The first French sukuk of €5million was launched in 2011 in the French fast food sector. In 2012, two more sukuk were issued in France for both individual and institutional investors.
The Seychelles and Ghana became the first countries in Africa to issue Islamic bonds in 2006 and 2007. In 2013, Nigeria issued a $62million sukuk. Senegal raised $200million through a sukuk issuance in 2014. South Africa issued a $500million sukuk in September, 2014, which was more than four times subscribed, with an order book of $2.2billion. Even Gambia and Sudan have issued sukuk, however, for small amounts and on a short-term basis.
The first sukuk was issued in Japan by Aeon Credit Services in Malaysia in 2007. Next, in 2010, Nomura Investment Company issued sukuk in US do. In 2012, Toyota Motor Corp. sold $88million of sukuk in two offers via its unit Toyota Capital Malaysia Sdn. due for maturity in May 2015. In 2014, Bank of Tokyo-Mitsubishi UFJ (Malaysia) Bhd set up a $500million multi-currency sukuk program and is also considering the world’s first yen denominated sukuk.
South Korea has taken steps towards entering the global Islamic finance market including tabling legislation, joining various Islamic financial regulatory bodies, preparing for sukuk issuance, and tapping into the London Murabahah Exchange. Several Korean companies including GS Caltex, Korean Air, Hyundai, Samsung and others are exploring the possibility of raising funds from the sukuk market. South Korean Chaebols including Lucky Goldstar, Samsung, Korea Shipping and several others have accessed Islamic commodity Murabahah facilities structured through London.
The People’s Republic of China has been taking the steps necessary to facilitate Islamic finance transactions in China and Hong Kong to prepare China for competition in the sukuk, Islamic funds, and Islamic finance industries. As of January 2015, the government has approved plans to accelerate 300 infrastructure projects valued at 7trillion Yuan. Since 2006, seven sukuk with a value of $5.8billion have been listed on the Hong Kong Stock and two renminbi-denominated sukuk by Khazanah National and Axiata. Riding on the sukuk momentum, after Hong Kong’s debut $1billion sukuk, the government of Hong Kong announced another $1billion sukuk offering. In addition, Ninxia Province plans a $1.5billion Debut Sukuk sale in 2015/2016.
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com