Published on 05 Aug 2019.
As at end-June 2019, Malaysia’s sukuk issuance had surpassed RAM Ratings’ projection of RM100 bil–RM120 bil for the full year. A total of RM72.8 bil sukuk was issued in 2Q 2019, bringing the YTD issuance value to RM136.9 bil. Issuance by Bank Negara Malaysia (BNM) charted the most impressive growth of 61.1% to RM14.5 bil in 1H 2019, followed by the corporate sector RM65.1 bil (+55.5%, including a RM27.6 bil one-off issuance by Urusharta Jamaah Sdn Bhd) and the government segment (+9.9% to RM39.0 bil). Outstanding Malaysian sukuk had expanded 12.2% y-o-y to RM918.4 bil as at end-June 2019.
The latest issue of Sukuk Snapshot reports that total global sukuk issuance has already exceeded the lower end of RAM’s full-year projection of USD70.0 bil-USD80.0 bil, having climbed up to USD72.7 bil as at end-June 2019 (end-June 2018: USD48.9 bil). This is attributable to increased issuance in several markets. Malaysia achieved the strongest growth, with its issuance value spiking up from USD18.8 bil to USD28.4 bil over the same span. Next came Turkey (from USD687.3 mil to USD6.3 bil), as its sovereign and participation banks shored up their liquidity bases to support the country’s weakened economy. Kuwait took third place with USD3.9 bil, of which 92.2% was under the auspices of the Central Bank of Kuwait, to facilitate the management of Islamic banks’ liquidity.
RAM’s Sukuk Snapshot is designed as a quick reference point for sukuk data and trends. This publication aims to serve the needs of market practitioners, enabling them to monitor global and Malaysian sukuk market developments. Subscribers can retrieve the Sukuk 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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