Lowering the Cost of Funding for Sukuk Issuers in 2022
March 10, 2022 | Updated at March 10, 2022
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Email Potential Sukuk issuers have a genuine concern. The movements of United States (US) Treasury yields and US dollar midswap rates are expected to impact their cost of funding in 2022. Issuers should be conscious of issuance sizes and whether they prefer to get the right pricing or targeted size.
Right Pricing
One of the pillars within Islamic/ conventional debt capital markets is determining the right pricing for your cost of funding. This vital issue is a deal-breaker for potential issuers. Most investors know that some Gulf Cooperation Council (GCC) states are better rated than others in emerging markets (EMs). Those EMs can issue Sukuk at a reduced cost, despite their lower credit ratings. The road towards correcting the pricing variance (for GCC issuer...
