KUALA LUMPUR: Dollar sukuk issuance boosted the global sukuk market in the first quarter 2018 (Q118), climbing 47.6 per cent year-on-year (y-o-y) to US$10.4 billion (US$1=RM3.98) and accounted for 34.5 per cent of the global sukuk issuance as at end-March 2018 (end-March 2017: US$7 billion).
RAM Ratings Services Bhd in a statement yesterday said the bulk of dollar sukuk stemmed from the United Arab Emirates (31.3 per cent) and Indonesia (28.9 per cent), followed by Malaysia (22.4 per cent), Saudi Arabia (16.9 per cent) and Qatar (0.5 per cent).
“Year-to-date (y-t-d) global sukuk issuance expanded by 44.4 per cent y-o-y in totalling US$30.0 billion, with Malaysia maintaining its lead with a market share of 38.2 per cent,” it said.
The rating house highlighted that Saudi Arabia and Indonesia came next with a share of 21.7 per cent and 18.2 per cent respectively.
RAM Ratings’ latest Sukuk Snapshot edition reports that on the domestic level, outstanding Malaysian sukuk strengthened 15.2 per cent y-o-y in standing at RM796.6 billion as of end-March 2018.
As a percentage of the entire Malaysian bond market, sukuk issuance remained robust at 59.3 per cent as at the same date.
A total of RM17.9 billion of domestic sukuk was issued during the month, bringing the y-t-d issuance value to RM48.6 billion as at end-March 2018.
Similar to past trends, the financial services and infrastructure & utilities sectors were still the main drivers of the domestic sukuk market, with the total issuance of both sectors amounting to RM12.2 billion for the quarter. — Bernama