Deutsche Bank has received an international Islamic banking licence in Malaysia, allowing it to more easily provide Islamic commercial and investment banking services denominated in foreign currencies to institutional clients throughout Asia. The licence was given by the central bank, Bank Negara Malaysia.
Deutsche Bank's international Islamic banking Malaysia branch will provide a range of products, from simple flow requirements to more tailored structures that fit the individual needs of the bank's corporate and institutional clients.
Raymond Yeoh, chief country officer for Deutsche Bank (Malaysia), says the new licence gives clients in Asia better access to the bank's global Islamic banking platform. "Deutsche Bank has a proven track record of innovation in wholesale Islamic finance," he said. "Our Islamic banking licence will make this innovation more easily available to our clients in Asia while contributing to Malaysia's position as an international Islamic finance centre."
"Making our conventional product platform available to clients in a Shari'ah-compliant format
greatly increases our competitive position, while contributing to the market's broader
development," said Jamzidi Khalid, CEO of Deutsche Bank international Islamic banking and head of Islamic structuring for Asia ex-Japan, "This is particularly true of the Islamic bond market, where we hope to leverage our position as the number one arranger of conventional international bonds in Asia".
Asia accounted for more than half of all Islamic bond (sukuk) issuance in 2009, or $11.74 billion versus the global total of $20.41 billion. Deutsche Bank is currently ranked number one for both international Islamic bond issuance and Asian international bond issuance for 2010, according to Bloomberg.
In 2008, the bank jointly closed Asia's first-ever concurrent exchangeable sukuk and equity placement, with a $1.4 billion deal for Parkson Retail Group. This followed an $850 million sukuk offering in July 2007 that was exchangeable into Plus Expressways.