New Shari'ah compliant products in the pipeline From IB Asia

By: John Foster

Vince Cook, chief executive of the Islamic Bank of Asia speaking at the bank's annual general meeting in Bahrain announced $200 million deals in the first quarter of 2008. This figure was part of the $500 million cross-border transactions the bank made in its first year of its operation.

Cook also announced that the bank was working with three Singapore-based clients on future Sukuk issues, but was not rushing these issues to market. He said: "The announcement by the monetary authority of Singapore to issue sovereign Sukuk will really help with the development of an Islamic capital market in Singapore. These government Sukuk will have a high sovereign rating and will spur an interest in the Singapore market and in turn help us raise capital for Singapore based corporations through the Islamic capital markets."

He also emphasised the importance of innovation in the Islamic banking industry and the need to develop agile and clever products to help the industry grow. He said: "The next phase for us is to launch more complex treasury products, including a proprietary and efficient profit rate swap structure, FX forwards, cross currency ideas and structured products. These structured products will position IB Asia as one of the few standalone Islamic banks able to provide the type of investment solutions coming from international investment banks."

Islamic Bank of Asia enters the Harbour

MANAMA: Bahrain Financial Harbour Holding Company (BFHHC) has signed an agreement with the Islamic Bank of Asia (IB Asia), to take over the 45th floor of the West Tower.

IB Asia, Singapore's first Islamic bank, was formed as a joint venture with participation from GCC investors.

"It is not surprising that the bank chose Bahrain Financial Harbour to launch its operations in the Middle East," said BFHHC senior manager leasing, sales and marketing, Salwan Uchi.

"In addition to the advantages that BFH's highly focused, committed and advanced financial environment offers, the new bank will also enjoy easy access to investment opportunities in the GCC and Asia because of Bahrain's strategic location at the international crossroads.

"Additionally, IB Asia will also benefit from its close proximity to major Islamic banking institutions and the kingdom's position of prominence in the Islamic Finance where it accounts for over 17 per cent of the market. We are delighted that IB Asia and its promoters have chosen BFH over other international financial centres," he added.

The Islamic Bank of Asia was launched on May 7 last year by DBS, the largest bank in southeast Asia, and GCC based investors.

The bank's operations are supervised by a four-member team of Islamic scholars. Through its Sharia-compliant product offerings, it aims to facilitate access to investment opportunities in Asia and the Middle East.

"The right location is of extreme significance to IB Asia and we are glad that we chose BFH, which is a financial sector focused, technologically advanced and fully integrated master planned development, as our entry point into the buoyant GCC capital market," said IB Asia's senior vice-president, corporate banking and chief Middle East representative, Ala' Abu Mughli.

"With all the benefits that the BFH address offers, we feel confident that we will get off to a good start. IB Asia is well set to achieve its goal of becoming one of the largest and most innovative Islamic banks in the world. "