Persian Gulf borrowers are selling ringgit-denominated Islamic bonds at a record pace in Malaysia to raise funds for expansion and take advantage of demand in the world’s biggest market for shariah-compliant bonds.
Issuance surged to 1 billion ringgit ($318 million) this year, the most since 2008 when Gulf companies started tapping the Malaysian market, data compiled by Bloomberg show. Last year, 100 million-ringgit of debt was sold. Dubai’s government is “likely” to sell bonds next year and a Malaysian offering is a possibility, Abdulrahman Al Saleh, the director general of the emirate’s Department of Finance, said Dec. 14.
“More ringgit sukuk from Gulf issuers will mean having more liquidity in the market,” Zamri Shariff, the head of asset management at Asian Finance Bank Bhd., the Kuala Lumpur-based unit of Qatar Islamic Bank SAQ, said in an e-mail response to questions yesterday. “That absolutely widens our scope for investment.”
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