There is little to choose between the two Malaysian Islamic banking leaders, CIMB Islamic and AmMerchant, but CIMB comes out on top for the second year running because of the breadth and volume of its Islamic finance activities. CIMB Islamic is a bank within a bank and is responsible for CIMB Group’s Islamic finance business onshore and off. CIMB Islamic’s focus is on Islamic debt and equity capital markets, private equity, private banking, asset and fund management, and corporate finance. The bank’s head, Badlisyah Abdul Ghani, says the key to its success is the quality of its staff.
The bank has been busy on the sukuk front over the past year. In 2005, it acted as lead arranger for Konsortium Lebuhraya Utara-Timor Sdn Bhd’s (Kesturi) R$780 million ($206 million) redeemable secured serial sukuk istisna; joint lead arranger for Syarikat Bekalen Air Selangor Sdn Bhd’s R$3 billion BBA MTN programme; and was joint lead advisor, joint lead arranger and joint bond coordinator for Cagamas MBS Berhad’s R$2.05 billion IRMBS sukuk musharakah (see Islamic finance deal of the year).
Other notable deals involved acting as joint lead manager for the Islamic Development Bank’s $500 million sukuk MTN programme; joint lead arranger and joint lead manager for the IBRD’s R$760 million BaIDS (the World Bank’s first foray into Islamic securities); and lead arranger and lead manager for One Capital Berhad’s R$2.5 billion sukuk Musharaka (the world’s first rated Islamic ABS based on the principles of Musharaka).
Sukuk is undoubtedly a major strength for CIMB Islamic, and Badlisyah notes that the bank’s impressive work means it is top of the domestic and international sukuk league tables. In terms of geography, while acknowledging that Malaysia is the bank’s main focus, he says that 2006 will see CIMB Islamic expand regionally – both through its own branches and through sister companies – in Indonesia, Brunei and Singapore. He also expects the bank to do more business in the Middle East in the coming year.
