by the Qatar Financial Centre (QFC) to serve the US$2 trillion global Islamic finance market, said the Bond and Sukuk Information Exchange (BIX Malaysia). BIX manager Ahmad Al Izham Izadin said there […]

Global sovereign sukuk issuance to rise to US$100 billion by 2020

KUALA LUMPUR: Moody’s Investors Service Ltd expects total gross sovereign sukuk issuance, including short-term securities, will recover in 2019 and surpass its record-high volumes of US$93 billion (US$1= RM4.088) reached in 2012, by 2020. Moody’s vice-president and senior analyst Alexander Perjessy said the international rating agency projects global sovereign sukuk issuance to increase to US$87 […]