by Yong Yen Nie
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KUALA LUMPUR: CIMB Islamic Bank Bhd plans to launch more structured products denominated in foreign currencies in Southeast Asia this year as part of its strategy to strengthen its regional footprint in Islamic banking.

Its chief executive officer Badlisyhah Abdul Ghani said: “We plan to launch more syariah-compliant structured products, especially in Singapore, Indonesia and Brunei, that are denominated in their currencies, respectively.

“It will be a significant move by CIMB Islamic, and we believe investors with an appetite for foreign currencies will buy (them).”

Its conventional banking arm launched its first rupiah-denominated structured product last year.

CIMB Islamic recently launched its first Negotiable Instrument of Deposit (NID) that would enable investors in Malaysia to benefit from both the bull and bear markets.

Currently, foreign investors can invest in the ringgit-denominated structured product, which would be made available in foreign currencies soon, Badlisyah said.

“Our strategy is to go out there with innovative products. The market already has many certified Islamic NID, but they are not structured products. It is a matter of continuing our efforts and making sure our innovations meet customers’ requirements,” he told The Edge Financial Daily.

He added that CIMB would expect other financial institutions to follow suit and provide Islamic structured products, due to the competitive environment it was operating in.

Analysts said CIMB Islamic would be able to strengthen its presence in Southeast Asian countries, especially Indonesia, following CIMB Group’s proposal to merge its 64%-owned PT Bank Niaga of Indonesia and Lippo Bank.