Macquarie Bank Joins Ranks of Financial Advisers in Labuan

Australian investment bank, Macquarie Bank Ltd, has joined the ranks of financial advisers in Labuan.

At the official launch of its Labuan branch in Kuala Lumpur, Macquarie Asia chairman Paul Ow said the bank's presence in the international offshore financial centre (IOFC) would enable it to better access the enormous Islamic funds available globally.
In addition, it would also give the bank, via the issuance of different Islamic financial instruments, an opportunity to interest investors in its array of assets.

The bank is listed on the Australian Stock Exchange and has total group assets in excess of US$16.1bil, with a further US$13.6bil in funds under administration and management.
Ow said through its infrastructure and specialised funds division, the group managed a portfolio of toll-roads, power, airports, communication networks and infrastructure assets globally.
Macquarie corporate and structured finance advisory division director Jamelah Jamaluddin said the investment bank would look at more syariah-driven financial instruments, which would be acceptable to all jurisdictions.

"We have existing products which could be developed along syariah principles,'' she said. Ow said the bank would consider the viability of listing Islamic instruments issued in future on the Labuan International Financial Exchange, but admitted the bank was still on a learning curve in respect of the products and exchange requirements.

The bank decided on Labuan, due to its good infrastructure, Jamelah said, but mainly because it was one of the lowest cost IOFCs.

Its Malaysian subsidiary, Macquarie (M) Sdn Bhd, set up five years ago, has been involved in infrastructure and project financing, structured financing, mergers and acquisitions, and cross border leasing transactions.

Over the last three years, it has participated in over 11 transactions worth RM12bil, some of which were Islamic instruments. Labuan Offshore Financial Services Authority director-general Datuk Noorazman Abdul Aziz said Macquarie Bank was one of 10 banks issued an operating licence this year, and the third bank to begin operations in Labuan.