S&P: Global sukuk issues to stay below peak levels

Standard & Poor's Rating Services (S&P) expects sukuk issuance to remain at below-peak levels in 2016 mainly because Bank Negara Malaysia (BNM), the largest issuers of sukuk worldwide, has stopped issuing Islamic notes. In absence of its biggest issuer, the rating agency expects sukuk issuance to reach US$50 billion-US$55 billion (RM219.5 billion-RM241.45 billion) in 2016, compared with US$63.5 billion in 2015 and US$116.4 billion in 2014.
Excluding the BNM effect, S&P said sukuk issuance dropped by around 5% in 2015 from 2014. Three main factors are expected to shape the performance of the sukuk market in 2016: monetary policy developments in the US and Europe, the drop in oil prices, and the possible lifting of sanctions on Iran.