Sukuk issuances top fund-raising activity with RM78.9 billion

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MANY APPLICATIONS: A total of 33 applications for corporate bonds and sukuk were approved during the fourth quarter, an increase of 120 per cent against the 15 applications approved in the previous quarter.

KUALA LUMPUR: Ringgit-denominated sukuk issuances dominated fund-raising activities approved by the Securities Commission (SC) in 2011, accounting for RM78.9 billion out of RM118.9 billion total funds approved through the capital market.

In its Fourth Quarter 2011 Scorecard released yesterday, the SC said more than half of the amount to be raised from sukuk issuances was approved during the fourth quarter, through 15 ringgit-denominated sukuk issues which were set to raise RM41.7 billion from the market.

The SC noted that fund-raising activities through issuances of corporate bonds and sukuk had increased significantly.

A total of 33 applications for corporate bonds and sukuk were approved during the fourth quarter, an increase of 120 per cent against the 15 applications approved in the previous quarter.

“These involved 28 ringgit-denominated issues and eight foreign currency-denominated issues.

“The approvals also included the world’s largest corporate sukuk programme of RM23.3 billion by Projek Lebuhraya Usahasama Bhd,” it said.

The SC said corporate bonds and sukuk issues approved in the fourth quarter were expected to raise a total of RM48.2 billion, which was three times more than the RM16.1 billion approved in the previous quarter.

“In total, almost RM112.3 billion in ringgit-denominated corporate bonds and sukuk was approved as of end 2011, which is almost double the RM63.6 billion approved in 2010,” it said.

The SC also approved two applications for initial public offering in fourth quarter.

They were expected to raise RM820.8 million from the capital market and to have a combined potential market capitalisation of RM3.2 billion.

On collective investment schemes, the SC approved 33 applications to establish new funds in the fourth quarter as compared to 20 in the third quarter.

Out of the total applications for new funds, 14 were for the establishment of new unit trust funds, 18 for wholesale funds and one for real estate investment trust. — Bernama