Sukuk Weekly Summary and Secondary Market update – 29 May 2014

Domestic Sukuk market is gathering pace in Saudi Arabia with recent announcements from Saudi Telecom and Saudi based Al Hokair to issue sukuk.

Elsewhere the Sovereign space in South East Asia showed some new developments, with Indonesia mandating HSBC, Standard Chartered and CIMB Group Holdings Bhd to arrange a sovereign sukuk issue of up to US1.5billion, as well as a comment from the Philippines Finance minister indicated it to was looking at the sukuk market for funding.

The Bloomberg-Malaysia Sukuk Ex-MYR Index, which tracks 43 global corporate and sovereign notes from Asia and the Middle East, climbed 0.8 percent in May to an unprecedented 116.19, taking the advance this year to 3.1 percent and exceeding 2013’s 0.8 percent increase.

Secondary market prices were slightly up on the week: