Published on 24 Dec 2019.
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.
Irfan Afifah Mohd Zaki
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AIN Sulaiman/Faiez Zulkifli
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