Two more companies in Saudi Arabia have joined a host of Gulf corporates looking to issue Islamic bonds amid heightened liquidity needs.
On Monday, Arab National Bank announced its plans to issue US-dollar-denominated Tier 2 capital sukuk, while Banque Saudi Fransi said
Sukuk issuance has recently bounced back following a sharp slowdown during the global lockdown in March and April. Islamic bonds supply is expected to go up further this year, as firms seek to diversify capital sources and benefit from low funding costs.
During the second quarter of 2020, the Gulf Cooperation Council (GCC) region, along with other markets like Malaysia, Indonesia, Turkey and Pakistan, saw $12 billion worth of sukuk issuance with a maturity of more than 18 months, up by 42 percent from the preceding quarter, according to Fitch Ratings.
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