AFB to tie up with local, foreign Islamic banks

Friday September 26, 2008

It wants to be lead adviser for corporate financing

KUALA LUMPUR: Asian Finance Bank Bhd (AFB) has ambitious expansion plans, especially in Islamic banking, despite its small capital base.

AFB has a paid-up capital of RM355mil and an authorised capital of RM1bil.

“We believe that the way for us to grow and expand is by forging strategic collaborations with the Islamic investment banking fraternity in Malaysia and abroad,” chief executive officer Datuk Mohamed Azahari Kamil told StarBiz in an interview.

“Through this, we can syndicate financing and become lead adviser for corporate financing activities."

Building strategic partnerships and an ability to offer innovative products that focus on customer needs would be important foundations for the bank’s success, he said.

Azahari said ADB would leverage on the vast Islamic banking experience of its Middle Eastern shareholders comprising Qatar Islamic Bank (QIB) as well as associates RUSD Investment Bank Inc and Global Investment House.

QIB, a leading Islamic bank in Qatar, has expertise in financing syariah-compliant public and private sector projects.

RUSD Investment Bank is a member of the RUSD Group based in Jeddah, Saudi Arabia. It is part of the RUSD Group that owns a number of Islamic insurance and finance companies and also provides financial planning products and services for a global clientele.

Azahari said moving into niche markets, particularly when servicing institutional investors, would be another key area for the bank, both domestically and abroad.

This was because AFB could act as a bridge for local companies to venture into the Gulf Cooperation Council (GCC) countries and vice-versa, he added.

He said the bank had identified about five Malaysian companies involved in oil and gas, power generation and infrastructure activities in the GCC countries for which it could provide funding and advice.

AFB recently opened a second branch in Johor Port, Johore Baru, and was looking at setting up two more - one each in the north and east of the peninsula.

It was also looking to set up a wealth management division to meet the growing needs of high net worth individuals.

On the international front, Azahari said apart from Indonesia, the bank was also eyeing Brunei.

“Once we have proven our success in Indonesia, we will look into Brunei by setting up a representative office there,’’ he said.


http://biz.thestar.com.my/news/story.asp?file=/2008/9/26/business/2100954&sec=business