The Role of Sukuk in Islamic Capital Markets
58
The GoM’s concerted efforts to include Islamic banking and Islamic finance as policy tools in its
economic agenda have been the driving force behind the country’s rise in the mainstream
financial markets. The successful inclusion of Islamic finance lends considerable strength
towards building a sustainable sukuk pipeline, not only in meeting the government’s
budgetary requirements but also by quasi-government entities and corporates. Malaysia’s
financial institutions and infrastructure sector are believed to remain the lynchpins for future
large sukuk transactions due to their financing needs, which are better matched by domestic
institutional investors’ appetite for long-term assets.
Apart from Malaysia, other Asian countries particularly Indonesia and Pakistan are steadily
increasing their volume of issuances. Table 3.10 gives an overview of selected sukuk issued by
some Asian countries.
Table 3.10: A Snapshot of Selected Sukuk Issuances by Asian Countries
Malaysia Indonesia Pakistan Brunei Japan
Sukuk issuer Axiata SPV2
Bhd
Tiga Pilar
Sejahtera Food
Tbk PT
Neelum Jhelum
Hydropower
Company
(Private)
Limited
Brunei
Darussalam
April 2017
Bank of Tokyo-
Mitsubishi UFJ
(Malaysia)
Berhad
(“BTMUM”)
Originator/
Obligor
Axiata Group
Berhad
Tiga Pilar
Sejahtera Food
Tbk PT
Neelum-Jhelum
Hydropower
Company
(NJHPC)
Government of
Brunei
The Bank of
Tokyo-
Mitsubishi (UFJ)
Currency
format
US Dollar Indonesian
Rupiah
Pakistani Rupee Brunei Dollar Japanese Yen
Structure Wakalah Ijarah Musharakah Ijarah Wakalah
Sukuk ratings Baa2 (Moody’s),
Baa2 (S&P) –
International
rating
idA (Pefindo)-
Domestic rating
AAA (JCR-VIS) -
Domestic rating
AAA (RAM2) AAA (RAM)
Sukuk assets Airtime
vouchers
n.a n.a n.a Shariah-
compliant asset
Purpose To improve its
capital
efficiency
To refinance its
outstanding
debt and
finance its rice
mill
construction
Finance
hydropower
project
To diversify
their portfolio
To diversify
their funding
sources
Issue date 13 November
2015
19 July 2016 21 April 2016 28 April 2016 25 September
2014
Tenure 5 years 5 years 10 years 1 year 10 years
Maturity 13 November
2020
19 July 2021 21 April 2026 13 April 2017 25 September
2024
Amount USD500 million IDR1.5 trillion PKR100 billion BND100 million JPY2.5 billion
Period
distribution
3.466% 10.0-10.75% 0, 113 basis
points over the
6-month KIBOR
1.03% n.a
2 RAM’s country rating for Brunei, as of 13 Dec 2016