Despite Adha Holidays, Sukuk market was active in November, while major issues carried forward to next year as 2010 comes to an end, writes Adnan Halawi.
ZAWYA
December 6, 2010
06 December 2010
Despite Adha Holidays, Sukuk market was active in November, while major issues carried forward to next year as 2010 comes to an end, writes Adnan Halawi. November Issues
Despite the long Eid break in the Muslim world, Sukuk worth USD 5.79 billion were issued in November, up 8% from the previous month and more than double from the Sukuk issued in November last year.
The most remarkable issue in November came from the United Arab Emirates (UAE), largest Islamic lender Abu Dhabi Islamic Bank (ADIB) which closed a USD750 million sukuk on November 4th, marking the largest corporate issue out of UAE this year. Listed on London Stock Exchange and paying 3.745% on semi annual basis, ADIB's second sukuk was oversubscribed 4.8 times.
From Malaysia, the world's largest market for Shariah compliant bonds, the Government issued a MYR3 billion (USD950 million) tranche part of its Bai Bithaman Ajil Government Investment Issue on November 29th.
Earlier in the month, Trans Thai-Malaysia (Thailand) (TTMT) - subsidiary of Thai PTT Group closed MYR600 million Sukuk program in full with tranches of tenors ranging from 5 to 15 years. The significance of this issue lies in the fact that it represents the first Thai issuer in Islamic capital markets and could act as a catalyst for more Islamic financing by Thai issuers in Thailand and abroad.
On November 8, Government of Pakistan sold successfully PKR51.84 (USD600 million) billion sukuk as part of its new PKR80 billion Ijarah Sukuk program.
