How Sukuk Issuances are Benefiting from ESG Trends

The demand for Islamic bonds or Sukuk is predicted to continue growing steadily as more investors look for opportunities that are in line with Environmental, Social, and Governance (ESG) investing and that also generate reliable income.

Why it Matters?

According to Hanifah Hashim, Head of Fixed Income and Sukuk (Malaysia) at Franklin Templeton, one of the major contributing factors to the popularity and expansion of Sukuk, has been its impressive performance with consistently lower volatility, compared to conventional bonds.

Sukuk also offers investors exposure to the fast-growing emerging markets in the Middle East and Southeast Asia, as well as access to liquidity in those regions.

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