Sukuk issuance set to climb 6% to around $130bn in 2019

DOHA:  Sukuk (Islamic bond) issuance is set to rise 6 percent to around $130bn this year, a fourth consecutive annual increase, Moody’s Investors Service said in a report.

Increased activity in the GCC and Malaysia helped drive strong issuance of $87bn in the first six months and this has reduced funding needs” said Nitish Bhojnagarwala, VP-Sr Credit Officer at Moody’s. “We therefore expect second-half volumes to moderate to around $43bn, though Malaysia and Gulf Cooperation Council countries will continue issuing regularly.”

Governments across the core Islamic finance markets (Malaysia, Indonesia and GCC countries) continue to adjust their funding mix, supporting long-term growth in sukuk volumes. The change reflects these countries’ cultural affinity with Islamic finance, and their governments’ desire to promote Shariah-compliant banking. Rising demand for sukuk from domestic Islamic banks, and central bank issuance in the core Islamic finance markets, are also supportive.

Source from: The Peninsula