Thursday May 20, 2010

Five deals worth RM407.5mil signed at Islamic Economic Forum

KUALA LUMPUR: Five separate memoranda of agreement (MoA), worth a total US$125.3mil (RM407.54mil), were signed at the 6th World Islamic Economic Forum yesterday.

The first MoA, valued at US$30mil, was on strategic partnership for the global distribution of Islamic investment products involving Asian Finance Bank, European Finance House and PT Bank Muamalat Indonesia TBK.

The MoA is set to initiate, promote and develop Islamic investment products, including a global sukuk fund and possibly shariah-compliant structured notes.

Asian Finance Bank chief executive officer Datuk Mohamed Azahari Kamil said at the initial stage they were looking at raising US$100mil worth of subscription for the Islamic products.

“And as Asian Finance and and European Finance House are both under the Qatar Islamic Bank Group, we have no doubt these Islamic investment products will be sought after immediately following the agreement.

“We decided to start off with Indonesian market due to its high demand for Islamic financial providers,” he said in a statement.

The second MoA was on the collaboration on customisation of Islamic investment products and hedging solutions between Bank Islam Malaysia Bhd and Barclays Capital Markets Malaysia Sdn Bhd, worth US$33mil.

Under this agreement, Barclays will work together with Bank Islam in developing Islamic risk management solutions.

Bank Islam is also looking at joining forces with Barclays in designing products for its own hedging strategies and purposes.

Bank Islam managing director Datuk Sri Zukri Samat said the agreement represented an excellent platform for cooperation between the two financial instuitions. Previously, Bank Islam and an affiliate of Barclays entered into a transaction where the affiliate acted as a counterparty as part of a hedging strategy in connection with an investment product that Bank Islam offered to its customers totalling to RM110mil.

The third MOA was for the sale and purchase of Malaysian fresh fruits and frozen chicken between Exotic Ecofarm Sdn Bhd and Cupid Trading Agency from Bangladesh valued at US$7.3mil.

The fourth and fifth agreements with a total value of US$58mil involved Muslim Sdn Bhd with Most Glory Corp Ltd and Asia EP.

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