Sukuk Case Study

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Sukuk have become increasingly popular as one of the long-term financial instrument as the vital vehicles for resource mobilizations for raising funds that feasible and viable shariah-compliant whether in the public or private sector. The first corporate sukuk issuance in Malaysia was Shell MDS Sdn. Bhd., a non-Islamic corporation in 1990 and in 2002, the government issued the first global sovereign sukuk, raising US$600 million. Due to the consistent growth in the issuance of sukuk, Malaysia has become the world’s largest sukuk issuer with more than 60% of outstanding global sukuk issued and local currency sukuk issued 35.5% of outstanding total bond market at the end of June 2010. This is attributable to the various factors including the…show more content…
According to Chief executive officer and global head, consumer banking, Standard Chartered Saadiq Wasif Saifi said that this year expected to be good for Malaysian sukuk industry driven by the strength of the economy. He also told selected media members at the recent Standard Chartered Malaysia media, there is already strong interest in ringgit sukuk issuance from a global perspective. This is evident from the recent issuance by a Turkish institution which represents a major raised by an overseas investor in a single sukuk issuance. This is the first issuance by a Turkish issuer of ringgit denominated sukuk in the Malaysian debt capital market by a wholly-owned asset leasing company, TF Varlik Kiralama. The company recently issued a RM800 million sukuk under its inaugural RM3 billion Sukuk Murabahah Programme. Wasim added the first two quarters looked promising for the sukuk industry, buoyed by a robust gross domestic product which posted 6.2% growth in the…show more content…
Sukuk already start to rose slowly back in 2012 when the main Malaysia airline, MAS has proposed to launch a sukuk programme of up to RM2.5 billion to shore up its capital base as one of three main pillars of its funding plan to address working capital requirements. The second pillar consists of a proposal to lease MAS’ new aircraft from an external entity and the third pillar is the commercial funding of aircraft capital expenditure (capex’). It proof that sukuk had started to make their way starting long ago and this year become the good year for sukuk industry to expand their product when lot of company in Malaysia implement the sukuk in their financing

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