Global sukuk market is heading toward a correction in 2015 after the Central Bank of Malaysia (BNM) – one of the largest issuers of sukuk worldwide – stopped issuing earlier this year, said Standard & Poor's Ratings Services in a report titled “Global Sukuk Issuance Stalls In 2015 As Major Issuer Exits The Market."
BNM's move leaves the door open to issuers such as the International Islamic Liquidity Management Corporation (IILM) and the Islamic Development Bank (IDB) to step up their issuance and provide the industry with liquidity, thereby contributing to the development of an Islamic yield curve, S&P added.
"In the first half of 2015, BNM's pullback came on back of a 42.5% drop in the total sukuk issuance, compared with the same period a year earlier, said Standard & Poor's Global Head of Islamic Finance Mohamed Damak. "In 2014, BNM alone issued about $45 billion of sukuk out of a total issuance of $116.4 billion.”
