Kuveyt Turk (the Turkish subsidiary of Kuwait Finance House) just issued a Sukuk - the first in Turkey. Fitch Ratings accorded the 100 million USD issue a BBB- (same rating as Kuveyt Turk), whereas Turkey has the same country ratings as Indonesia.
KT probably has roughly 4 billion USD in assets, an Islamic Bank license in DIFC Dubai and Germany and has a rep office in Kazakhstan. It is furthermore financially backed up by "giant" Kuwait Finance House KFH.
Most Indonesian Syariah banks have no international standing and track record yet and have poor international backing. Furthermore they often only have approx 200 million USD in assets and therefor are relative dwarfs in international finance.
All elements that flaw possible ratings. Worse ratings are difficult to place amongst international investors.
Does this mean that corporate Sukuk in Indonesia will be restricted to the big Syariah players and the big Indonesian corporates only ? Or do you see more possibilities ? The domestic financial market is still tight on liquidity ...
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