KUALA LUMPUR (Jan 25): RAM Ratings Bhd said Malaysia continued to be the leading sukuk issuer in 2016, accounting for US$29.9 billion or 41.1% of total global sukuk issuance.
 
In 2015, Malaysia saw issuance of US$30.4 billion, making up 48% of total global issuance.
 
In a statement today, the ratings agency said Malaysia was followed by Indonesia (16.3% or US$11.9 billion) and the United Arab Emirates (10.9% or US$7.9 billion).
 
“Greater sukuk issuance in non-core markets also augmented the global sukuk base to US$72.9 billion at year-end (end-2015: US$63.4 billion) — with issues from Turkey (US$5.0 billion), Pakistan (US$4.8 billion) and Bangladesh (US$1.1 billion) featuring prominently,” said RAM.
 
It said a total of US$72.9 billion of issuance was seen for 2016, following the US$18.2 billion global sukuk issuance in the fourth quarter of 2016 (4QCY16).
 
“Last year, global sukuk issuance exceeded RAM’s projection of USD55 billion–USD65 billion,” notes RAM head of Islamic finance Ruslena Ramli.
 
Meanwhile, a total of RM29.9 billion of domestic sukuk was issued in 4QCY16, adding up to total issuance of RM129.4 billion for the year.
 
RAM said the financial services and infrastructure & utilities sectors were the main drivers for domestic sukuk issuance for the year, outperforming RAM’s full-year projection of RM100 billion to RM120 billion.
 
It noted the value of outstanding sukuk also increased to RM661.9 billion as at end of last year, accounting for 56.3% of overall Malaysian market’s outstanding debt securities.