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13 Nov | Tuesday
RAM Ratings: Malaysia’s sukuk issuance exceeded projection for 2018

RAM Ratings observed that as at end-September 2018, Malaysia’s sukuk issuance had surpassed RAM Ratings’ projection of RM100 billion–RM120 billion for the year. In 3Q 2018, a total of RM24.9 billion sukuk was issued, bringing the YTD issuance value to RM123.9 billion as at end-September. The growth was led by increased issuance by the Government (+17.0% or RM46.5 billion) despite a 41.8% decline for the corporate sector. The Malaysian sukuk market expanded 11.1% y-o-y to RM827.8 billion as at end-September 2018 (end-September 2017: RM745.2 billion). At the same time, the proportion of outstanding sukuk relative to the overall domestic bond market remained robust at 59.8%.

The latest issue of RAM’s Sukuk Snapshot reports that total global sukuk issuance shrank 12.2% y-o-y to USD66.8 billion as at end-September 2018, from USD76.1 billion a year earlier. That said, Malaysia maintained its dominance with a 35% share of global sukuk issuance, followed by Saudi Arabia (26.5%). Ringgit-denominated sukuk maintained its leadership with a 32.2% share of the global sukuk market. RAM expects the growth of global sukuk issuance to stay muted in 2018, potentially falling below our projection of USD75.0 billion-USD85.0 billion for the year.

The Sukuk Snapshot is designed as a quick reference point for sukuk data and trends. The publication aims to serve the needs of market practitioners, enabling them to monitor global and Malaysian sukuk market developments. Subscribers can retrieve the Snapshot via our website, www.ram.com.my. Non-subscribers may purchase the report at RM500 per copy. For further enquiries, please contact Ain at (603) 7628 1108 or Faiez (603) 7628 1104, or fax (603) 2711 1701/ (603) 7620 8250, or e-mail ain@ram.com.my or faiez@ram.com.my.

Analytical contact
Irfan Afifah Mohd Zaki
(603) 7628 1196
irfan@ram.com.my
 
Media contact
Padthma Subbiah
(603) 7628 1162
padthma@ram.com.my
 
Date of release: 13 November 2018
 
 
The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.
 
RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.
 
Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.
 
Published by RAM Rating Services Berhad
Ó Copyright 2018 by RAM Rating Services Berhad
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