TheStar
KUALA LUMPUR: Asian Finance Bank Bhd (AFB) and AmanahRaya Investment Bank Ltd, Labuan (ARIBL) has launched the first syariah-compliant shipping fund in Malaysia worth RM1bil.
ARIBL chairman Tan Sri Arshad Ayub said the fund would seek to provide stable returns through the acquisitions of high quality vessels under charter arrangements of seven to 10 years with established and credit-worthy charterers.
“AFB and ARIBL will jointly manage the fund,” he told reporters at the launch of the Safeena Islamic Fund in conjunction with the release of Amanah Raya Bhd Annual Report 2007 yesterday.
ARIBL managing director Datuk Mohamed Azahari Kamil said the shipping fund was a 10-year closed-end fund constituted via Safeena (L) Ltd, domiciled in Labuan.
“It will be offered via private placement and is intended to provide investors a chance to invest in a new class of syariah-compliant products,” he said. He added that investors were likely to come from the Middle East and Malaysia.
On the returns on investment, Azahari said the fund was expected to yield an annual dividend of up to 10%.
The first vessel could be acquired within a couple of months, he said, adding: “We are now looking at a few vessels.”
He also said there was a possibility that the fund size would need to be increased in time.
AFB acting chief executive officer Daud Vicary Abdullah said the fund gave investors the opportunity to enter the shipping, marine infrastructure and support services sectors.
“Our focus will be on offshore vessels, bulk carriers and tankers that have firm employment serving the oil and gas, dry bulk, chemical and commodity markets dealing with coal, iron ore and palm oil,” he said.
He added that the funds could be used to acquire new or second-hand vessels that met the investment criteria.
Safeena (L) Ltd chairman Datuk Abdul Latif Abdullah said charter rates for vessels, especially for dry bulk, were expected to remain high till at least 2011.
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