Sukuk issuance costs still above conventional bonds in Asia


DUBAI: Costs of issuing Islamic bonds in Asia are still significantly higher than the costs of issuing conventional bonds, despite the growth of Islamic finance in countries such as Malaysia and Indonesia, a study by the Asian Development Bank found.

In Indonesia, profit rates for sukuk issued by the government are on average 86 basis points higher than comparable conventional government bonds, the Manila-based lender said.

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Business , Business , ADB , bonds , Islamic finance

   

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