S&P Global: Despite Investors’ Risk Aversion Subsiding, Global Sukuk Issuance to Remain Muted in 2020

According to a Global Sukuk Market report released by S&P Global Ratings (S&P Global) recently, investors are becoming less risk averse due to robust global liquidity. Mohamed Damak, Senior Director and Global Head of Islamic Finance at S&P Global, noted that this has resulted in issuers with good credit quality approaching the market by either reopening Sukuk or accessing established programmes, with debut issuance remaining rare.

Despite this, S&P Global is expecting global Sukuk issuance to remain muted in 2020 as corporates are reducing capital expenditure. Global Sukuk issuance volume fell 27% in the first six months of 2020 and is expected to decline 40% year-over-year to USD 100 billion in 2020, S&...