Fitch Ratings Expects Global Sukuk Issuances to Maintain Momentum Through 2021

Investor appetite is expected to continue its current momentum, supporting global Sukuk issuances through 2021, as issuers seek to meet upcoming maturities and diversify funding, according to Fitch Ratings (Fitch). Total outstanding Sukuk globally grew 3.0% in the first quarter of 2021 (1Q 2021), compared to the final quarter of 2020, to reach USD 715.2 billion at the end of 1Q 2021.

Why it Matters?

Infrequent or one-off Sukuk issuances are anticipated to support Sukuk volumes in 2021, as sovereign funding requirements could see a dip amidst higher oil prices and a lower requirement for pandemic-related support, in addition to the economic recovery. Global and emerging market trends, such as the impact of rising US treasury yields on fixed-income mark...