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SINGAPORE: The real estate company Royal Group has raised $ 300 million in sharia-compliant financing from the RHB Bank of Singapore, helping to expand the range of Islamic financial transactions in the main financial center of the country. South East Asia. the last decade, with the country issued its first Islamic bond in 2009, aimed at attracting religious investors from the Gulf and Southeast Asia.
The operation is one of the largest Islamic financial transactions In this case, the SO Sofitel Singapore Hotel, said Nazmi Camalxaman, Head of Islamic Banking at RHB Bank of Singapore , a unit of Rhine bank RHB Bank Berhad
"We believe this agreement will encourage other hotel owners in Singapore and elsewhere to Islamic finance for their acquisition or refinancing needs.
The bank will remain aggressive in the hospitality sector from a financial point of view and will have a good pipeline According to Camalxaman, the size of Islamic finance assets in Singapore is estimated at about $ 2 billion, while Islamic deposits amount to about $ 3 billion, added Mr. Camalxaman
The transaction used a structure known as mura baha of merchandise, where an institution agrees to buy a commodity or asset from a counterparty who promises to redeem it with an agreed margin at a later date. the first Islamic financing for the Royal Group, which develops and manages real estate mainly in Malaysia and Singapore, while the company sought to diversify its financing options.
Islamic finance is little used in the hospitality sector. limit exposure to companies related to alcohol.
Previously, hotels were deemed Shari'a compliant if alcohol sales did not exceed more than 20 percent of total revenue. e, limiting the ability of these properties to access Islamic sources of finance.
But Malaysian researchers changed this in 2016, when the Sharia Board of the Securities Commission of Malaysia decided to abandon this requirement. provide accommodation.
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