Sukuk issuances reach record US$12.7 billion in the year-to-date (By IFN)

See: http://redmoney.newsweaver.co.uk/17qfdwf1eh0h38rwoni3wx?email=true&a=6&p=23560645&t=21136205

GLOBAL: The volume of Sukuk issuances has reached a record US$12.7 billion in the year-to-date (YTD), boosted by a landmark US$1.25 billion dual-tranche Islamic bond sale by the Dubai government on the 24th April.



Data from Dealogic shows that the level of Sukuk offerings so far this year is more than three times the previous record of US$4.2 billion issued during the same period in 2011.

“Domestic issuance continues to dominate Sukuk volume and accounts for 63% (US$8 billion) of total volume in 2012 YTD. Despite this, the share of internationally marketed Sukuk issuance, dominated exclusively by the issuers from the MENA region, has risen to 37%, the highest share since 2008 (43%) as volume has more than trebled year-on-year to US$3.5 billion,” noted Dealogic in its DCM StatShot.

The unprecedented level of Islamic bond sales has fuelled optimism that 2012 will be another record-breaking year for the international Sukuk mart. Professor Dr Malik Muhammad al Awan, the Shariah advisor at Hong Leong Islamic Bank and Hong Leong MSIG Takaful, believes that the market will close at US$125 billion this year; driven by sales from the GCC.

The activity in the Sukuk market has also seen competition heat up between Malaysian and Saudi offerings. Malaysian Sukuk sales that have traditionally dominated the market recorded a 42% share of domestic issuances in the YTD, a record low; while Saudi sales accounted for 59% or US$4.7 billion of local Sukuk sales during the period.

Nonetheless, Dr Malik noted that Malaysia will continue to be an attractive platform for Sukuk sales, due to the pricing of Islamic bonds in the country and its accommodative tax environment.

Meanwhile, the DCM StatShot showed that HSBC led in rankings for international Sukuk bookrunner, with a 31.8% market share; followed by Deutsche Bank and Citi with market shares of 18.6% and 13.2%, respectively.