| KUALA LUMPUR,Sept 13
KUALA LUMPUR,Sept 13 Islamic bonds accounted for
nearly half of total issuances in Malaysia in the first half of
the year, compared with 35 percent over the same period last
year, data from the Securities Commission (SC) showed,
reflecting the growing importance of sukuk in the country's
Sovereign and corporate sukuk in the six months to June
increased to 420.8 billion ringgit ($136.96 billion) from 315.6
billion ringgit ($102.72 billion) over the same period last
The pace of growth suggests that the country is on course to
reach its target of one trillion ringgit of sukuk bond issuances
by 2020 as part of its capital markets plan for the 2010-2020
"Malaysia is now the world leader in sukuk issuance.
Political will, recognition of beneficial ownership, tax
incentives, and a rising investor base have all supported the
country's continued growth trajectory," ratings services agency
Standard & Poor said in a report this week.
The agency said the growing popularity of sukuk was due to
the decreasing number of conventional loans and their shortened
tenures. Companies are also considering other options for
financing, and Islamic instruments are expected to become a key
funding source for the Gulf Cooperation Council region and Asia.
S&P said the G CC issued $19 billion in sukuk as of July, the
same amount for the whole of 2011. Asia issued $57.9 billion in
the same period, compared to $64.9 billion last year.
Malaysia accounted for two-thirds or $165.2 billion of
global outstanding sukuk as at June. These included PLUS
Berhad's 30 billion ringgit sukuk and issuances by
government-linked firms, Khazanah Nasional Bhd and
($1 = 3.0725 Malaysian ringgits)
(Reporting By Al-Zaquan Amer Hamzah; Editing by Sanjeev