Global sukuk issuance at US$22.2 billion in 1Q

KUALA LUMPUR: Global sukuk issuance reached US$22.2 billion, as at end- March, a marginal decrease from US$24.1 billion recorded in the same period last year, with Malaysia maintaining its leadership by accounting for 38.5 per cent of the total issuance, says RAM Ratings.

In a statement, the ratings agency said Indonesia was next (24.7 per cent) followed by Qatar (9.9 per cent) and the United Arab Emirates (nine per cent).

It said outstanding global sukuk summed up to US$346.7 billion, as at end-March 2017, with Malaysia maintaining its leadership by commanding 48 per cent of the amount.

Ram Ratings said during the first quarter this year, sovereign issuance boosted the global sukuk market, with the bulk of the sovereign issuance stemming Indonesia (43.4 per cent), Qatar (17.6 per cent), Malaysia (15.4 per cent) and Hong Kong (eight per cent).

Head of Islamic Finance Ruslena Ramli said Bahrain and Qatar remained committed to continuously tap the sukuk market.

“With the return of Saudi Arabia and the issuance of its US$9 billion sukuk on April 13 (its first US dollar-denominated sukuk), we envisage other Gulf Cooperation Council nations would also consider to include sukuk issuance as a debt management strategy,” she added.

On the domestic front, outstanding Malaysian sukuk expanded 11.5 per cent,year-onyear,to RM691.4 billion, as at endMarch 2017,from RM620.1 billion recorded in the same period last year. — Bernama