The global issuance of Islamic bonds, or sukuk, fell 35% to US$5.3 billion (RM18.69 billion) in the second quarter compared with a year earlier but a rebound may be within sight, data from Zawya Sukuk Monitor shows. Year-on-year declines in the primary sukuk market were offset by a 164% surge in volume compared with the first quarter for sukuk, indicating renewed demand for Shariah-compliant debt instruments, according to Zawya.com's latest research.
Investors are once again putting faith in the sukuk market despite the ongoing financial crisis, which continues to weigh on banks and finance companies, reports Zawya Dow Jones.
The report quoted Standard Chartered Bank's chief executive officer for Islamic banking Afaq Khan as saying: "The global market for sukuk issuance should recover by the second half of 2009. We expect close to US$10 billion in primary sukuk issuance this year."
Malaysia and Indonesia topped Zawya's list of issuers, followed by Bahrain and Saudi Arabia. A total of 42 bonds went to market in the second quarter, out of which 30 deals where sold by governments, the data shows.
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