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.