Get Ready for Corporate Sukuk Boom After Sovereign Rush - Bloomberg:
"The busiest year on record for sovereign Islamic bond sales is poised to be eclipsed as a revival in corporate issuance takes hold in 2015.
Companies in the U.K. and Hong Kong may be among those selling sukuk this year as they follow debut issues from their governments, according to National Bank of Abu Dhabi PJSC, the biggest Middle Eastern underwriter of Islamic bonds in 2014. Corporates in the Gulf Cooperation Council will be encouraged to tap the market as bank liquidity and credit conditions deteriorate amid declining oil prices, Moody’s Investors Service said last month.
Islamic bond investors have been starved of options as established corporate issuers, led by those in the six-nation GCC, which accounts for about a third of all global sales, opted for bank loans over public debt. That’s in contrast to sovereign borrowers, which raced to tap an industry whose assets may climb to $2.6 trillion by 2017, according to PricewaterhouseCoopers LLP. Government borrowers sold 215 Shariah bonds last year as the number of company sales dropped to the lowest since 2004."
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