Sukuk issuance reached an enormous record high of USD 85 billion in 2011

Investments reaching sky highfor Sukuk in Middle According to the study of the Sukuk
Market it is observed that the Global Sukuk issued in December 2011,
managed to reach a record high through the final issuance of USD 5
billion, marking a record issuance to a total of USD 85 billion, that
doubles the overall results from 2001, a 90.2% increase from 2010 is
seen reported by a Kuwaiti bank said on Friday.


Sukuk
being the term used for bonds issued according to Islamic Sharia law
has gained record heights and popularity in the global financial market.
The Sovereign issuance was the main element that has worked as a
catalyst for the Sukuk Market in 2011. Where it reached a total of USD
59 billion, while it was also seen that company’s issuance reached USD
19 billion, said Kuwait Finance House Research in its monthly report
making it a major role player for Sukuk in the Middle Eastern region.
The
global Sukuk secondary market has also shown growth in the number of
issuance and investments it has also reached an all time high of USD
178.2 billion by the end of 2011, a 24% increase from USD 143.3 billion
stands outstanding at the end of 2010.
While
on a monthly basis the issuances dropped below the yearly average which
was a quiet month for issuances of Sukuk made outside of Malaysia.
However the primary market was still subjected to have recorded a yearly
increase of 0.7% for December last year that continued a positive
momentum in investments.
There were
many noticeable investments included in the Middle Eastern region among
the notable issuances for the last month were the Horizon Sukuk, issued
under an SPV on behalf of the Gulf International Bank. The Sukuk was
issued through the Cayman Islands that raised USD 300 million from only
through the international investors. Another largest issuance for the
month was the third issuance of the year for Pakistan Domestic Sukuk
Company Limited that was issued on behalf of the government.
The
USD 781.1 million Sukuk Al-Ijarah was also structured according to
three year tenure. The vast majority included in the primary market
issuances were shifted to the market in Malaysia and it domiciled in
Malaysia too, the remaining Sukuk leading investments included only one
Sukuk each arising from Pakistan playing part for the South Asian region
and Bahrain typically known for its stable secured financial
investment, while Gambia saw its largest issuance yet since the year
2001 that was of USD 18.9 million for the last month. The market was
driven by individual sovereign issuances that were summed up to have
collected revenue amounting to USD 4 billion while corporate issuances
were at a three month low revenue.

East.

NICE SHARING

KEEP IT UP

U R WELCOME