“Malaysia is seen as a poster child for bond market development”
Syed Alwi Mohamed Sultan, head of Islamic Banking, Asia Pacific, BNP Paribas Malaysia, feels that the spectacular growth of the Sukuk market is vindication of its viability as an alternative source of liquidity. February 24, 2014 | Syed Alwi Mohamed SultanMalaysia’s Sukuk market is recognized as the most vibrant and active in the world. During 2013, Malaysia maintained its top position, yet again, as the largest Sukuk issuing nation with a 69% share of total issuances in 2013 amounting to almost $82.4 billion. This is a higher market size than the performance in 2012, when Sukuk issuances in Malaysia was 56% of total Sukuk issued during 2012. In the emerging market, Malaysia is seen as a poster child for bond market development given that it is now the fourth-largest bond market in Asia, after Japan, China and South Korea. Malaysia’s bond and Sukuk market has a strong infrastructure and a record of solid growth due to a transparent and predictable regulatory environment, the availability of independent credit research, the existence of “risk-free” bonds or Sukuk of various tenors, the provision of rating by local rating agencies and a bond or Sukuk pricing service. In December 2011, Bank Negara Malaysia (BNM) issued its Financial Sector Blueprint 2011-2020, in which it clearly identifies several recommendations for the “Internationalization of Islamic Finance”. Among the recommendations is to encourage Malaysian issuers to offer foreign currency Islamic capital market investment products and to facilitate regular Sukuk issuance by the Government and government-linked companies. This is the inspiration behind the establishment of EXIM Bank Malaysia’s (MEXIM) $1 billion Multicurrency Sukuk Issuance Programme under the special purpose vehicle, EXIM Sukuk Malaysia Berhad. On February 19, 2014, the first Sukuk series from the programme was issued to the market marking the introduction of the world’s first ever Sukuk to be issued by an Export-Import (Ex-Im) bank. It is also the first US Dollar denominated Sukuk for 2014, hence making it the second consecutive year running where a Malaysian issuer has opened the accounts of international Sukuk issuance. MEXIM Sukuk structure Categories: Trustees Custodians and Depositories,Malaysia,Markets Exchanges, Asset Management, Trustees and Custodians,Malaysia,Markets & Exchanges, Keywords:Syed Alwi Mohamed Sultan, Dato’ Adissadikin Ali, MEXIM, BNP Paribas Malaysia, BNM, Sukuk, US Fed, Janet Yellen
Syed Alwi Mohamed Sultan, Dato’ Adissadikin Ali, MEXIM, BNP Paribas Malaysia, BNM, Sukuk, US Fed, Janet Yellen
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