Malaysia '09 corp sharia bond sales seen at $4bln-CIMB

KUALA LUMPUR, Jan 23 (Reuters) - New issuance of sharia corporate bonds in Malaysia will total about $4 billion this year, with Europe and Middle East issuers keen to tap the market, the world's top arranger of Islamic debt said on Friday.

Malaysia, one of the world's top Islamic bond markets, saw a 78 percent drop in issuance last year to $5.86 billion, according to Islamic Finance Information Service (IFIS).

"Issuers from other parts of the world are now trying to find new markets where they can actually issue and the ringgit sukuk market seems to be a very attractive market for them to tap," Badlisyah Abdul Ghani, chief executive of Malaysia's CIMB Islamic Bank told Reuters.

CIMB Islamic is part of CIMB Group, which is listed on the Malaysian stock exchange through Bumiputra-Commerce Holdings (BUCM.KL).


CIMB Islamic Bank Berhad (CIMB Islamic) is the global Islamic banking and finance arm of CIMB Group. It offers innovative and comprehensive Shariah-compliant financial solutions in the spheres of investment banking, consumer banking, asset management, takaful, private banking and wealth management.

CIMB Islamic’s products and operations are managed in strict compliance with Shariah principles under the guidance of the CIMB Islamic Shariah Committee, which comprises the world’s leading Islamic scholars.

CIMB Islamic is recognised as a pioneer in Islamic financial markets, having advised on the world’s first shariah-compliant exchangeable bond and the largest sovereign sukuk issue globally. It has garnered numerous awards such as Best Islamic Bank in Asia and Best Sukuk House in 2008 from Euromoney and Global Islamic Investment Bank for 2006 and 2007 from the Banker magazine.

Bumper oil earnings in the Gulf and rising demand for ethical investments have boosted the $1 trillion Islamic finance industry, but sharia debt issuance has shrunk in the past year due to the the global credit crisis.

Sales of new Islamic bonds fell two-thirds to a three-year low of $15.77 billion in 2008, IFIS estimates.