2012 sukuk issuances to reach $130b

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This year sukuk issuances will reach new record heights, with Malaysia, Qatar and Turkey being the most active issuers of Islamic finance bonds, a new study by Kuala Lumpur-based KFH Research says.

Total sukuk issuance in the first ten months of 2012 reached $112 billion, according to KFH Research, up 59.4 per cent over the same period in 2011, and has already exceeded the full year 2011 issuance by 31.5 per cent. Total sukuk issuance for 2012 is expected to reach $130 billion.

Malaysia, Qatar and Turkey ranked first in issuance. The three biggest deals occurred in the Middle East: a Turkish sukuk issuance in Turkish lira and a sukuk for Qatar Islamic Bank, and a sukuk for the Islamic Development Bank in Jeddah in US dollars. Murabaha sukuks ranked first, while the demand for covering the issued sukuks reached over five times the requested sum.

Most of the sukuks, 66.7 per cent, were issued by governments or sovereign bodies, followed by government-related entities and corporates at 8.5 per cent and 24.8 per cent, respectively.

Malaysia topped the primary sukuk market with total issuances of $5.8 billion or 65.3 per cent market share in October 2012. This was followed by Qatar at $1.5 billion or 16.4 per cent market share and Turkey at $905 million or 10.3 per cent market share.

The global Sukuk pipelines could potentially reach $17 billion for the months of November and December 2012 combined, pushing up 2012 full year global sukuk issuances above $130 billion, KFH Research said. As at end-October 2012, the value of global sukuk outstanding was at $225.5 billion, up from $178.2 billion as of end-2011.

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Reading Time: 1 minute

This year sukuk issuances will reach new record heights, with Malaysia, Qatar and Turkey being the most active issuers of Islamic finance bonds, a new study by Kuala Lumpur-based KFH Research says.

Reading Time: 1 minute

This year sukuk issuances will reach new record heights, with Malaysia, Qatar and Turkey being the most active issuers of Islamic finance bonds, a new study by Kuala Lumpur-based KFH Research says.

Total sukuk issuance in the first ten months of 2012 reached $112 billion, according to KFH Research, up 59.4 per cent over the same period in 2011, and has already exceeded the full year 2011 issuance by 31.5 per cent. Total sukuk issuance for 2012 is expected to reach $130 billion.

Malaysia, Qatar and Turkey ranked first in issuance. The three biggest deals occurred in the Middle East: a Turkish sukuk issuance in Turkish lira and a sukuk for Qatar Islamic Bank, and a sukuk for the Islamic Development Bank in Jeddah in US dollars. Murabaha sukuks ranked first, while the demand for covering the issued sukuks reached over five times the requested sum.

Most of the sukuks, 66.7 per cent, were issued by governments or sovereign bodies, followed by government-related entities and corporates at 8.5 per cent and 24.8 per cent, respectively.

Malaysia topped the primary sukuk market with total issuances of $5.8 billion or 65.3 per cent market share in October 2012. This was followed by Qatar at $1.5 billion or 16.4 per cent market share and Turkey at $905 million or 10.3 per cent market share.

The global Sukuk pipelines could potentially reach $17 billion for the months of November and December 2012 combined, pushing up 2012 full year global sukuk issuances above $130 billion, KFH Research said. As at end-October 2012, the value of global sukuk outstanding was at $225.5 billion, up from $178.2 billion as of end-2011.

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