Sukuk Issuances in Malaysia Expected to Rise in the Second Half of 2020

Based on industry feedback in the midst of the pandemic, the Securities Commission Malaysia has stated that it expects up to MYR 100 billion in total corporate bond and Sukuk issuances for 2020, majority of which is expected to be Sukuk (based on Sukuk issuances having accounted for an average of 70% of corporate issuances over the past three years).

Analysis from iFAST Capital in Malaysia indicates that total Sukuk issuances in Malaysia for the first seven months of 2020 (ending 31st of July 2020) amounted to MYR 34 billion, down 53% year-over-year (YoY), this decline largely attributed to COVID-19. Data from the Malaysian Rating Corporation indicates that total gross issuances of corporate bonds during the first half...