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Cross-border corporate sukuk issuance is set to rise significantly from 2022 lows, with companies in the Gulf Cooperation Council (GCC) countries and Malaysia (A3 stable) accounting for most of the issuance, according to a report from Moody's Investors Service.
"Despite challenging market conditions, year-to-date cross-border corporate sukuk issuances as of 18 May 2023 have already doubled from the issuance volume in full-year 2022 to $5.2 billion," said Maisam Hasnain, a Moody's Vice President and Senior Analyst. This is likely to grow further, he added.
The increase in issuance this year will be driven by companies that postponed issuance last year because of capital market volatility, companies seeking to refinance near-term sukuk maturities and first-time rated sukuk issuers looking to diversify funding sources
Sukuk programs that Moody’s has rated this year include a $3 billion program under Saudi Electricity Company (SEC, A1 positive) and a $5 billion program issued under Malaysia's sovereign wealth fund, Khazanah Nasional Berhad (A3 stable).
(Writing by Brinda Darasha; editing by Seban Scaria)
