July 2011 witnessed the issuance of benchmark sukuk globally. The month started with the closing of a two-tranche USD2 billion Wakala global sukuk by the Malaysian government and ended with the reopening of the Government Investment Issue which helped the government raise another MYR4 billion (USD1.34 billion) in the domestic market.
The Malaysian government also sold a series of BNM-IDMs throughout the month bringing the total of sukuk issued by the Malaysian government in July to USD5.7billion.
Similarly, the GCC region witnessed a relatively fast pace of sukuk issuance during July, albeit at a corporate level. The month started with the closing of an SAR1.8 billion (USD480 million) sukuk by Saudi International Petrochemical Company. Sipchem's first sukuk was sold domestically, limited to local sophisticated investors, oversubscribed and got listed on Tadawul, the Saudi stock exchange.
Two weeks later, Saudi Binladin Group sold SAR1 billion one-year sukuk domestically. The company's third sukuk comes on the heels of an earlier nine-month sukuk that was fully redeemed in April. Qatar's Almana Group chose to sell its second sukuk internationally and managed to sell USD215 million of a sukuk that got listed on London Stock Exchange (LSE)...
Read Full Story