Global sovereign sukuk issuance expected to recover in 2019: rating agency

Source: Xinhua| 2019-02-19 16:11:01|Editor: xuxin
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KUALA LUMPUR, Feb. 19 (Xinhua) -- The rating agency Moody's Investor Service said on Tuesday it expects global sovereign sukuk (Islamic bonds) issuance to recover this year and surpass its record-high volumes by 2020.

The rating agency said in a report that the demand will be driven by higher deficit financing needs amid moderate oil prices and higher sukuk refinancing needs especially in Malaysia, as major issuers gradually increase the share of sukuk in total net issuance.

"By 2020, we expect total gross sovereign sukuk issuance, including short-term securities, to surpass the all-time high of 93 billion U.S. dollars reached in 2012," it added.

Global gross sovereign sukuk issuance declined by 5 percent to 78 billion U.S. dollars in 2018, from 82 billion U.S. dollars in 2017.

"In the medium term, gross sovereign issuance will rise further as the sukuk issued by Gulf Cooperation Council governments begin to mature," the rating agency added.

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