The Edge Markets: Malaysia was largest sukuk issuer globally in 2017

The Edge Markets

KUALA LUMPUR (Feb 21): 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 (RAM Ratings) 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 (LPPSA) and Prasarana Malaysia Bhd, supported Malaysia’s local-currency (LCY) 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.