RegionsMiddle EastBloomberg Launches Corporate Sukuk Index for Islamic Finance

Bloomberg Launches Corporate Sukuk Index for Islamic Finance

Bloomberg has launched a Malaysian ringgit (MYR) corporate sukuk index, which will track and measure the performance of the most liquid and credit-worthy Islamic corporate bonds in Malaysia.

The group said that the launch of the Bloomberg Association of Islamic Banking Institutions Malaysia (AIBIM) Bursa Malaysia corporate sukuk index demonstrated its further commitment to the Islamic finance market. The new index, which was announced at the third Global Islamic Finance Forum (GIFF) in Kuala Lumpur, will serve as a benchmark for investors of ringgit-denominated Islamic bonds in Malaysia, the world’s biggest sukuk market. 

The corporate sukuk index will track and measure the performance of the most liquid and credit-worthy Islamic corporate bonds in Malaysia. Bloomberg will calculate the index daily, with rates and prices contributed by member banks of AIBIM.

“Bloomberg has been investing in Islamic finance globally and this announcement reaffirms our commitment to Malaysia’s development as a global Islamic financial centre,” said Kamel Hajri, Bloomberg’s business manager for Islamic finance. “This collaboration means we now have a complete portfolio of Islamic finance indices and tools for Malaysia. We look forward to expanding our joint efforts with key industry players to further enhance market transparency and liquidity, with the goal of fulfilling investor demand for more robust Shariah-compliant solutions.”

Dato’ Mohd Redza Shah Abdul Wahid, president of AIBIM, said: “With the diversification of the Islamic finance market, there is a growing need for access to accurate, timely and comprehensive data. Strategic collaboration to develop localised financial products will help stimulate the long-term growth, competitiveness and sustainability of Islamic finance services.”

This is the third sukuk index that Bloomberg, in collaboration with Bank Negara, AIBIM and Bursa Malaysia, has developed for the Malaysian market. In 2011, Bloomberg launched the AIBIM Bursa Malaysia sovereign index (BMSSITR) and the Malaysia Sukuk Ex-MYR index (BMSSUTR), as part of its Islamic finance platform (ISLM), a broad set of data, analytics and news dedicated to Shariah-compliant products and services.

Related Articles

What can banks learn from the TSB IT disaster?

Banking Risk Management What can banks learn from the TSB IT disaster?

1w Mark Hipperson
Green finance is seeing a 'fundamental shift': SEB Bank

Banking Green finance is seeing a 'fundamental shift': SEB Bank

2w Victoria Beckett
Australia's non-bank lending boom

Open Banking Australia's non-bank lending boom

3w Paul Mitchel
PSD2 - banking on a game changer in ecommerce

Open Banking PSD2 - banking on a game changer in ecommerce

3w Rachel Gauci
How thinking like a fintech can maximize Open Banking opportunity

Banking How thinking like a fintech can maximize Open Banking opportunity

4w Nick White
Open Banking - a brave new world of opportunities and challenges

Open Banking Open Banking - a brave new world of opportunities and challenges

2m Yamini Kona
What the HSBC news means for the SWIFT vs Ripple debate

Banking What the HSBC news means for the SWIFT vs Ripple debate

2m David Beach
“Banks must prepare for API unknowns”

Open Banking “Banks must prepare for API unknowns”

2m Michael McCaw