YTD Global Sukuk Issuance Exceeds 2016 Projection - RAM Ratings

KUALA LUMPUR, Dec 6 (Bernama) -- RAM Rating Services Bhd said global sukuk issuance as of end-November 2016 totalled US$72 billion, surpassing its earlier projection of US$55 billion to US$65 billion for the year. In a statement Monday, RAM said Malaysia retained its top spot with a 41.7 per cent market share, followed by Indonesia (16.4 per cent), the United Arab Emirates (UAE; 11.0 per cent), Turkey (7.1 per cent) and Pakistan (6.7 per cent). The ratings agency noted that the corporate sector posted a 35.5 per cent year-on-year jump in global sukuk issuance to US$30.6 billion as of end-September this year versus US$22.6 billion in the same period last year. The top three issuers were originated from Malaysia, the UAE and Qatar, namely the Public Sector Home Financing Board (US$0.96 billion), Emaar Sukuk Ltd (US$0.75 billion) and the State of Qatar (US$0.72 billion), respectively. A total of US$5.9 billion of global sukuk was issued in September, bringing the year-to-date (YTD) issuance to US$58.9 billion for the month. RAM also highlighted that a total of RM9.6 billion of domestic sukuk was issued in September, leading to a YTD issuance value of RM99.5 billion. (US$1 = RM4.44) "True to tradition, local-currency sukuk issues were dominated by the financial services and infrastructure and utilities sectors," it said. RAM Head of Islamic Finance, Ruslena Ramli, said large issuances from the financial and infrastructure sectors had been a boon to the sukuk market, and were likely to remain a key catalyst of future growth. "As of end-November this year, the issuance value of domestic Islamic debt securities stood at RM125.3 billion, exceeding RAM's full-year projection of RM100 billion to RM120 billion," she said. -- BERNAMA