posted by Christopher Holton The Islamic Financial Services Board (IFSB) is seeking to establish some clarity in the murky world of regulation of Shariah-compliant bonds, also known as sukuk. The bone of contention centers around whether sukuk are indeed compliant with shariah and what role national laws and regulations play. Such issues have gained prominence […]
posted by Christopher Holton The Persian Gulf island nation of Bahrain has decided to cancel a billion dollar conventional bond deal and settle for a Shariah-compliant bond (sukuk) deal. The reason for the cancelation sheds light on the hidden risks involved in Shariah-compliant bonds. Bahrain scrapped the conventional bonds because they would have been rated […]
The Shariah Finance Trojan Horse Shows Up on CNBC.com
On December 21, 2017 · In Dana Gas, Islamic Bonds, Islamic Finance, Shariah Bonds, Shariah Finance, Sweden
by Christopher W Holton One of the chief concerns from Shariah-compliant finance is that it can be, and has been, used to put people at ease about the true nature of shariah and the threat that is poses. Shariah-compliant finance is also a weapon that Islamists can use to force shariah upon non-Muslims. Both of […]
More fallout from the Dana Gas sukuk debacle
On June 15, 2017 · In Dana Gas, Islamic Bonds, Islamic Finance, Shariah Bonds, Shariah Finance, SUKUK
posted by Christopher W. Holton A decision by Abu Dhabi-listed Dana Gas to declare $700 million of its sukuk invalid has sent shivers through the Islamic finance industry, raising concern about the safety of sharia-compliant debt instruments in general. Dana said on Tuesday it had received legal advice that its sukuk, or Islamic bonds, which […]
posted by Christopher W. Holton Here we see illustrated a real pitfall of Shariah compliant finance. Dana Gas of Abu Dhabi previously issues $700 million worth of Shariah bonds, also known as sukuk. Now, the firm is informing creditors that its sukuk are actually NOT shariah compliant and is proposing that they be traded for […]
by Christopher W. Holton Indonesia’s finance ministry sold 3.03 trillion rupiah ($227.97 million) of Islamic bonds at an auction, below the indicative target of 5 trillion rupiah, its financing and risk management office reports. http://timesofindia.indiatimes.com/business/international-business/indonesia-sells-3-03-trillion-rupiah-of-islamic-bonds-below-target/articleshow/59124027.cms
by Christopher W. Holton Increasingly, Shariah-compliant forms of financing are supplanting and replacing conventional financing in the Islamic world. For years, Pakistan has used conventional financing for infrastructure projects, such as bridges. Now the government is embarking on a plan to replace conventional methods with Shariah-compliant financing. While it is not a big surprise that […]
National Australia Bank is considering selling up to $US500 million ($482m) in Islamic bonds in what would be the country’s first issuance of sharia-compliant debt securities. http://sheikyermami.com/nab-set-to-join-rush-for-islamic-cash/comment-page-1/
The central bank of Indonesia is searching for a bank to sign up as primary dealer for short-term sukuk, or Shariah-compliant bonds, issued by the International Islamic Liquidity Management Corp (IILM), a body it helped establish in 2010 to attempt to address the chronic lack of liquidity in shariah compliant money market instruments. Bank Indonesia is one of […]
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