According to figures compiled by IFIS analysts, the 2004 Islamic bond market chartered a positive growth from US$ 1.9 billion in 2003 to over US$6.7 billion in 2004. [Click here for full listing of IFIS Islamic Bonds Table 2004]
IFIS analysts believe 2005 is set to chart similar growth. The total market size for Corporate and Sovereign issues for 1st Quarter 2005 year to date is US$1.08 billion. Taking into consideration projected deals for the rest of the year, it is anticipated the market will surpass the 2004 total Sukuk issuance. There are currently 12 Sukuk that have been issued to date.
The Government of Pakistan headlined Asian Sovereign bond issuance for the 1st quarter 2005, with a US$600 million 5 year Sukuk. Backed by the Government of Pakistan, this issue attracted investors from Europe, Asia and the Gulf.
The year’s second sovereign issue – backed by the Government of Bahrain – was a US$79.5 Million Sukuk which was oversubscribed by 50%.
Issued Corporate Bonds – The top three Corporate Sukuk issuers year to date are Durrat Sukuk (Bahrain), Prembajaya Holdings (Malaysia) and Ample Zone (Malaysia).
Lead Managers – The top rankings for Lead Managers to date go to Citigroup and HSBC Amanah. Bahrain Monetary Agency, placed second, Kuwait Finance House and Liquidity Management Centre placed third.
1st quarter 2005 figures for Announced Sukuks tallied by IFIS show over US$5.1 billion in deals in the pipeline, with issuers from the Gulf, Malaysia, Indonesia and the UK leading the charge.
In the Malaysian markets, the most prominent participant is Jimah Energy Ventures, which plans to issue over US$1.3 billion in Islamic bonds this year, according to sources from Jimah Energy Ventures.
The Islamic Development Bank, a Saudi Arabia based supra-national entity, plans over US$1 billion bonds next quarter 2005.
Global Managers with significant activity forecasted include Commerce International Merchant Bank (CIMB), HSBC Amanah, Dubai Islamic Bank, Deutsche Bank, and Emirates Islamic Bank.
Non-Islamic issuers continue to show an interest in this niche market. Volaw Trust Jersey, UK have indicated they may be issuing another sukuk in 2005, with the underlying asset in the commercial sector. This would be a follow up to their award winning February 2004 effort which raised US$26.13 Million. It was the first securitisation exercise using a commercial fleet of vehicles as security.
Entities like the Bahrain Financial Harbour will be issuing a sukuk to finance its Seafront property development.
Tuesday, April 5- 2005 @ 9:11 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.