Global sukuk issuance is expected to rise 50 per cent this year, with companies turning to capital markets as banks reach lending limits, says HSBC.

MrDaoud says about a third of sukuk issuance will come from the Middle East and Africa. As regional companies find banks unwilling to extend their credit, more of them will turn to capital markets, and especially sharia-compliant sukuk instruments. Cash-rich Islamic banks arelapping up issuances, with demand outstripping supply.HSBC, citing Bloomberg data, says global sukuk issuance raised $26.5bn last year, which is expected to rise to $44bn in 2012.

Link: http://www.ft.com/cms/s/0/45ab0896-6843-11e1-a8cc-00144feabdc0.html