Sukuk issuance to fall 5% says report

Sukuk issuance to fall 5% says report

MANAMA: Sukuk issuance is set to fall 5 per cent this year to about $170 billion because of the coronavirus crisis, after four years of rapid growth, according to a Moody's report published yesterday.“The decline will be partly limited by the financing needs of GCC countries because of lower oil prices and the pandemic,” said Moody's vice-president and senior credit officer Nitish Bhojnagarwala.Despite the decline, this year will still see the second highest sukuk issuance total ever, following a 36pc increase last year.Total issuance in the first six months of 2020 dropped to $77bn, down 12pc from the same period last year, as activity in Malaysia and Indonesia flagged.Issuance in southeast Asia dropped by 25pc, while volumes rose by 7pc to $28.5bn in the six countries of the GCC.Within the