INTERNATIONAL. As the global crisis continues, Islamic bonds witness a clear turnaround in the first half of 2010 (H1’10) compared to the sharp fall in 2009 and 2008.
Global sukuk issuances in H1'10 reached US$20.4 billion, a 99% growth to H1’09, yet still less than H1’07 all time high at US$ 24 billion, according to a report released by London based, IFIS, Islamic Finance Information Service.
The report shows that South East Asia denominates the sukuk market with issuances worth US$17.35 billion in H1’10 compared to US$8.89 billion in H1’09 and even US$4.5 billion in H1’08.
Malaysia topped the issuer countries in terms of the amount and the numbers of issuances with 310 issuances worth US$ 15.4 billion, followed by Indonesia with 16 issuances amounting to US$ 1.75 billion.
The GCC Sukuk market recorded zero issuances on the corporate level, and only one Quasi Sovereign issuance for Saudi Electricity.
According to the report, Sukuk issuances in US Dollar increased by 29%, a surge attributed to the rise in International issuances from US$1.4 billion in H1’09 to US$ 2.72 billion in H1’10. As for the currency denomination, Malaysian Ringgit was recorded as the number one currency in which Sukuk were denominated on the domestic level, accounting for about 84% of total domestic issuances and 69.6% of total issuances in H1’10.
HSBC Group topped IFIS Global Sukuk Bookrunners Ranking in H1’10, followed by CIMB Group and Samba Capital. Though CIMB participated in underwriting more Sukuk than HSBC; however, the later managed to underwrite the largest deal in the first half for Saudi Electricity worth US$ 1.9 billion.
On the Arrangers level, CIMB Group managed to regain its first position which it lost to AmInvestment BHD in H1’09. HSBC Group came in the second ranking with 15 issuances.
The report concluded with Market highlights and an outlook for H2’10.
IFIS, Islamic Finance Information Service, www.securities.com/ifis is the pioneer dedicated online platform for the global Islamic Finance Industry. IFIS coverage is comprehensive and global, covering all news, research, analysis, ratings, regulations and events related to Islamic Finance.
IFIS maintains Global databases on Islamic Bonds Market, Islamic Mutual Funds, Islamic Financial transactions, Islamic project Finance, Law firms in Islamic Finance and Shariah Scholars Database.