Zeti: 2011 sukuk issues on track to be highest ever

ZetiZetiKUALA LUMPUR, Feb 21 — Global sukuk issuance this year will likely top the all-time high seen in 2007, Bank Negara Malaysia (BNM) governor Tan Sri Dr Zeti Akhtar Aziz has said.

A total of US$35 billion (RM106.36 billion) in Islamic bonds were issued in 2007, with Malaysia contributing some US$25 billion that year.

“From the approvals that we have given and the Securities Commission (SC) has given, we believe that it will surpass the 2007 level,” Zeti told reporters today after attending the launch of Bloomberg’s Islamic finance platform here.

However, she declined to give an estimate on the total value of sukuks BNM and SC have approved for this year.

“You’ll have to wait and see,” she said.

Speaking earlier at the launch, Zeti said 2011 looked set to be an “exciting” year for the global Islamic finance industry after sukuk issuance last year surpassed that of 2009 by some 20 per cent.

Malaysia leads the world in sukuk issuances, follow by Saudi Arabia, Indonesia and Bahrain.

Malaysia’s current share of the global sukuk market stands at 62 per cent, according to the Association of Islamic Banking Institutions Malaysia (AIBIM).

The association also put the outstanding amount for government sukuks as of February 16 at RM81.5 billion, with RM45 billion set to mature this year.



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