Primary Sukuk Market to pickup in March

After a slow start to the year in the primary Sukuk market, RHB Research is expecting a slew announcements in final month of 1Q15.

In Asia Queuing in the pipeline are issuances from sovereigns including Malaysia, Indonesia and potentially Hong Kong, which may be coming to the market again after its debut issuance last year. From the corporates, Petronas is eyeing an USD7bn issuance and EXIM Malaysia may also come to the market.

In the Gulf, this week Qatar Islamic Bank received shareholders’ nod for a Tier 1 sukuk issuance, whilst Emirates Airlines announced a UK backed sukuk of up to USD1bn to fund for the its A380 fleet expansion. RHB Research is expecting a more active primary market toward the end of 1Q15 going into 2Q15.