Bloomberg Launches New Corporate Sukuk Index for Islamic Finance

| September 18, 2012 | 0 Comments

KUALA LUMPUR, Malaysia–(BUSINESS WIRE)–

Bloomberg today announced further commitment to the Islamic finance
market with the launch of a Malaysian Ringgit (MYR) corporate sukuk
index, developed with the Association of Islamic Banking Institutions
Malaysia (AIBIM) and Bursa Malaysia. The Bloomberg AIBIM Bursa Malaysia
Corporate Sukuk Index will serve as a benchmark for investors of
ringgit-denominated Islamic bonds in Malaysia, the world’s biggest sukuk
market.

Global demand for corporate and sovereign sukuk has grown over the last
decade and in Malaysia, as low borrowing costs continue to drive
issuance. Malaysia is having a record year for sales of corporate sukuk,
with potentially about 20 billion ringgit of Shariah-compliant debt in
the pipeline, according to data compiled by Bloomberg.

The new corporate sukuk index will track and measure the performance of
the most liquid and credit-worthy Islamic corporate bonds in Malaysia.
Bloomberg will calculate the Index daily, with rates and prices
contributed by member banks of AIBIM.

“Bloomberg has been investing in Islamic finance globally and this
announcement reaffirms our commitment to Malaysia’s development as a
global Islamic financial centre,” said Kamel Hajri, Bloomberg’s Business
Manager for Islamic Finance. “This collaboration means we now have a
complete portfolio of Islamic finance indices and tools for Malaysia. We
look forward to expanding our joint efforts with key industry players to
further enhance market transparency and liquidity, with the goal of
fulfilling investor demand for more robust Shariah-compliant solutions.”

Dato’ Mohd Redza Shah Abdul Wahid, President of AIBIM, said, “With the
diversification of the Islamic finance market, there is a growing need
for access to accurate, timely and comprehensive data. Strategic
collaboration to develop localized financial products will help
stimulate the long-term growth, competitiveness and sustainability of
Islamic finance services.”

“As a top global sukuk underwriter, we see domestic and foreign issuers
actively tapping the Malaysian sukuk market,” said Dato’ Mohamad Zabidi
Ahmad, CIMB Malaysia’s Head of Islamic Treasury. “By providing accurate
pricing and benchmarking, this index will improve portfolio management
and contribute to a more robust bond market.”

Deputy Governor Muhammad Ibrahim said, “Malaysia continues to develop
and strengthen Islamic finance with increasingly sophisticated products
and supportive infrastructure. The launch of the Bloomberg AIBIM Bursa
Malaysia Corporate Sukuk Index is timely as it will contribute to better
price transparency that enables investors to make informed investment
decisions.”

This is the third sukuk index Bloomberg, in collaboration with Bank
Negara, AIBIM and Bursa Malaysia, has developed for the Malaysian
market. In 2011, Bloomberg launched the AIBIM Bursa Malaysia Sovereign
Index (BMSSITR) and the Malaysia Sukuk Ex-MYR Index (BMSSUTR), as part
of its Islamic Finance Platform (ISLM), a broad set of data, analytics
and news dedicated to Shariah-compliant products and services.

This latest index was announced at the third Global Islamic Finance
Forum (GIFF) in Kuala Lumpur held from 18-20 September, where global
industry practitioners, regulators, Shariah scholars and business
communities discuss prospects for the Islamic finance industry.

For more information on Bloomberg’s Islamic Finance Platform visit http://www.bloomberg.com/professional
or go to ISLM on the Bloomberg Professional service. Customers and
prospects can get more details from Bloomberg’s Head of ASEAN Sales,
Nitin Jaiswal at mailto:njaiswal@bloomberg.net
or +65-6212-1520.

About Bloomberg

Bloomberg, the global business and financial information and news
leader, gives influential decision makers a critical edge by connecting
them to a dynamic network of information, people and ideas. The
company’s strength – delivering data, news and analytics through
innovative technology, quickly and accurately – is at the core of the
Bloomberg Professional service, which provides real time financial
information to more than 310,000 subscribers globally.

About AIBIM

The Association of Islamic Banking Institutions Malaysia (AIBIM) was
established in 1995. AIBIM’s objectives, among others are to foster the
establishment and the conduct of sound Islamic banking system and
practices in Malaysia in cooperation and consultation with Bank Negara
Malaysia or other domestic regulatory bodies, to promote and represent
the interests of members, to promote Islamic banking related education
and training programmes and to work in collaboration with other similar
associations worldwide.

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