S&P: Corporate and infrastructure Sukuk issuance likely to rise, despite recent dip

Corporate and infrastructure Sukuk issuance is likely to rise over the next few years, despite the dip in issues over the past eight months compared to the same period of 2013, says Standard & Poor's Ratings Services in its new report 'Why Corporate And Infrastructure Sukuk Issuance Is Declining, Despite Healthy Prospects'. S&P attributes the decline in corporate and infrastructure Sukuk in large part to cheap and ample bank liquidity, which has made issuers less reliant on the capital markets. The overall small pool of Sukuk issuers, and seasonal factors have also played a role. Nevertheless, corporate and infrastructure Sukuk issuance is expected to increase again over the next few years as companies' refinancing needs grow and entities establish themselves as Sukuk issuers.