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2004 Islamic Bond Market Report
ISI Emerging
Market's Islamic Finance Information Service (IFIS)
reports that Islamic
Bond Issuance grew over 300% in 2004
Ms.
Rakiya Sanusi,
Islamic Finance Information Service (IFIS)
Posted, Apr 15, 2005
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IFIS,
the Islamic Finance information service
released benchmark figures on tallying progress
in the Islamic Finance Industry in 2004
and year to date 2005.
According
to figures compiled by IFIS analysts, the
2004 Islamic bond market chartered a positive
growth from US$ 1.9 billion in 2003 to over
US$6.7 billion in 2004.
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Islamic
Bond Market 1st Quarter 2005
IFIS
analysts believe 2005 is set to chart similar
growth. The total market size for Corporate and
Sovereign issues for 1st Quarter 2005 year to
date is US$1.08 billion. Taking into consideration
projected deals for the rest of the year, it is
anticipated the market will surpass the 2004 total
Sukuk issuance. There are currently 12 Sukuk that
have been issued to date.
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Top
Islamic Bond (Sukuk) Issues - Q1 2005
| Issuer |
Manager |
Country |
Amount
$US m |
| Announced |
|
| 1 |
Jimmy
Energy Ventures
|
AmMerchant
Bank Berhad, RHB Sakura Merchant Bhd,
MIMB, Bank Muamalat |
Malaysia
|
1,3167
|
| 2 |
Syarikat
Bekalan Air Selangor Sdn Bhd (Syabas)
|
NA |
Malaysia
|
1295
|
| 3 |
Islamic
Development Bank
|
HSBC
Amanah, Dubai Islamic Bank, CIMB Bhd,
Deutsche Bank |
Saudi
Arabia
|
1,000
|
|
Issued (Corporate) |
|
| 1 |
Durrat
Sukuk Company BSC
|
Kuwait
Finance House, Liquidity Management
Center |
Bahrain
|
152.50
|
| 2 |
Peremba
Jaya Holdings Sdn Bhd
|
MIMB,
Affin Bank Berhad |
Malaysia
|
52.63
|
| 3 |
Ample
Zone Berhad
|
MIMB |
Malaysia
|
39.50
|
|
Issued
(Sovereign) |
|
| 1 |
Government
of Pakistan
|
Citigroup,
HSBC Amanah |
Pakistan
|
600
|
| 2 |
Government
of Bahrain
|
Bahrain
Monetary Agency (BMA) |
Bahrain
|
79.50
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Source: IFIS-ISI
Emerging Markets.
For complete Sukuk table, goto
http://www.securities.com/ifis
(subscripion needed)
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The
Government of Pakistan headlined Asian Sovereign
bond issuance for the 1st quarter 2005, with a
US$600 million 5 year Sukuk. Backed by the Government
of Pakistan, this issue attracted investors from
Europe, Asia and the Gulf.
The
year's second sovereign issue - backed by the
Government of Bahrain - was a US$79.5 Million
Sukuk which was oversubscribed by 50%.
Issued
Corporate Bonds
The top three Corporate Sukuk issuers year to
date are Durrat Sukuk (Bahrain), Prembajaya Holdings
(Malaysia) and Ample Zone (Malaysia).
Lead
Managers
The
top rankings for Lead Managers to date go to Citigroup
and HSBC Amanah. Bahrain Monetary Agency, placed
second, Kuwait Finance House and Liquidity Management
Centre placed third.
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Top
Islamic Bond Managers - 1st Quarter
2005
|
|
|
Manager
|
Amount
($US millions)
|
Issue
|
|
1
|
Citigroup |
300.00
|
1
|
|
1
|
HSBC
Amanah |
300.00
|
1
|
|
2
|
Bahrain
Monetary Agency |
79.50
|
1
|
|
3
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Kuwait
Finance House |
76.25
|
1
|
|
3
|
Liquidity
Management Center |
76.25
|
1
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Source: IFIS-ISI
Emerging Markets.
For complete Sukuk table, goto http://www.securities.com/ifis
(subscripion needed)
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1st
quarter 2005 figures for Announced Sukuks tallied
by IFIS show over US$5.0 billion in deals in the
pipeline, with issuers from the Gulf, Malaysia,
Indonesia and the UK leading the charge.
In
the Malaysian markets, the most prominent participant
is Jimah Energy Ventures, which plans to issue
over US$1.3 billion in Islamic bonds this year,
according to sources from Jimah Energy Ventures.
The
Islamic Development Bank, a Saudi Arabia based
supra-national entity, plans over US$1 billion
bonds next quarter 2005.
Global
Managers with significant activity forecasted
include Commerce International Merchant Bank (CIMB),
HSBC Amanah, Dubai Islamic Bank, Deutsche Bank,
and Emirates Islamic Bank.
Non-Islamic
issuers continue to show an interest in this niche
market. Volaw Trust Jersey, UK have indicated
they may be issuing another sukuk in 2005, with
the underlying asset in the commercial sector.
This would be a follow up to their award winning
February 2004 effort which raised US$26.13 Million.
It was the first securitisation exercise using
a commercial fleet of vehicles as security.
Entities
like the Bahrain Financial Harbour will be issuing
a sukuk to finance its Seafront property development.
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Emerging Market's, IFIS (Islamic Finance Information
Service) is an information service designed to
meet the unique requirements of Sharia compliant
finance industry participants. IFIS is a single
stop resource for investigating market opportunities
in the world of Islamic finance.
Full
details for all deals available at http://ifis.securities.com
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