| [Channel NewsAsia] - The global Islamic bonds or sukuk issuance market for the 1st half of 2010 has doubled on-year to US$20 billion. In 2007, sukuk volume was about US$24 billion in the 1st half, a record year. Industry watcher believed that sukuk volumes will fare even better in 2nd half of 2010 as it will continue to be the main driver of growth. More investors in Asia are now turning into Islamic finance as an additional source of funding. Recently S$1.5 billion of sukuk was issued in Singapore by Khazanah Nasional, the largest foreign issuer in SGD to date. In Indonesia, usage of Islamic bonds to raise money is also gaining popularity due to high demand for corporate borrowings. Indonesia has more room to grow the sector. MAS reported that the sector has been growing steadily in recent years with greater interest from high-quality borrowers and issuer such as IDB, Khazanah and Olam. The global Islamic finance sector is expected to cross the US$1 trillion mark in total assets this year. |
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