Published on 13 Nov 2018.
RAM Ratings observed that as at end-September 2018, Malaysia’s sukuk issuance had surpassed RAM Ratings’ projection of RM100 billion–RM120 billion for the year. In 3Q 2018, a total of RM24.9 billion sukuk was issued, bringing the YTD issuance value to RM123.9 billion as at end-September. The growth was led by increased issuance by the Government (+17.0% or RM46.5 billion) despite a 41.8% decline for the corporate sector. The Malaysian sukuk market expanded 11.1% y-o-y to RM827.8 billion as at end-September 2018 (end-September 2017: RM745.2 billion). At the same time, the proportion of outstanding sukuk relative to the overall domestic bond market remained robust at 59.8%.
The latest issue of RAM’s Sukuk Snapshot reports that total global sukuk issuance shrank 12.2% y-o-y to USD66.8 billion as at end-September 2018, from USD76.1 billion a year earlier. That said, Malaysia maintained its dominance with a 35% share of global sukuk issuance, followed by Saudi Arabia (26.5%). Ringgit-denominated sukuk maintained its leadership with a 32.2% share of the global sukuk market. RAM expects the growth of global sukuk issuance to stay muted in 2018, potentially falling below our projection of USD75.0 billion-USD85.0 billion for the year.
The Sukuk Snapshot is designed as a quick reference point for sukuk data and trends. The publication aims to serve the needs of market practitioners, enabling them to monitor global and Malaysian sukuk market developments. Subscribers can retrieve the Snapshot via our website, www.ram.com.my. Non-subscribers may purchase the report at RM500 per copy.
Irfan Afifah Mohd Zaki
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AIN Sulaiman/Faiez Zulkifli
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