US$14 billion Sukuk issuance in December, 120 billion for 2013

Fears that the Fed’s taper will cause interest rates to rise further has triggered a wave of issuance during the 4Q13 (up 68.5% q-o-q) with issuers looking to take advantage of cheaper funding rates. Total Issuance volume for 2013 came in at USD119.7bln, 8.7% less than in 2012. Malaysia accounted for the largest share of the sukuk market during the month with 72.8% of the issuance total. December saw new issuances from a number of jurisdictions such as the UK, Yemen and Singapore, which collectively accounted for 1.8% of issuance volume. Qatar, Saudi Arabia and the UAE continue to witness strong growth this year with further issuances amounting to USD1.5bln, USD1.1bln and USD750mln respectively during the month.