KUALA LUMPUR: RAM Ratings has revised its global sukuk issuance projection for this year to US$80 billion-US$90 billion (RM331.56 billion-RM373 billion) from US$70 billion-US$90 billion (RM290.12 billion-RM331.56 billion) previously.
It said in a statement today that the upward revision is based on Bank Negara Malaysia’s (BNM) better-than-expected issuance of Islamic securities, the Indonesian government’s commitment and support for the Islamic finance agenda and its role in raising awareness for sustainable and responsible investments (SRI).
As at end of June, global sukuk issuance stood at US$72.7 billion, exceeding the lower range of RAM’s initial projection.
RAM said the new projection was also driven by expectations of the Gulf Cooperation Council’s public sector sukuk issuance providing a sustainable baseline and potentially accounting for a higher proportion of its funding mix.
“Going into the second half of the year, RAM expects Malaysia to retain its pole position as the sukuk market leader in 2019, underpinned by solid support from the government, BNM and the private sector,” said the rating agency.
As at end-June 2019, the gross issuance value of the Malaysian sukuk market had surpassed RAM’s projection of RM100 billion to RM120 billion for the entire year.
Malaysia’s sukuk issuance as at end-June amounted to RM136.9 billion, an increase of 38.3% from RM99 billion recorded in the corresponding period in the previous year.
This was primarily driven by a 61.1% spike in BNM’s issuance of Islamic securities to RM14.5 billion, followed by the corporate sector with RM65.1 billion (+55.5%) and government issues of RM39 billion (+9.9%).
source https://www.thesundaily.my/business/ram-revises-up-global-sukuk-issuance-forecast-XB1201437
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