RM14.5b sukuk deals issued in 1H

Monday July 21, 2008 MYT 4:53:12 PM
RAM: RM14.5b sukuk deals issued in 1H


KUALA LUMPUR: Thirty-four new sukuk deals valued at RM14.5bil were closed in the January-June period this, less than half a year ago, RAM Ratings Bhd said.

In a statement issued Monday, it said despite the lower amount, this was still respectable considering the jittery market and widening bond spreads amid the ongoing credit crisis, mounting inflationary pressures.

The ratings agency said that sukuk issues accounted for about 34% of the domestic market’s RM43.4bil of rated corporate bond issues in the first half of this year.

RAM Ratings said the sukuk issues accounted for about 34% of the domestic market’s RM43.4bil of rated corporate bond issues in the first half of this year.

It said infrastructure issues accounted for the bulk of the issuances. Eight corporates from this sector entered the market with some RM8.16bil of sukuk programmes in the first half, accounting for 56% of the total sukuk market. Real estate and construction sector had a 12%-share.

“The more notable sukuk programmes that were closed between January and June this year included those by PLUS SPV Bhd (PLUS SPV), Menara ABS Bhd (Menara ABS) and Al-‘Aqar Capital Sdn Bhd (Al-’Aqar Capital),” it said.

RAM Ratings said the RM4bil (nominal value) sukuk programme by PLUS SPV represents the market’s largest year-to-date sukuk deal.

PLUS SPV is an independent special-purpose company through which PLUS Expressways Berhad had issued sukuk to meet its funding requirements.