Fitch Ratings: Sukuk Issuance Rose in 2019 as Diversification Continues – ZAWYA

Fitch Ratings: Sukuk Issuance Rose in 2019 as Diversification Continues – ZAWYA

Long-standing structural impediments to growth remain although, as more corporates tap the sukuk market, potentially including those with weaker credit profiles, legal precedents could eventually be set clarifying creditor treatment in a default.. Fitch Ratings-London/Dubai: Global sukuk issuance rose 6% in 2019 as the range of issuers and investors broadened, although supply is still concentrated geographically, Fitch Ratings says.. Decisions by major borrowers to tap the market are still a significant determinant of sukuk volumes.. Local currency and longer-dated issuance has been a recent feature of some markets, such as Saudi Arabia.. In January 2020, Qatar Islamic Bank (A/Stable/bbb) issued the first regional Formosa sukuk, in a USD800 million five-year deal.. The importance of sovereigns as major issuers means that geo-political risks will remain relevant to sukuk volumes.. The contents of the press release was provided from an external third party provider..