By NST BusinessKUALA LUMPUR: Sovereign sukuk issuance volume will continue to grow in 2018 as governments look to diversify their financing mix and satisfy the liquidity needs of Islamic retail banks, says Moody’s Investors Service. Total sukuk issuance will reach around US$95 billion by the end of this year, after more than US$85 billion in 2016, including more than US$50 billion of sukuk issuance by sovereigns. In a report, 'Sovereign: Sovereign sukuk issuance gains momentum, with new players entering the market', Moody’s highlighted a number of factors to support issuance. Despite Malaysia's falling share of sovereign sukuk issuance, it remains the largest sukuk market with an estimated 43 per cent of total sovereign sukuk outstanding in 2016. Narrowing of spreads over conventional bonds will also contribute to sukuk issuance, it added.

Source: New Strait Times December 05, 2017 08:48 UTC