Domestic Issuances in Malaysia, Qatar, Brunei and Turkey

Sovereign issuances aimed at domestic markets have dominated the Sukuk market over the last two weeks as a large GII Murabahah issuance from Bank Negara of Malaysia, as well domestic issuances in Brunei and Turkey demonstrated localised efforts by governments to develop and support domestic Islamic Finance markets. The Central Bank of Qatar on behalf of the Government of Qatar also issued four domestic Sukuk totalling QAR 2,625 billion.

Recent notable domestic issuances included Malaysia selling RM2 billion of GII Murabahah Sukuk. The issuance to mature in 2025 generated an order book of RM5,779 billion from 234 bids. Brunei issued as part of its short-term Sukuk Ijara facility for BN$100 million. Small issuances were also made in Bangladesh and Bahrain, whilst Qatar made a second batch of Sukuk issuance’s for this year, raising a total of QAR2.625 billion from four sukuk issued with separate tenors.

Turkey issued two Sukuk Ijara, a fixed rent rate lease certificates for TRY1.1 billion and CPI-Indexed lease certificates for TRY1.07 billion.

The Qatar Central Bank entered its domestic market for the second time in as many months to issue four long sukuk ranging from three years up to ten years.

International Sukuk Market

Pakistan is holding investor road shows for its third US dollar Sukuk issuance which is expected to conclude next week. The South Asian nation is seeking to raise up to US$1 billion.

Corporate Malaysian Sukuk Market

In the corporate space Malaysia’s Cagamas issued a short-term Sukuk Murabahah for RM500 million, whilst Public Sector Home Financing Board issued Sukuk of up to RM4 billion (US$965.92 million). Finally Malaysia Marine and Heavy Engineering Holdings issued a Sukuk Murabahah for RM20 million (US$4.83 million).