$39 billion Sukuk issues in pipeline

Islamic bond sales may reach record on Gulf demand

 sukuk

Islamic bond sales may rebound and reach a record this year, with the Gulf accounting for about two-thirds of the debt issued as higher yields attract investors, NCB Capital said.

There is an estimated ‘pipeline’ of about $39.3 billion of so-called sukuk, Jarmo Kotilaine, chief economist at Saudi Arabia’s NCB Capital, said in a report received on Monday. He estimates the pipeline from the Gulf Cooperation Council to be $24.6 billion.

“GCC sukuks, which have also faced a sell-off in recent months, are currently trading at attractive yields,” Kotilaine wrote in the GCC Debt Capital Markets report. “Sukuks have the potential to capitalise on the growing appeal of Shariah-compliant finance in today’s significantly more risk-averse market environment.”

Read the rest …

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s