Islamic Debt Market in June 2012

In June Islamic primary market continued its moderate growth against April and May. 61 issues have been placed in the total volume of $11.1 billion.

In Q2 placement volume was $25.9 billion proving less than Q1 results, when the figure exceeded $43.0 billion.

Q1 2012 was on the whole outstanding since $69.0 billion were borrowed in sukuk market, which makes up 84.0% of the volume placed during 2011.

Malaysian ringgit remains the key placement currency and, interestingly enough, not only in Malaysia. For instance, Kuwaiti Gulf Investment Corporation placed $100 million sukuk in the Malaysian market.

Sukuk market will soon be for the first time entered by CIS issuers. Thus, the Development bank of Kazakhstan – a quasi-state bank implementing infrastructure projects in Kazakhstan – is planning a sukuk placement in the amount of 1.5 billion ringgits (about $475 million).