RAM: Global Sukuk Issuances Contract by 9.1% YoY in 1H 2020; Sovereign Sukuk Dominate

Global Sukuk issuances have declined 9.1% year-on-year (YoY) to a total issuance value of USD 65.6 billion in the first half of 2020 (1H 2020), from USD 72.1 billion reported in 1H 2019, according to a recent report released by RAM Ratings (RAM).

Although a slow performance was anticipated by the global Sukuk market in 2020, sovereigns and corporates made use of low interest rates to secure affordable funding, propped by a boost in COVID-19 related stimulus packages and lower yields, RAM stated.

The decline in global Sukuk issuance was attributed to a 17.1% YoY decrease in sovereign issuance to USD 39.2 billion in 1H 2020, down from USD 47.2 billion in 1H 2019. Although the period w...