KUWAIT, Jan 13 (KUNA) -- Global sukuk issued in December, last year, reached USD 5 billion, a report by a Kuwaiti bank said on Friday, marking a record issuance of USD 85 billion in 2011 - a 90.2 pct increase from 2010.
Sukuk is the term used for bonds issued according to Islamic Sharia law.
Sovereign issuance was the main catalyst for the sukuk market last year, where it reached USD 59 billion, while companies' issuance reached USD 19 billion, said Kuwait Finance House Research in its monthly report.
The global sukuk secondary market also reached an all-time high of USD 178.2 billion by the year-end, a 24 pct increase from the USD 143.3 billion outstanding at the end of 2010.
On a monthly basis, issuances dropped below the yearly average in what was a quiet month for issuances outside of Malaysia. However, the primary market still recorded a year-on-year increase of 0.7 pct for December, continuing the positive momentum into the New Year.
Among the notable issuances for the month were the Horizon sukuk, issued by an SPV on behalf of Gulf International Bank. The sukuk was issued out of the Cayman Islands, raising USD 300 million from international investors. The largest issuance for the month was the third issuance of the year for Pakistan Domestic Sukuk Company Limited which issues on behalf of the government.
The USD 781.1-million-sukuk Ijarah was structured according to a three-year tenure.
The vast majority of primary market issuances were domiciled in Malaysia, with only one sukuk each arising from Pakistan and Bahrain while Gambia saw its largest issuance yet of USD 18.9 million for the month. The market was driven by sovereign issuances amounting to USD 4 billion while corporate issuances were at a three-month low. (end) fnk.sd KUNA 131723 Jan 12NNNN