Sep 05 2010 |
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Global Sukuk Markets - August In Review
Sukuk recovery continues, more countries join the club and new structures introduced in August, writes Adnan Halawi.August Issues: The Sukuk market continues to show signs of recovery despite the fact that the holy month of Ramadan started in the first, half which usually slows down the pace of issuance. Around USD4.38 billion of Sukuk were issued in August this year, as opposed to USD2.5 billion in August last year, according to data compiled by Zawya's Sukuk Monitor.
August witnessed the first sukuk to be issued out of Turkey. The USD100 million Kuveyt Turk Katilim Bankasi Sukuk was oversubscribed and listed on London Stock Exchange.
Despite its small size, the UK-based International Innovative Technologies unveiled close to USD 10 million sukuk it issued on July 31. This represents the first corporate sukuk out of UK and, according to analysts, it could lead to spate of new issuances.
Malaysia Airports Capital Berhad (MACB) sold MYR1billion (USD320 million) tranche of its MYR3.1 billion program on August 29.
Other regular sovereign issuers in August included the Central Bank of Bahrain, Central Bank of Gambia, and Indonesia's Ministry of Finance.
August Announcements: Important announcements in August came from Bahrain-based Al Baraka Banking Group which unveiled plans to sell a USD200 million sukuk before the end of this year, the group's first ever sukuk.
Islamic Development Bank (IDB) announced it will issue a USD100 million in Korean currency and raised the program size of its previous IMTN program from USD1.5 billion to USD3.5 billion, of which it plans to issue USD1billion before year end.
September Pipeline: In September, a number of big issues are expected to come from Malaysia. Celcom Transmission is expected to sell part of its MYR 4.2 billion program on September 1, and Padiberas Nasional Berhad (Bernas) part of its MYR750 million program on September 7.
Kuwait's First Investment Company (Al Oula) might issue a sukuk to reschedule an existing deb. It is worth noting that the last Sukuk issued out of Kuwait was by Villamar Sukuk Company Limited back in May 2008.
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