KUALA LUMPUR, March 5 (Bernama) — CIMB Islamic Bank Berhad (“CIMB Islamic”) and PETRONAS today signed an inaugural Tahawwut Master Agreement (“TMA”) for Shariah Compliant Commodity Derivatives. The signing of the TMA marks PETRONAS’ venture towards Shariah-compliant derivatives, making PETRONAS the first corporation in Malaysia to utilise CIMB Islamic’s Shariah-compliant commodity hedging instruments for Islamic Energy Commodity Derivative trades.
The TMA is a multiproduct framework agreement drafted by International Swaps Derivatives Association (“ISDA”) in collaboration with International Islamic Financial Market (“IIFM”) Association to govern Shariah-compliant derivative transactions. The TMA provides the market with globally accepted and standardised terms for Islamic hedging products, which will spur the growth of Islamic hedging products in the international market.