Sukuks rise as pillars of global finance

Considered the world’s largest Islamic finance hub, Malaysia has been proactive in extending the reach of Islamic bonds beyond its shores.

Since the beginning of 2015, there have been two landmark Malaysian Islamic bonds, also known as sukuk a $5 billion multi-tranche deal from the Southeast Asian nation’s state-owned oil company Petronas and a $1.5 billion dual-tranche Islamic bond from the Government of Malaysia.

These instruments, which comply with Islam’s ban on interest and pay returns derived from physical assets, were not only sold in the Reg S market sales made outside the US, but also in the Rule 144A market instruments sold to onshore...