Islamic Bond Issuance: What Sovereign Debt Managers Need to Know
IMF Policy Discussion Papers, July 1, 2008
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Bibliographic details
- Authors: Amadou N Sy, Peter J Kunzel, Paul S. Mills, Andreas Jobst
- Published: July 1, 2008
- Series: IMF Policy Discussion Papers
- DOI: https://doi.org/10.5089/9781451946024.003
Summary
- Recent years have witnessed a surge in the issuance of Islamic capital market securities (sukuk) by corporates and public sector entities amid growing demand for alternative investments.
- As the sukuk market continues to develop, new challenges and opportunities for sovereign debt managers and capital market development arise.
- This paper reviews the key developments in the sukuk market and informs the debate about challenges and opportunities going forward.
- Disclaimer: This Policy Dicussion Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
Key developments and findings
- Surge in sukuk issuance by corporates and public sector entities driven by growing demand for alternative investments.
- Development of the sukuk market creates new challenges and opportunities for:
- Sovereign debt managers.
- Capital market development.
Implications for sovereign debt managers and capital market development
- The evolution of sukuk markets affects sovereign debt management strategies and market infrastructure (implied by the paper’s focus on informing the debate about challenges and opportunities).
- Sovereign debt managers need to consider:
- Market development dynamics for Islamic capital market securities.
- Institutional and regulatory accommodations for sukuk issuance and investor demand.
- Integration of sukuk instruments into existing debt management frameworks and investor outreach.