|
|
|
|
|
 |
|
|
|
Direct
access to top expatriate jobs in the Gulf with alJazeera Jobs
Quadruple your chance of landing your tax-free Gulf Job - Sign Up Now! |
|
Sukuk.me: Islamic bonds rally in third quarter |
|
|
|
|
DUBAI - Global issuance of sukuk, or Islamic bonds, staged a rally in the third quarter with the volume of issuance up 15% on the previous quarter in the latest sign that confidence is returning to capital markets.
Data from Zawya.com's Sukuk Monitor shows the value of global Islamic bonds in the third quarter rose to $6.2 billion, up 82% from $3.4 billion a year earlier.
Investors are putting more faith in the sukuk market, seen as a more stable platform to raise capital, as the financial crisis eases and global market conditions improve rapidly, bankers say.
"Debt issuance in general was very strong in the third quarter," said Abdulkader Hussein, chief executive of Mashreq Capital. "High quality issuers were still the focus and institutions like Petronas and IDB issued sukuks. The improving sentiment on Dubai and the Nakheel sukuk in particular also made investors feel more comfortable with the Islamic debt market."
Sentiment over the $3.5 billion sukuk due in December by Nakheel, a unit of government-owned Dubai World, has improved in recent weeks after Dubai's ruler and Prime Minister of the United Arab Emirates Sheik Mohammed bin Rashid Al Maktoum said the emirate can meet its debt obligations, estimated at as much as $80 billion.
Both conventional and Islamic deals were successfully placed, as investors became more comfortable with the economic environment and put cash and equity to work.
Total global sukuk issuance stood at $13.5 billion at the end of September, data from Zawya's Sukuk Monitor shows. That's close to the total global market for primary Islamic bonds in 2008, which raised $15.2 billion, according to Zawya.com.
Mukhtar Hussain, global chief executive officer of HSBC Amanah told Zawya Dow Jones in a recent interview that the volume of Islamic bonds issued globally this year could hit $15 billion as the financial crisis eases and global market conditions improve rapidly.
Sukuk comply with Islam's ban on interest and are backed by physical assets from which returns are derived and paid to bondholders instead.
European and Asian investors are increasingly buying into Middle East Islamic bonds in a bid to diversify their portfolios into a market showing greater signs of recovery, according to Mark Waters, BNP Paribas's head of debt capital markets in the Middle East.
In the third quarter, more than $1.8 billion worth of sukuk were sold by power and utilities companies worldwide followed by $1.5 billion from oil and gas.
Primary sukuk issued out of the Middle East and North Africa region accounted for 59% of total volume of global sukuk this quarter.
Saudi Arabia topped the list of countries of origin, enjoying 44% of the total volume, followed by Malaysia at 38% and Bahrain 8.5%, according to Zawya data..
Saudi Electricity Company sold in July $1.867 billion worth of Islamic bonds and Islamic Development Bank sold $850 million sukuk.
HSBC Bank Middle East was the top lead arranger, followed by Samba Capital.
Source: business.maktoob
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The content of this website does not constitute advice or a recommendation and should not be relied upon in making any decision relating to investments or any other matter. You should obtain professional advice before exercising any investment decisions or choices based on information featured in this website.
In no event shall Sukuk.me be liable for any damages whatsoever, including, without limitation, direct, special, indirect, consequential, or incidental damages, or damages for lost profits, loss of revenue, or loss of use, arising out of or related to the Sukuk.me website or the information contained in it.
Sukuk.me is a global provider of Sukuk information and Sukuk market data.
|
|
|
|
|
|
|
