Gulf Issuers Skip Sukuk to Tap Demand for Emerging Debt: Islamic Finance
Persian Gulf issuers are choosing to sell non-Islamic bonds instead of sukuk in the borrowing rush that has followed Dubai World’s debt restructuring.
The abundance of liquidity in the non-Islamic debt market, the enforceability of investors’ rights in defaults and the extra cost associated with Islamic bond documentation are steering issuers away from sukuk, Unicorn Investment Bank BSC’s senior vice president of capital markets said.
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