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Global sukuk issuance in 9M 2019 exceeded RAM Ratings’ full-year projection

Published on 24 Dec 2019.

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RAM Ratings notes that the USD92.7 bil of global sukuk issuance in 9M 2019 has already exceeded our projection of USD80 bil–USD90 bil for the entire year. Malaysia retained its top spot with a 38.1% market share, followed by Saudi Arabia (19.2%), Indonesia (17.7%), the UAE (7.0%) and Turkey (6.5%). As at end-September 2019, the value of outstanding global sukuk had spiked up to USD489.3 bil (end-September 2018: USD387.7 bil).

The latest issue of RAM’s Sukuk Snapshot reports that Malaysia recorded RM185.5 bil (+49.7% y-o-y) of sukuk issuance as at end-September 2019 - surpassing our full-year sukuk projection of RM100 bil–RM120 bil for the local-currency market. The growth was led by a 60.2% surge in issuance by the corporate sector (including quasi-government) to RM83.9 bil, including a RM27.6 bil one-off issue by Urusharta Jamaah Sdn Bhd. At the same time, sukuk issuance by the government sector was lifted 1.9% to RM52.5 bil. Notably, the value of outstanding sukuk had increased to RM921.1 bil y-o-y as at the same date (9M 2018: RM827.8 bil), accounting for 61.5% of the overall Malaysian market’s outstanding debt securities.

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. 

 

Analytical contact
Irfan Afifah Mohd Zaki
(603) 3385 2551
irfan@ram.com.my

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The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.

RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.

Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.

Published by RAM Rating Services Berhad
© Copyright 2019 by RAM Rating Services Berhad



Publication Date Published Category
Sukuk Snapshot December 2019 24-Dec-2019 Sukuk Snapshot View PDF

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