KUALA LUMPUR, Nov 20 (Bernama) -- Malaysia has offered Indian issuers to take up cost-effective financing through sukuk issuances in Malaysia.
In making the offer, Securities Commission chairman Datuk Zarinah Anwar said there were opportunities for Indian issuers to have access financing through sukuk issuances and for Indian intermediaries wishing to build an origination and distribution presence in the fast-growing world sukuk market.
"The sukuk or Islamic bond market now features prominently in Malaysia's value proposition as a leading international Islamic financial centre.
"More than 60 percent of global sukuk outstanding originates from Malaysia. Sukuk issuances comprise 55 percent of total corporate bonds issued in Malaysia," she said in her keynote address at the India-Malaysia Capital Market Forum in Mumbai Thursday. The text of her speech was released to Bernama.
Zarinah said it was also worth mentioning that many issuers and investors in Malaysias Islamic capital market were non-Muslims and their increasing participation in the Islamic market marked a recognition of the strong demand for Islamic products worldwide, particularly from financial institutions and investment funds looking for shariah-compliant assets.
She said one of the most important market segments in Malaysia is the bond market which has established itself as a major source of financing for corporates in Malaysia.
"It has also emerged to become among the region's largest local currency bond markets with a fund size of US$147 billion (RM515 billion)," she said.
More significantly, the market's growth has been driven by corporate issuances, accounting for 52 percent of the outstanding bonds," she said.
Zarinah said recent liberalisation measures introduced have facilitated foreign issuers to tap into the Malaysian bond market.
Year-to-date, 10 foreign entities have issued ringgit-denominated bonds amounting to US$2 billion (RM7.1 billion), she said, adding that foreign investments in ringgit bonds have risen to US$16.1 billion (RM56.4 billion).
-- BERNAMA
