Underwriting Cross-Border Sukuk Deals

Before issuers tap the global fixed market, lead arrangers would have been selected first as they will play a vital role in marketing the debt instruments. Some regional GCC banks would be able to underwrite deals (notably the UAE and Saudi financial institutions), while other GCC banks may face some restrictions from their respective central banks on underwriting cross-border deals.Prospective issuers may wish to conduct some research to see the most active underwriters within a geographical area (for instance, Bloomberg’s US dollar/international Sukuk issuance league table).The market standard in GCC debt transactions has seen underwriting/lead orders provided mostly by regional banks that have pre-established interest to purchase the Sukuk for their treasury books.