Sukuk sales to reach US$44 billion in 2012 as demand outstrips supply, says HSBC
According to HSBC Holdings Plc, sales of Islamic bonds may rise to US$44 billion this year as request outstrips supply and as Asian and Middle East investors tap the market complying with Islamic banking rulings. Companies and governments are tapping the Islamic bond market as borrowing costs decline amid rising investor demand.
Emirates Islamic Bank PJSC and First Gulf Bank PJSC of Abu Dhabi raised US$500 million each from sukuk sales.
Shariah-compliant bonds won 7.2% last year, according to the HSBC/Nasdaq Dubai US Dollar Sukuk Index, while debt in developing markets rose 8.5%, shows JPMorgan Chase & Co.’s EMBI Global Composite Index .