Fed clouds 2017 global sukuk sales outlook for top arranger

KUALA LUMPUR: Worldwide sales of Islamic bonds will drop in 2017 after rebounding from a five-year low, as higher US interest rates and weaker growth prospects in key markets crimp offerings, according to the debt’s top arranger.

Issuance will fall to between US$35bil and US$40bil, with the bulk being used to refinance debt and fund infrastructure projects, according to CIMB Islamic Bank Bhd, which topped Bloomberg’s sukuk league table in eight of the past 10 years.