Malaysia retains position as world's largest sukuk issuer

KUALA LUMPUR: Malaysia maintained its leadership as the world's largest sukuk issuer in 2017, accounting for US$36.5 billion (RM142.7 billion) of global sukuk issuance.
It was followed by Saudi Arabia (US$31.7 billion), Indonesia (US$6.9 billion) and Qatar (US$5.6 billion), RAM Rating Services Bhd said in a statement today.
The volume of global sukuk issuance last year exceeded RAM Ratings' projection of US$85 billion-US$90 billion, having swelled 33.6% year-on-year to US$97.3 billion (2016: US$72.9 billion). This was bolstered by a 144.5% or US$46.6 billion spike in issuances from Gulf Cooperation Council countries, it said.
In 2016, Malaysia also topped the global sukuk arena with US$29.9 billion (RM116.9 billion) of total global issuance.
Meanwhile, quasi-government heavyweights, led by DanaInfra Nasional Bhd, Public Sector Home Financing Board and Prasarana Malaysia Bhd, supported Malaysia’s local-currency sukuk issuance in 2017.
RAM Ratings head of Islamic finance Ruslena Ramli said LCY sukuk issuance amounted to RM168.7 billion last year, also surpassing RAM’s full-year projection of RM100 billion-RM120 billion.
“We anticipate DanaInfra’s sukuk issuance to increase significantly in 2018, driven by the funding requirements for the MRT Line 2 and the Pan Borneo Highway,” she added. – Bernama