![Page 1: Thomson Reuters Sukuk perceptions & forecast 2015 presentation](https://reader034.vdocuments.us/reader034/viewer/2022042817/559def0d1a28ab53468b4650/html5/thumbnails/1.jpg)
THOMSON REUTERS
SUKUK PERECPTIONS & FORECAST 2015
Growing the Global Footprint of Sukuk Tapping New Sovereign & Corporate Opportunities
In The Islamic Capital Markets
![Page 2: Thomson Reuters Sukuk perceptions & forecast 2015 presentation](https://reader034.vdocuments.us/reader034/viewer/2022042817/559def0d1a28ab53468b4650/html5/thumbnails/2.jpg)
MARKET OVERVIEW
What has been happening in the global Market up to Q3, 2014?
![Page 3: Thomson Reuters Sukuk perceptions & forecast 2015 presentation](https://reader034.vdocuments.us/reader034/viewer/2022042817/559def0d1a28ab53468b4650/html5/thumbnails/3.jpg)
$0.72 $1.02 $0.21 $0.97 $2.57 $3.33 $5.36 $4.98
$11.27
$20.43
$37.63
$20.99
$34.30
$51.24
$84.40
$137.14
$116.93
$99.27
0
20
40
60
80
100
120
140
160
0
100
200
300
400
500
600
700
800
900
1996 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD Q3,
2014
Number of Sukuk $ Billion
Global Aggregate Sukuk Historical Trend (1996-Q3 2014)
Amount Sukuk Issued Number of Sukuk
2014 Global Sukuk Market bounces back from 2013 low with almost $100
billion sukuk issued in the first nine months
![Page 4: Thomson Reuters Sukuk perceptions & forecast 2015 presentation](https://reader034.vdocuments.us/reader034/viewer/2022042817/559def0d1a28ab53468b4650/html5/thumbnails/4.jpg)
![Page 5: Thomson Reuters Sukuk perceptions & forecast 2015 presentation](https://reader034.vdocuments.us/reader034/viewer/2022042817/559def0d1a28ab53468b4650/html5/thumbnails/5.jpg)
2014, market mix is expanding to include more non-OIC countries from
both Sovereigns and Corporates
![Page 6: Thomson Reuters Sukuk perceptions & forecast 2015 presentation](https://reader034.vdocuments.us/reader034/viewer/2022042817/559def0d1a28ab53468b4650/html5/thumbnails/6.jpg)
19 jurisdictions tapped the sukuk market in 2014 with UK, Hong Kong,
Luxembourg, Senegal and South Africa newcomers…
![Page 7: Thomson Reuters Sukuk perceptions & forecast 2015 presentation](https://reader034.vdocuments.us/reader034/viewer/2022042817/559def0d1a28ab53468b4650/html5/thumbnails/7.jpg)
The Malaysian Ringgit continues to dominate the sukuk market with GCC
currencies rising and European currencies entering the market
![Page 8: Thomson Reuters Sukuk perceptions & forecast 2015 presentation](https://reader034.vdocuments.us/reader034/viewer/2022042817/559def0d1a28ab53468b4650/html5/thumbnails/8.jpg)
Up to Q3, 2014, total sovereign sukuk issuance was $63.05 billion compared
to $13.61 billion quasi-sovereign and $22.60 billion corporate issues…
![Page 9: Thomson Reuters Sukuk perceptions & forecast 2015 presentation](https://reader034.vdocuments.us/reader034/viewer/2022042817/559def0d1a28ab53468b4650/html5/thumbnails/9.jpg)
Financial institutions continued to lead all corporate issuances, followed by
power and utilities, construction, real estate & transport …
![Page 10: Thomson Reuters Sukuk perceptions & forecast 2015 presentation](https://reader034.vdocuments.us/reader034/viewer/2022042817/559def0d1a28ab53468b4650/html5/thumbnails/10.jpg)
Of the 224 murabahah issuances, only 2 were issued outside Malaysia….
![Page 11: Thomson Reuters Sukuk perceptions & forecast 2015 presentation](https://reader034.vdocuments.us/reader034/viewer/2022042817/559def0d1a28ab53468b4650/html5/thumbnails/11.jpg)
On the other hand, the market is moving cautiously in terms of adopting
new structures…
![Page 12: Thomson Reuters Sukuk perceptions & forecast 2015 presentation](https://reader034.vdocuments.us/reader034/viewer/2022042817/559def0d1a28ab53468b4650/html5/thumbnails/12.jpg)
Based on survey findings investors & lead arrangers are moving towards
mid-term sukuk..which may affect the demand for longer term sukuk
![Page 13: Thomson Reuters Sukuk perceptions & forecast 2015 presentation](https://reader034.vdocuments.us/reader034/viewer/2022042817/559def0d1a28ab53468b4650/html5/thumbnails/13.jpg)
MARKET OUTLOOK
Supply & Demand Model Assumptions
![Page 14: Thomson Reuters Sukuk perceptions & forecast 2015 presentation](https://reader034.vdocuments.us/reader034/viewer/2022042817/559def0d1a28ab53468b4650/html5/thumbnails/14.jpg)
7%
19%
22%
25%
27%
0% 5% 10% 15% 20% 25% 30%
Rare Paper/issuer
Reasonable credit risk
Mandate to only invest in Islamic instruments
Diversification
Attractive Yield
What are your reasons for investing in sukuk?
BUY SIDE
3%
8%
20%
33%
38%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Restructure debt
Cheaper funding and better
pricing
Refinance debt
Diversify source of funding
Business Expansion
What is your primary reason to issue sukuk?
SELL SIDE
On the supply side, conventional issuers are attracted by the high demand for
sukuk while higher yield attracts non-Shariah-sensitive investors
![Page 15: Thomson Reuters Sukuk perceptions & forecast 2015 presentation](https://reader034.vdocuments.us/reader034/viewer/2022042817/559def0d1a28ab53468b4650/html5/thumbnails/15.jpg)
Expectation for full year 2014 can be attributed to the strong pipeline for
Q3/Q4 2014 and early 2015 from both sovereigns and blue chip corporates.
2014
2015
![Page 16: Thomson Reuters Sukuk perceptions & forecast 2015 presentation](https://reader034.vdocuments.us/reader034/viewer/2022042817/559def0d1a28ab53468b4650/html5/thumbnails/16.jpg)
On the demand side, according to IFDI 2014, total global Islamic Finance
assets in 2013 reached $1.658 trillion covering a universe of 92 countries
![Page 17: Thomson Reuters Sukuk perceptions & forecast 2015 presentation](https://reader034.vdocuments.us/reader034/viewer/2022042817/559def0d1a28ab53468b4650/html5/thumbnails/17.jpg)
0
200
400
600
800
1000
1200
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Sukuk Demand & Supply Levels (2014 – 2020)
Total Global Sukuk Matured Total Global Sukuk Issued Total Outstanding Global Sukuk (Previous Year)
Total Outstanding Global Sukuk Total Sukuk Demand
Supply & Demand Gap: Despite the postive come back for
sukuk in 2014 it is still below 2012 levels. Supply & Demand
Gap has increased to reach $236 in 2014 due to lower
expected issuance driven by economies recovery , higher
interest rates and feds bonds repurchase However, it is
expected to drop in 2018 onwards due to steady market
issuance
2020: Easy road for sukuk with issuance surpassing $200 billion and demand
reaching almost a trillion
![Page 18: Thomson Reuters Sukuk perceptions & forecast 2015 presentation](https://reader034.vdocuments.us/reader034/viewer/2022042817/559def0d1a28ab53468b4650/html5/thumbnails/18.jpg)
Thank you
Any Questions