European Finance House, Asian Finance Bank and PT Bank Muamalat Indonesia TBK sign strategic agreement
At the 6th World Islamic Economic Forum in Kuala Lumpur on 19 May 2010, European Finance House (EFH), Asian Finance Bank (AFB) and PT Bank Muamalat Indonesia TBK (BMI) signed a strategic agreement to establish new and innovative Shari'a-compliant investment products for the Indonesian market.
The exclusive agreement represents a strategic cooperation between AFB, EFH and BMI and sets the framework to initiate, develop and promote Islamic investment products, commencing with the EFH Islamic Liquidity Fund, the EFH Global Sukuk Plus Fund and a range of Shari'a-compliant Structured Notes.
The immediate result of the signing will be a distribution agreement between the banks to position and market the Islamic Liquidity Fund in Indonesia. In brief, the Islamic Liquidity Fund is a wakala-based fund, actively managed by EFH, which will provide a return to investors through wakala placements with banks in the GCC. It is rated AAf S1+ by Standard & Poor's, the first product of its kind to be receive a rating. It is a truly innovative fund, offering Islamic investors a much needed liquidity management tool.
"As AFB and EFH are both part of the Qatar Islamic Bank (QIB) Group, we have no doubt these Islamic investment products will be sought after almost immediately following this agreement with BMI," said Datuk Mohamed Azahari Kamil, Chief Executive of AFB, at the signing. QIB is the first Islamic Bank in Qatar and ranked amongst the world’s largest Islamic financial institutions, with regional representative banks in London, Kuala Lumpur and Lebanon. "At this initial stage, we are looking to raise USD 100 million worth of subscriptions", Mr Azahari added.
Michael Clark, Chief Executive Officer of EFH, commented "This is a very significant event for our three banks and represents our strong commitment to the development and evolution of the Islamic finance sector. We are taking full advantage of the QIB Group's standing and exclusive global network of Islamic financial institutions to promote cross-border cooperation in this field. We very much look forward to the benefits this partnership will yield to our three institutions and our clients."
Contact Details
Anouar Adham
Head of Asset Management, EFH
+44 (0) 207 268 7200
aadham@europeanfh.com
Mohamed Lakis, EFH
Relationship Manager – Financial Institutions and HNWIs
+44 (0) 207 267 7200
mlakis@europeanfh.com
Aleksandar Devic
Fund Manager, EFH
+44 (0) 207 268 7200
adevic@europeanfh.com
Notes for Editors:
European Finance House (EFH)
EFH, a 66% subsidiary of Qatar Islamic Bank (QIB), is a UK-based Islamic investment bank, authorised by the Financial Services Authority (FSA) in January 2008. EFH offers products and services to a wide range of clients, and plays an important role in attracting investment from the Middle East into the UK and Europe. The bank also supports and advises UK and European entities looking to invest or trade in the Middle Eastern markets. Its four core business lines are Asset Management, Corporate Finance, Real Estate and Treasury.
Asian Finance Bank Berhad
Asian Finance Bank Berhad (AFB), a fully-fledged Islamic bank, was incorporated on 28 November 2005 and is backed by a consortium of shareholders from leading Middle Eastern financial institutions – QIB (70%), RUSD Investment Bank Inc of Saudi Arabia (20%) and Financial Assets Bahrain WLL (10%). AFB has a paid up capital of RM 355 million (USD 100 million) and an authorised capital of RM 1 billion. AFB offers a complete suite of Shari’a-compliant products covering consumer, corporate, commercial, treasury, investment banking and asset management. AFB has a branch in Kuala Lumpur in early 2007 and in Johor Port, Johor Bahru. AFB has also set-up a representative office in Jakarta, Indonesia. It is the second entry into the region, before moving on to other parts of Asia.
PT Bank Muamalat Indonesia TBK (BMI)
BMI, one of the three Shari'a-compliant banks registered with Bank Indonesia, offers an array of products and services to depositors and creditors as well as financing products. BMI commenced operations in 1992. The bank took off with the support of the Indonesian Association of Muslim Intellectuals and a group of Muslim entrepreneurs. The founding of BMI was associated with widespread support from the public. The major Shareholders of the bank are: The Islamic Development Bank (28.01%); Boubyan Bank Kuwait (21.8%); Atwill Holdings Ltd. (15.32 %); IDF Foundation (2.98%); and BMF Holdings (2.98%).