S&P: Islamic Syndication Deals Exceed $50 Billion in H1 2020

S&P: Islamic Syndication Deals Exceed $50 Billion in H1 2020

By contrast, total sukuk issuance dropped 27% in the first half of this year. "We've observed some improvement recently however, suggesting that the steep drop in sukuk issuance volumes might not be indicative of the market's full-year performance,“ said S&P in the report.

The Islamic syndicated loans market has been modestly outperforming the sukuk market this year, the report said, noting that Islamic syndications could increasingly complement traditional financing options.

Islamic countries tend to seek conventional financing in times of crisis. This year, GCC governments and government-related entities have tapped the conventional markets for bonds and syndications more often than the sukuk market. There are several reasons for this, but the most common relates to the complexity of issuing Islamic instruments, particularly sukuk, due to a lack of standardization. Faster execution and