RAM: Q1 global sukuk issuance at US$22.2bil


  • Banking
  • Wednesday, 03 May 2017

This is the second consecutive year that RAM Ratings has been honoured as Rating Agency of the Year, Malaysia by The Asset.

KUALA LUMPUR: Global sukuk issuance reached US$22.2 billion (US$1=RM4.33), as at end-March, a marginal decrease from US$24.1bil recorded in the same period last year, with Malaysia maintaining its leadership by accounting for 38.5% of the total issuance, says RAM Ratings.

In a statement, the ratings agency said Indonesia was next (24.7%) followed by Qatar (9.9%) and the United Arab Emirates (9%).

RAM Ratings said outstanding global sukuk summed up to US$346.7bil, as at end-March 2017, with Malaysia maintaining its leadership by commanding 48% of the amount.

It 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%), Qatar (17.6%), Malaysia (15.4%) and Hong Kong (8%).

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$9bil sukuk on April 13 (its first US$-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%,year-on-year,to RM691.4bil, as at end-March 2017, from RM620.1bil recorded in the same period last year.

It said RM18.3bil in domestic sukuk was issued in March, bringing year-to-date issuance value to RM37.6bil in the first quarter of this year, with the financial services sector the main driver of the domestic sukuk market. – Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Business , sukuk , RAM , rating , global ,

   

Next In Business News

Tax cuts will boost economy, provide multiplier impact: Tengku Zafrul
Budget 2023: Govt to enhance green tech financing scheme
OGSE players to benefit from RM1bil maritime and logistics fund
MNOs execute share subscription agreements with DNB
Govt extends tax breaks on listing expenses to tech companies on Bursa Malaysia
ASB, ASB 2 investment limit increased to RM300,000
Govt allocates RM92mil towards developing halal industry
EPF's investment income falls 21% to RM27bil in 1H22
Budget 2023: Reactions from the financial sector
SemarakNiaga initiative receives RM45bil to spur business activity

Others Also Read