Following a period of inactivity, excitement is beginning to stir again in the sovereign Sukuk space as yet another country announces its intentions to enter the Islamic capital market, while familiar names progress steadily in their sovereign Sukuk journey.
New entry
Inspired by the encouraging reception of the UK Sukuk, Malta recently expressed its hopes in sending a signal to the world that the republic is open to Shariah compliant financial instruments and believes that a small Sukuk issuance could be the impetus to begin such a narrative. The European island has in recent years demonstrated keen interest in attracting Shariah wealth by hosting discussions among industry players on how best to move Islamic finance within the country’s financial regulatory framework as well as establishing Shariah compliant finance as an area for potential joint ventures between businesses in Dubai and Malta. The country, led by FinanceMalta, is also set to publish a sector guide on Islamic finance in January next year. These efforts underline market reports that prime minister Dr Joseph Muscat is expected to make an official announcement on a Maltese sovereign Sukuk issuance in the weeks to come.
Upcoming roadshows
Luxembourg has also confirmed in an emailed statement that it will be meeting investors in the UK, UAE, Malaysia, Saudi Arabia and Qatar to promote its much-anticipated debut Sukuk, beginning the end of next month.
Indonesia too is set to conduct investor meetings for its international US$1 billion dollar-denominated Sukuk in the next few weeks, according to IdealRatings. The rating agency also disclosed in its website that the emirate of Sharjah is expected to debut its benchmark maiden sovereign Islamic debt in the first week of September; around the same time as expected for the debut government Sukuk issuances of Tunisia and Pakistan. — VT