Cagamas Sukuk `Big Step' for Malaysian Middle East Sales: Islamic Finance - Bloomberg

Duet Mena Ltd. and Algebra Capital Ltd., Dubai-based managers of $500 million, said they may buy Islamic bonds from Malaysia’s Cagamas Bhd., the first under a new structure that complies with the Persian Gulf’s stricter religious laws.

Cagamas, the nation’s biggest mortgage holder, plans to seek funds in the oil-rich region by offering 5 billion ringgit ($1.5 billion) of notes that meet the guidelines of the Bahrain- based Accounting & Auditing Organization for Islamic Financial Institutions. Fatwas, the judgment of a scholar based on his interpretation of Shariah law, from Malaysia aren’t generally accepted in the Middle East.

Demand from Dubai investors would benefit borrowers in Malaysia, the largest Asian sukuk market. Saturna Sdn., the Malaysian investment fund whose Washington-based parent oversees $3 billion of Islamic assets, said it is counting on the sale to attract funds from the Middle East.