Latest news with #Ijarah
Malaysian Reserve
26-05-2025
- Business
- Malaysian Reserve
Eversendai to sell Rawang factory
The structural steel specialist contractor plans to open a new factory in Johor to undertake its jobs in Singapore by HABHAJAN SINGH EVERSENDAI Corp Bhd's operations in Malaysia will be kept busy in the next few months as it plans to sell some assets — including its factory in Rawang, Selangor — and look for an alternate site in Johor, closer to its Singapore jobs. The structural steel specialist contractor is actively undertaking the moves to trim down significantly its debt by 2031. 'Going forward, I would say the long-term debt, it will be paid off within the next six years. 'We have assets which we will dispose of in the next two to three years. Also, with the kind of business we have in hand, we will be able to progressively bring debt down and pay it off by six years. That's the target,' Eversendai executive chairman Tan Sri AK Nathan Elumalay told The Malaysian Reserve (TMR). Its total group borrowings and debt securities for the financial year ended Dec 31, 2024 (FY24), stood at RM576.7 million, a significant reduction from RM1.05 billion as at the end of FY23. Its gearing level has been cited as a concern weighing on the minds of investors, causing some of them to shy away from the company which was listed on the Main Market of Bursa Malaysia in July 2011. The disposal of two parcels of freehold land in Sungai Buloh, announced in January 2025, raised RM63 million, which was used to reduce the group's borrowings. In an exchange filing, Eversendai said the group's Ijarah facility drawdown for its first lift boat, Vahana Aryan, was fully settled by Vahana Offshore (M) Sdn Bhd. The company also settled other term loans during the year, resulting in a 45.2% reduction of its total borrowings. The company was in the process of further restructuring its borrowings to strengthen its liquidity position, it added. We are in the process of setting up a factory in Johor. We could potentially achieve 100% utilisation capacity for Malaysia, says Nathan (pic: TMR) Nathan said the company next plans to dispose of its land in Kundang and its factory in Rawang, both located in Selangor. More than a decade ago, Eversendai expanded its Rawang plant facility to accommodate increasing operational needs from local projects. In an announcement in September 2013, the company said it planned to purchase land in Bandar Kundang, as the Rawang facility lacked sufficient space for the storing the company's tools and equipment. When asked why Eversendai plans to divest its Rawang factory, Nathan said it is currently underutilised, as most of the projects from Singapore are relatively small in scale. 'We are in the process of setting up a factory in Johor. It may not be as big as the Rawang facility, but it will be adequately sized to cater to Singapore projects. 'In that way, we could potentially achieve 100% utilisation capacity for Malaysia,' he said. When asked to provide more details about the land the company is seeking in Johor, he said it is expected be about eight to 10 acres (4.05ha). On May 20, Eversendai announced that it had secured a project for the construction of the New Science Centre in Singapore. The composite building comprises trusses, columns and beams from Level 2 to roof. The scope of work for this project includes engineering, connection design, shop drawings, steel material supply, fabrication, delivery and erection of structural steel works. The company conducts significant business in the Middle East, India and Singapore, in that order, with a smaller presence in Malaysia. For FY24, Eversendai saw its net profit drop 47% to RM14.1 million, on a turnover of RM1.24 billion, down 15% from the previous year. This marked its second year in the black after a tough spell during Covid-19. The company was in the red for FY20, FY21 and FY22. Eversendai operates seven steel fabrication facilities located in Malaysia, Singapore, Dubai, Sharjah, Ras Al Khaimah, Qatar and India, with an annual capacity exceeding 200,000 tonnes. It is from these steel fabrication facilities that the company has left an indelible mark on some of the world's most iconic landmark structures. These include the Burj Khalifa in Dubai, Petronas Tower 2 (Malaysia), Khalifa Olympic Stadium (Qatar), Kingdom Centre (Saudi Arabia) and Republic Plaza (Singapore). Eversendai shares closed at 54.5 sen on May 22, with a 52-week high/low of 77 sen/ 34 sen. This article first appeared in The Malaysian Reserve weekly print edition
Arab News
04-05-2025
- Business
- Arab News
Saudi Arabia opens May round of Sah savings sukuk with 4.66% return
RIYADH: Saudi Arabia launched the May issuance of its Sah savings sukuk, offering retail investors a fixed return of 4.66 percent as the government continues to push savings participation. The sukuk, part of the country's broader local bond program, is issued by the Ministry of Finance and managed by the National Debt Management Center. It is available for subscription from May 4 at 10:00 a.m. until May 6 at 3:00 p.m. local time, the NDMC said in a statement. As part of the Vision 2030 Financial Sector Development Program, the initiative aims to boost personal savings by encouraging regular fiscal habits, expanding product access, and promoting financial literacy to support future goal planning. The offering, denominated in riyals, also supports the goal of raising the national savings rate from 6 percent to 10 percent by the decade's end. The sukuk carries a one-year maturity and can be purchased in increments of SR1,000 ($266), with a cumulative cap of SR200,000 per individual across all program issuances. Allocation is scheduled for May 13, with redemption occurring between May 18 and 20. Payments will be disbursed on May 25. The Sah sukuk is accessible through digital platforms operated by SNB Capital, Al Rajhi Capital, and AlJazira Capital, as well as Alinma Investment and SAB Invest. The May issuance of the Sah savings product follows the fourth round issued in April, which offered a 4.88 percent return under the Ijarah sukuk structure. Available through the digital platforms of approved financial institutions, the bonds featured a one-year savings term with fixed returns payable at maturity. The minimum subscription was SR1,000, with a maximum cumulative limit of SR200,000 per user across all issuances during the program period. Sah is Saudi Arabia's first Shariah-compliant savings instrument for individuals. Structured under the Ijarah model — where returns are derived from leasing-based assets — the product is designed to offer a low-risk, fixed-income alternative with no fees and exemption from Zakat. Returns are paid upon maturity, with early redemptions allowed during set windows but without profit entitlement. NDMC CEO Hani Al-Madini said in March that Sah that the sukuk serves as a catalyst for private sector cooperation and participation in developing and launching various savings products tailored to diverse demographics. These initiatives could involve partnerships with banks, fund managers, financial technology companies, and more. In late February, the NDMC confirmed it would continue using the Ijarah format for future issuances to provide accessible, low-risk savings solutions.
Express Tribune
17-04-2025
- Business
- Express Tribune
PSX, Malaysia to boost Islamic finance
A delegation of Malaysian Shariah scholars and professionals visited the Pakistan Stock Exchange (PSX), where they emphasised their shared commitment to advancing Islamic finance and fostering cross-border collaboration between Shariah-compliant capital markets. A gong ceremony was held to welcome the foreign guests. Speaking on the occasion, PSX Chairperson Dr Shamshad Akhtar expressed hope for greater collaboration between the Islamic finance sectors of Malaysia and Pakistan, adding that Pakistan was also witnessing a growing demand for Shariah-compliant investment avenues. With over 50% of listed companies on the exchange being Shariah-compliant, the PSX offers a compelling platform for faith-based investments, including equities, Sukuk, Islamic mutual funds and exchange-traded funds (ETFs). Since launching its first Ijarah-based Sukuk in 2008, Pakistan has issued Ijarah Sukuk worth over Rs6.5 trillion by August 2024. The continued expansion of Islamic finance institutions, diversified asset classes and investor-friendly regulatory frameworks are contributing to the sector's momentum. Securities and Exchange Commission of Pakistan (SECP) Head of Islamic Finance Tariq Naseem provided an in-depth briefing to the delegation on the progress and advancements in Islamic finance within Pakistan's capital markets and non-bank financial sectors. He highlighted the significant accomplishments in regulatory reforms and the developments in the Islamic financial services industry to cater to both local and international market needs. The discussion also covered the potential for enhanced collaboration between Malaysia and Pakistan in promoting Islamic finance on a global platform. PSX Managing Director and CEO Farrukh H Sabzwari expressed his aspiration to benefit from Malaysia's expertise in Islamic finance for the advancement of Pakistan's capital market. He pointed out that only 0.14% of Pakistan's population constituted the investor base in the capital market, compared to 1% in Bangladesh, underscoring the significant potential for growth. He noted that the regulators had recently been working diligently to digitise market processes, thereby creating increased opportunities for investor participation. Sabzwari provided an overview of Pakistan's economy and the PSX operations, during which he revealed that approximately 80% of daily transactions at PSX were Shariah-compliant. Key stakeholders of the capital market – Badiuddin Akber, CEO of Central Depository Company, Imran Ahmed Khan, Deputy CEO of National Clearing Company and Farrukh Ansari, Chairman of Pakistan Mercantile Exchange – also addressed the gathering, highlighting the essential roles their institutions played in the overall ecosystem.
Arab News
06-04-2025
- Business
- Arab News
Saudi Arabia launches April round of Sah savings bonds with 4.88% return
JEDDAH: Saudi Arabia has launched the fourth round of its Sah savings product for 2025, offering a 4.88 percent return for April under the Ijarah sukuk structure. Issued by the Ministry of Finance and managed by the National Debt Management Center, Sah is the Kingdom's first savings bond designed for individuals. It operates under the Ijarah format, a Shariah-compliant structure similar to leasing, where investors earn returns in exchange for the right to use an asset. The offering, part of the local bond program and denominated in riyals, aligns with Saudi Vision 2030's goal of increasing the national savings rate from 6 percent to 10 percent by the end of the decade. In late February, the NDMC confirmed it would continue using the Ijarah format for future issuances to provide accessible, low-risk savings solutions. This initiative, a key component of the Financial Sector Development Program under Vision 2030, seeks to enhance personal savings by fostering regular financial habits, expanding product availability, and promoting financial literacy to support future goal planning. The latest issuance opened at 10:00 a.m. Saudi time on April 6 and will close at 3:00 p.m. on April 8. The allocation date is set for April 15, with the redemption period running from April 20 to 22, and redemption payments scheduled for April 30, according to the center. The bonds, accessible via digital platforms of approved financial institutions, offer a one-year savings period with fixed returns upon maturity. The minimum subscription is SR1,000 ($266), with a maximum limit of SR200,000 per user across all issuances during the program period. The product is fee-free and offers low-risk returns. Eligible Saudi nationals aged 18 and above can subscribe through Aljazira Capital, Alinma Investment, SAB Invest, Al-Rajhi Capital, and SNB Capital. Under the same sukuk structure, the March round of this year's program offered a 4.98 percent return and raised SR2.64 billion through sukuk issuances. According to the NDMC, the March issuance was divided into four tranches. The first tranche, valued at SR364 million, will mature in 2027. The second, worth SR316 million, is set to mature in 2029, while the third, amounting to SR1.46 billion, will mature in 2032. The fourth and final tranche, worth SR500 million, will mature in 2039. The Kingdom's debt market has experienced substantial growth in recent years, drawing strong investor appeal amid a global environment of rising interest rates. A March report by Kuwait Financial Center, known as Markaz, revealed that Saudi Arabia led the Gulf Cooperation Council in primary bond and sukuk issuances during 2024, raising $79.5 billion across 79 issuances.
Arab News
02-03-2025
- Business
- Arab News
Saudi Arabia launches March ‘Sah' savings with 4.98% return
JEDDAH: Saudi Arabia has launched the third round of its Sah savings product for 2025, offering a 4.98 percent return for March under the Ijarah sukuk structure. Issued by the Ministry of Finance and managed by the National Debt Management Center, Sah is the Kingdom's first savings bond designed for individuals. It operates under the Ijarah format, a Shariah-compliant structure akin to leasing, where investors receive returns in exchange for the right to use an asset. The offering, part of the local bond program and denominated in riyals, aligns with Saudi Vision 2030's goal of increasing the national savings rate from 6 percent to 10 percent by the end of the decade. The NDMC said the format will be retained for future issuances as part of ongoing efforts to offer accessible, low-risk savings solutions. The latest issuance opened at 10:00 a.m. Saudi time on March 2 and will close at 3:00 p.m. on March 4. Redemptions are expected within a year, according to an NDMC post on X. The bonds, available through digital platforms of approved financial institutions, feature a one-year savings period with fixed returns paid at maturity. The minimum subscription is SR1,000 ($266), while the maximum is SR200,000 per user across all issuances during the program period. The product is fee-free and offers low-risk returns. Eligible Saudi nationals aged 18 and older can subscribe through Aljazira Capital, Alinma Investment, and SAB Invest, as well as Al-Rajhi Capital and SNB Capital. In January, the NDMC announced the closure of the year's first issuance, allocating SR3.724 billion across four tranches. The first tranche, valued at SR1.255 billion, matures in 2029, while the second, worth SR1.405 billion, matures in 2032. The third totaled SR1.036 billion with a 2036 maturity, and the fourth, at SR28 million, matures in 2039. The previous issuance, which closed on Feb. 4, offered a 4.94 percent return, while the first 2025 issuance concluded on Jan. 7 with a 4.95 percent return. Future rates will depend on market conditions.
