Bank Islam signs first Islamic rate swap deal

News

Bank Islam Malaysia has completed the world's first Islamic profit rate swap, a three-year, 136 million ringgit ($36 million) deal with Standard Chartered Malaysia.

The deal is the Islamic equivalent of an interest rate swap and is called a wiqa (value-protection) forward rate agreement. Bank Islam will swap a fixed profit rate payment, due every six months, with a rate payment from Standard Chartered linked to the Kuala Lumpur interbank offer rate. The underlying notional is commodities list

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