Sukuk Trail Emerging-Market Debt on Yield Hunt

Islamic bonds trailed emerging-market debt for a second year as foreign funds chased higher yields, a trend that Union Investment Privatfonds says is likely to continue in 2013.

Global Shariah-compliant notes gained 9.6 percent in 2012, according to the HSBC/Nasdaq Dubai US Dollar Sukuk Index, compared with 18.5 percent for developing-nation securities, JPMorgan Chase & Co.’s EMBI Global Composite Index shows. The average yield on dollar sukuk dropped 1.18 percentage points to 2.81 percent, while that for emerging-market paper fell 1.58 percentage points to 4.50 percent, according to the two gauges.

Developing-nation bond funds extended their inflow streak to 28 weeks in the period ending Dec. 21, according to researcher EPFR Global, fueled by monetary easing in the U.S., Japan and the euro area. Debt from investment-grade Malaysia, which accounts for 62 percent of outstanding sukuk, returned 11 percent last year, compared with 19 percent for Russia and 17 percent for Peru, according to JPMorgan indexes.

“This year can be characterized as the hunt-for-yield year,” Sergey Dergachev, a Frankfurt-based senior portfolio manager at Union Investment Privatfonds, which oversees $8.5 billion of emerging-market debt, said in a Dec. 27 interview. “The chance to see this trend continue, where everything that has yield on it performs well, is very good.”

Higher Sales

Sukuk returns trailed developing-nation bonds by just 1.3 percentage points in 2011, after beating them by 0.8 percentage point the year before, the HSBC/Nasdaq and JPMorgan gauges show.

The average yield on global Islamic notes reached a record low of 2.76 percent on Nov. 30, according to the HSBC/Nasdaq index. The gap between the average yield and the London interbank offered rate, or Libor, shrunk 91 basis points, or 0.92 percentage point, to 182 basis points in 2012.

Falling yields have helped push worldwide sales of debt that comply with Islam’s ban on interest to an unprecedented $46.3 billion in 2012, surpassing last year’s record of $36.7 billion, data compiled by Bloomberg show. Sales may be even higher in 2013 as new countries including Oman, Tunisia and Egypt tap the Shariah-compliant capital market for the first time, CIMB Group Holdings Bhd. (CIMB) and OCBC Al-Amin Bank Bhd. said in December.

Foreign funds boosted their holdings of Malaysian government securities by 29 percent to a record 221.9 billion ringgit ($73 billion) last year through October, according to the central bank. Overseas investors increased ownership of Indonesian sovereign bonds by 21 percent to 270.5 trillion rupiah ($27.8 billion) in 2012, finance ministry figures show.

Stabilizing Yields

The inflows helped push the yield on Malaysia’ 3.928 percent sukuk due June 2015 down by 1.38 percentage points in 2012 to 1.28 percent, while that for Indonesia’s 8.8 percent Islamic dollar note due April 2014 fell 135 basis points to 1.91 percent, according to data compiled by Bloomberg.

“Stimulus isn’t going to play as big of a role in 2013,” said Tan Chee Wee, the Kuala Lumpur-based head of fixed-income research at Maybank Investment Bank Bhd., the third-largest underwriter of Islamic bonds. “We have already seen a lot of foreign inflows come into Malaysia,” he said in a Dec. 27 interview, adding that he didn’t expect yields to fall much further this year.

The premium investors demand to hold sukuk issued by Dubai over Malaysia’s investment-grade Islamic bonds narrowed to a record low of 75 basis points on Dec. 27, data compiled by Bloomberg show. The yield on the emirate’s securities, which are not rated by any of the three major companies, dropped 3.44 percentage points in 2012 to 2.13 percent.

Qatar, Bahrain

The yield on the 2.099 percent Shariah-complaint notes from Qatar, another major issuer of Islamic debt, declined 12 basis points to 1.98 percent since they were issued in July, data compiled by Bloomberg show. The yield on Bahrain’s 6.247 percent Islamic securities due June 2014 reached a record-low of 1.77 percent on Dec. 31 and fell 148 basis points in 2012.

“The sovereign universe for sukuk investors consists primarily of stable but also lower-yielding countries, which have certainly lagged the performance of higher-yielding countries in 2012,” said Union Investment’s Dergachev. “The higher-yielding the credit was, the better it has performed.

(Bloomberg / 02 Jan 2013)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Cost-plus Finance Allowed, Interest Prohibited in Islam

The argument that earning profit is like earning interest by lending money (where profit is fixed like the rate of interest on loan) is indeed an age-old debate which has also been pointed out 1,434 years ago in the holy Qur’an.

“Those who devour usury will not stand except as one whom the Evil one by his touch hath driven to madness. That is because they say: “Trade is like usury,” but Allah Hath permitted trade and forbidden usury. Those who after receiving direction from their Lord, desist, shall be pardoned for the past; their case is for Allah (To Judge); but those who repeat (the offence) are companions of the Fire: They will abide therein (for ever).” (Al Qur’ān 2:275)

Money lenders have been trying to claim that earning through trade is like earning interest on loan, but ‘by permitting trade and prohibiting interest’ Islam clearly declined the disbeliever’s view that ‘trade is like usury’. Murabaha is basically a trade activity (quite different from lending money on interest) because under Murabaha the financier purchases and sells goods on credit after adding a margin of profit over the cost of purchase; whereas under interest based lending financier does not take part in any economic activity, but just lends money and gets back along with interest over principal amount after a set time.

There are around 10 Qur’ānic verses and 23 Hadith on prohibition of Interest (Riba) of different nature. According to Shariah, Riba technically refers to the “premium” that must be paid by the borrower along with the principal amount as a condition for the loan or for an extension in its maturity. So, Riba has the same meaning as interest in conventional banking in accordance with the consensus among all Islamic schools of thoughts. There are two major types of Riba in Shari’ah.  The first (Riba al Nasiah) describes prohibition of lending money on interest whereas the second (Riba al Fadl) prohibits all unfair commercial transactions that leads to exploitation. Since Murabaha does not fall under any category of Riba described in Hadith, it cannot be rated alike lending on interest. Furthermore, there are operational differences between lending money on interest and cost plus finance.

Lending Money on Interest

Cost Plus Finance (Murabaha)

Financier lends money to earn interest over principal amount without bearing risks associated with the borrower’s economic activity. Financier practically doing trade by purchasing and selling goods on credit at a price set after adding profit margin over cost of purchase. Money is considered a kind of asset and accumulation of monetary asset is made out of monetary asset without changing its form from money to goods. Money is treated as means to measure value of goods and medium of exchange. Value of goods may enhance only after selling the bought goods to customers. Financier has nothing to contribute towards Government revenue. Financier pays sales tax on trade volume to the Government. Financier does not interfere in business activity of the borrower and does nothing to help the borrower get competitive prices for sought goods or commodities. Financier bargains with the supplier to avail discount in price of goods so as to offer competitive prices of the goods to the customers. Financier has nothing to do with quality of the goods sought by its customer. Financier bears associated risks on quality of the goods sold to its customer. Through lending loan on interest the Financier increases customer’s demand force which may inflate the economy with limited resources for suppliers. Purchase and sale by financier boosts production process and flow of liquidity from the customers to the bank and reduces inflation by slicing purchasing power. Rate of interest on loan amount is related to time factor. There is no interest and the price value of sold goods is not related to time factor. Borrower needs to repay the instalment of interest and principal on due dates. Customer is supposed to repay part of total price value of goods on due dates. Financier does not allow the borrower to reschedule the instalment on due dates even in case of any genuine financial crisis. Penalty may be charged for that. In case of genuine financial crisis, the financier does allow the buyer to reschedule the due instalment dates without any penalty. Financier need not to get any registered sale tax number. Financier needs to obtain registered sales tax number. Financier has nothing to do in collection and submission of sales tax. Financier used to pay and charge sales tax; and submit to sales tax department. Financier need not to have any purchase officer with specialisation in trade. Financier does need to have purchase officer with specialisation in trade.      

Besides above operational differences, it is important to analyse and evaluate the impacts of interest based lending and cost plus finance on the economy. Interestingly, Cost Plus Finance has the potential to increase economic growth by pushing consumption, production and Government revenue with putting customers demand forces under control with flow of liquidity from customer to bank segment. 

We can evaluate the differential impact of interest based lending and cost plus finance by a hypothetical study. Suppose there are two types of banks in our economy. One is lending on interest and the other is offering cost plus finance. Both can offer same rate of returns to their depositors (e.g. 8% annual interest or dividend to the depositors) and charges 15% annual interest on loans or adds 15% profit margin (over cost of purchase) in case of cost plus finance. Since bank extending cost plus finance with intention to get competitive quote for the goods, bargains with the supplier and pass on the discounts to the buyer, it helps the customer pay less for availing required goods; and also provides more revenue for the Government.

The practice of cost plus finance by banks can help us to -

Increase in consumption (as the consumer takes goods from bank on credit) to increase potential for economic growth rate. Decrease in prices as purchase of goods by bank allows the supplier to produce more; and increase in productivity with constant demand would lead to fall in prices. Control in demand side inflation because the customer does not get liquidity rather would need to repay value of bought goods back to the bank; and the customer needs to transfer access of income over expenditure to repay cash to the bank.

We hope that the RBI would introduce cost plus finance under Para banking as an optional product with intention to keep inflation under control with increase in economic growth rate. Hopefully, money lenders would not argue again and again that trade is like lending on interest.

(Radiance Views Weekly / 31 Dec 2012)

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Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Many advantages of Islamic banking

As Oman's first Islamic bank is set to commence operation in few weeks, I would like to know whether Sharia-compliant banks will be able to offer loans at a lower cost? What are the advantages of an Islamic banking customer viz-a-viz its conventional counter-parts?

Salem al Habsi, Seeb (by e-mail)

A: When pricing their products, Islamic banks will have to consider various factors, viz. rate-ceilings imposed by the Central Bank; cost of funding; operating costs; volume of transactions and competitive conditions in the banking industry. Rate-ceilings imposed by the Central Bank apply to both conventional and Islamic Banks, hence this factor cannot influence the pricing of Islamic bank's loan favourably or unfavorably. Cost of funding for an Islamic bank is likely to be higher than a conventional bank which may have been in existence for a longer period, has a network of branches and a large customer base. 

A new Islamic bank will need to develop its brand name, open branches and attract customers with a fresh start and may have to offer higher profit rates to attract new customers. This will result in higher cost of funding for Islamic banks. Operating costs are also expected to be higher for Islamic banks being new to the market. They're hiring staff at a premium to the market. Also establishing new business is generally costlier than existing business. Additionally, Islamic banks are required to hire Sharia' Scholars to work on their Sharia' Board, Sharia' Auditors and Sharia' Compliance staff, which the conventional banks are not required to hire for delivery of their products and services. 

These higher operating costs for Islamic banks will squeeze their profit margins even further. Volume of transactions for Islamic banks are expected to be low in the initial years, resulting in higher unit cost of offering products to the customers. 

Since all of these factors work in favor of the existing conventional banks, they give them an advantage over Islamic banks in pricing their products more competitively. When Islamic banks will enter the market, the conventional banks would like to defend their territories, markets and customers and given the advantages in cost they enjoy over Islamic banks, they can price their products quite aggressively to ensure they retain the market share. 

On the other hand, Islamic banks can follow the "market penetration strategy" and price their products lower to attract new customers and win market share. 

In the initial years therefore, they may incur operating losses to gain market share. If Islamic banks follow this strategy, it will benefit the customers since their products will be priced lower than their conventional counterpart.

The biggest advantage the customer of an Islamic bank enjoys is faith-based, giving him the satisfaction that he is dealing with Sharia-compliant products and services. Economically or financially, the pricing of products offered by both Islamic and conventional banks is likely to be at par, in order for them to stay competitive in the market.  

Can you give me some insights into the qualification required to become an employee of an Islamic bank? Is there any specialised course for Islamic banking professionals? If so, give me contacts of those institutions offering such programmes within the country of outside. 

 Ibrahim Ali Khan, Sohar (by e-mail)

A: Staff in Islamic banks are required to be proficient both in banking and Islamic Modes of Financing with some knowledge of Fiqh-ul-Muamalat. There are several institutions around the world which offer professional qualifications in Islamic Finance, some of which are listed below:     

DIFC –based Universities like CAS School, INCEIF Malaysia,  CIMA Islamic Finance Certification programme UK, various universities in the UK offering diplomas or graduate programmes in Islamic Finance, Institute of Islamic Banking & Insurance UK, Dar-ul-Ulum, Karachi and University of Karachi.

Due to shortage of people properly qualified in Islamic Finance, most Islamic banks hire professionals from conventional banks and train them in Islamic banking. Various training organisations have therefore, sprung up to address training needs of staff in Islamic banks.

(Times Of Oman / 31 Dec 2012)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Indonesia: Minimum Down Payment Set for Islamic Financing

In a move to help curb consumer financing growth, the Finance Ministry has set stricter down payment requirements on Islamic financing for automotive purchases. 

The new regulation, which will apply to all non-bank Islamic financing institutions, requires a down payment of 20 percent for two-wheeled vehicle purchases and a 25 percent down payment for four-wheeled vehicles. The purchase of commercial four-wheeled vehicles — such as trucks or buses — requires a 20 percent down payment. 

Previously, down payment requirements had not been regulated for Islamic financing companies, with firms typically requiring either no down payment or a down payment of no more than 10 percent. 

The Finance Ministry has since June imposed similar down payment requirements for conventional financing of automotive purchases. 

However the failure to regulate Islamic financing left a loophole that allowed customers to take advantage of lower, unregulated rates. 

“This regulation is aimed to prevent such regulatory arbitrage between conventional and Islamic financing companies,” said Yudi Pramadi, the Finance Ministry spokesman, in a release on Friday. 

“It will create a level playing field for all financing companies,” Yudi said. 

The new regulation will go into effect on Tuesday, the same day the new Financial Service Supervisory Agency (OJK) will take over the job of supervising non-bank financial institutions. 

This responsibility had previously been handled by the Finance Ministry’s Financial Institution Supervisory Agency (Bapepam-LK). 

Bank Indonesia, the central bank, issued down payment regulations for Islamic banks in November, requiring a 25 percent down payment for two-wheeled vehicle purchases and a 30 percent down payment for four-wheeled vehicles, bringing the Islamic banking requirements in line with automotive down payment requirements implemented by their commercial counterparts since June. 

The central bank’s new regulation, however, will not go into effect until April 1. The central bank will not hand their supervisory authority over banks to the OJK until January 2014. 

(Jakarta Globe / 31 Dec 2012)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Islamic finance industry enters 2013 with new strength

DUBAI, Dec. 29 (Xinhua) -- The year 2012 marked a turning point for banking on Islamic principles as new markets and new regulations in the Mideast helped the sector to flourish.

According to Ernst and Young, globally assets managed in line with Shari'ah will reach in 2013 an all-time high, amounting to 1. 8 trillion U.S. dollars, up from 1.2 trillion U.S. dollars in 2012.

Neither the ongoing turmoil in the Middle East nor the Euro zone debt crisis could prevent Islamic banks in the Middle East from reaching out to new markets and more business. While issuances of Islamic bonds, known as sukuk, flourished and new markets like Egypt and Oman embraced the banking in line with Shari'ah by setting up new laws and regulations to remove legal hurdles for Islamic banks.

Run on Islamic bonds

News issuances of Islamic bonds reached 40 billion U.S. dollars globally in 2012, up from 36 billion dollars last year, according to Malaysian Bank CIMB. In July, the Gulf state of Qatar launched one of the largest sukuk with a volume of four billion dollars. The issuance attracted bids worth a whopping 25 billion dollars. The proceeds will be used to revamp the country's infrastructure in order to be ready to host the FIFA 2022 football world cup.

But the sector suffered a setback when Dana Gas from the Gulf sheikhdom of Sharjah failed to settle a one billion dollar sukuk which was due on Oct. 31 since payment delays from clients in Egypt and in Kurdistan. However, Dana agreed with creditors to restructure the sukuk on Dec. 1.

Crossover markets

Meanwhile, the Egyptian cabinet approved on Dec. 23 draft law on the issuances of sukuk. Under the draft law, new sectors such as individual and investment funds, will now be able to finance government projects through Islamic bonds. The draft law was referred to parliament for debate to be passed and enacted.

The Sultanate of Oman is the latest country which legalized Islamic finance in May 2011. Meanwhile, Oman has amended its national law in order to regulate Islamic banking transactions in order to abide to the royal decree number 69/2012.

As the first Islamic bank in Oman, Bank Nizwa said it would launch operations at the start of 2013. Listed on the Muscat Securities Market on July 5, Bank Nizwa shares have been traded sideways since then.

In addition, "Iraq is contemplating Islamic banking legislation while Libya prepares to implement its Islamic banking framework," said Ashar Nazim, partner for global Islamic banking at Ernst and Young.

Gulf region leads

Although Islamic finance, which forbids interest and trading in shares of "un-ethical" businesses (like producers of weapons of alcohol), is a global phenomenon, the Middle East remains the industry's nucleus. Saudi Arabia is the biggest market for Islamic banking followed by Malaysia and UAE, Nazim said.

According to the report, the Islamic banking industry in Saudi Arabia, with an estimated 207 billion dollars of Shari'ah- compliant assets, was ranked first in 2011. Malaysia ranked second with total assets of 106 billion dollars and the third was United Arab Emirates (UAE) with 75 billion dollars.

Due to the industry's bullish outlook, investors also sent shares of Islamic financial institutions higher. UAE-based Ajman Bank whose shares were listed on the Dubai Financial Market DFM gained 68 percent in value in 2012, outperforming the DFM general index which climbed 17 percent higher.

Al Salam Bank Bahrain shares which were traded in Manama and Dubai rose by 39 percent since Jan. 1. In the third quarter of 2012, the bank's net profit rose five-fold year on year to hit of 6.8 million Bahraini dinars (18.04 million dollars).

Looking abroad

Other Islamic banks prepare to expand abroad. Masraf Al-Rayan from Doha, Qatar, expressed interest in buying troubled Islamic Bank of Britain, known as IBB, but the deadline looms as IBB's largest shareholder Qatar International Islamic Bank wat to have clearity over a possible deal until January, according to sources. "That the Qatar Central Bank separated Islamic banking from conventional banking in 2012 by law helped the Shari'ah-finance industry a lot," said Syed Hasan, general manager wholesale banking at Masraf Al-Rayan.

Frascesco Pavoni, head of financial services at German consultancy Roland Berger, said that all Gulf states shall follow Qatar's example. By separating Islamic finance from conventional banking, Islamic banks, often younger and smaller in size that their conventional counterparts, gain a higher radius to expand and reach out to potential clients, said Pavoni.

Islamic finance is not only about the prohibition of interest. Because risky asset management strategies like short-selling, trading naked options or futures are banned under Shari'ah, banks and investors increasingly choose for Islamic financing strategies. "God has permitted trade, but forbidden interest," says the Holy Koran in sura 2, verse 275.

(Shanghai Daily.Com / 29 Dec 2012)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Solar guys shine light on Islamic debt structures

Solar panel and heating installer The Solar Guys have been marketing its first Islamic bond – or sukuk – raising, due in the first half of 2013, to fund a 250MW solar power plant in Indonesia. Commercial director Dane Muldoon is not alone in Australia in being a novice in Islamic finance, let alone Islamic financing in an Asian market. He is sometimes caught off guard by how quickly things are moving for the family-owned Brisbane operation founded by his father and the connections of his joint venture partner at Mitabu Australia.

Rusydi Mitabu (known as Dody), director of Mitabu Australia, is the mastermind of the financing structure. The Solar Guys and Mitabu have formed a joint venture – SGI-Mitabu - to raise $500 million to build and finance the power plant.

“Just as an example,” Muldoon says. “I was saying to him, ‘you have told me we have this land allocation that’s been given to us by one of these [Indonesian] provinces. I asked him ‘where is this field, I want to know more about this field’. He says ‘you know I don’t know’. So he pulls out his mobile phone and rings the secretary of the governor of the province and says, where is that field again?”

Muldoon says Mitabu has a deep knowledge of Islamic finance structures. An Islamic scholar or sometimes a whole board of them are indispensable advisers for any company trying to tap Islamic finance. Mitabu also has the all important relationships with financiers and the right levels of government in Indonesia.

At a seemingly random meeting in Sydney he also discovered Mitabu was talking to microfinancers, which funnel private funds into development projects that might suit this project as it could bring electricity to some regions in Indonesia for the first time.

To avoid the Australian tax issues that have stymied Australian companies tapping Islamic finance they are raising the money via the Malaysian island of Labuan, which has been set up as tax-free to attract foreign capital.

“We like it because it is being treated as an offshore location for tax purposes and any corporate can raise sukuk in any currency so we won’t have a problem with a currency swap,” says Mitabu.

When raising capital offshore, companies typically face exchange rate risk, especially with recent volatility in the Australian dollar, unless they can raise the money in Australian dollars. Only a few companies can do this in selected markets.

The tax barriers in Australia to sukuk include state-based stamp duty and federal capital gains tax due to the transfer of assets into an out of special purpose vehicles under some sukuk structures to avoid the payment of interest, which is banned under Shariah law.

In SGI-Mitabu’s raising, investors will share ownership and profits with the joint venture in the form of rent instead of receiving interest. As in a normal debt raising, the venture uses Commonwealth government bond rates to price the issue as what they receive is in Australian dollars. Mitabu says pricing is the equivalent of somewhere between a 6 per cent and 7.5 per cent interest rate.

Initially SGI-Mitabu is raising about $100 million to fund the first 50 megawatts (MW). They are building it 50MW at a time because it is important to quickly build an income-producing asset, as investors don’t get a return until the asset they own begins making money.

“We expect to complete the first phase of the project in 10 months [of receiving finance],” says Mitabu. “You can start the project on 50MW. So you might produce 2MW in the first month and start paying the investor.”

Muldoon believes they are only just scratching the surface of the potential for their company in Indonesia. Demand for energy there is rising fast in tandem with a target of 25 per cent renewable energy by 2025 from 5 per cent now.

“250 MW – we could be doing that per annum for the next decade without a great deal of stress,” he says. “We’re talking to some provincial governments about undertaking our projects in their region and they are saying our own projected demand is hundreds of times higher [than this].”

Until recently solar was not a priority for the Indonesian government with abundant geothermal and hydro resources. But a big drop in solar panel prices globally is changing that.

“You have a big population base and a very high rate of industry growth, and simultaneously 25 per cent or so of their population don’t have electricity yet,” adds Muldoon.

“When you match those conditions with a couple of other facts, including that Indonesia is an archipelago of 14,000 islands that is not a good fit for a centralised power network, there is a real opportunity.

(Financial Review / 31 Dec 2012)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Tunisia to tap Sukuk market

Tunisia will be introducing its financial transactions to Sukuk for the first time next year alongside Egypt according to CIMB Group Holdings and OCBC Al-Amin Bank with the global sukuk sales tipped to surpass 2012 record of $46 billion in 2013. Sukuk has been attracting countries after the global economic crises took centre stage.

Countries have been using it more frequently in the Middle East and North Africa region and borrowing costs on Shariah-compliant debt have fallen 11.4% points to 2.82%since the end of 2008 as central banks in Europe, the U.S. and Japan pumped funds into their economies to spur growth. Tunisia, Egypt and Oman tapping the market for the first time has been received with positive reactions.

The head of international finance and capital markets at OCBC Al-Amin Bank based in Kuala Lumpur Alhami Mohd Abdan described “sukuk is an attractive channel to explore for those countries looking to expand funding sources,” and encouraged countries to adhere to it because “liquidity in the Islamic space is growing quite significantly.”

Governments in the Middle East and North Africa are tapping the Sukuk market as part of efforts to widen their funding sources after the European debt crises and demand in the sukuk market has been increasing with a growing pool of wealth seeking Shariah- compliant assets. Tunisia which has a sufficinent Muslim population will also use it as a mean of meeting their demands.

Shariah-compliant bonds sold on the international market returned 9.5% this year, compared with 7.2% in 2011, according to the HSBC/Nasdaq gauge. The difference between average yields on sukuk and the London interbank offered rate narrowed 94 basis points in 2012 to 179 basis points as of December 24 2012, according to HSBC.

(The North Africa Post / 27 Dec 2012)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com