Global sukuk issuance may exceed $20bn

Reuters: Global issuance of Islamic bonds, or sukuk, may surpass $20bn, recovering from a lull this year, helped by government spending and energy financing needs, a poll shows.

According to the poll of 12 Islamic finance bankers and experts, six respondents said the new issuance would exceed $20bn, while four said it would be $15bn-$17bn and only one put the figure of less than $15bn.

Sukuk issuance received a double blow last year from the global liquidity freeze and a debate on the compliance of some of its structures with Islamic law, with issuance slumping more than 50 percent to $14.9bn, according to Standard & Poor’s.

Issuance during the first seven months of this year came in at $9.3bn compared with $11.1bn for the same period in 2008, the ratings agency has said.[Read More]