Sharia-compliant debt tools set for a comeback after pandemic
Crisis gives governments, corporates and institutions the chance to raise capital at attractive rates via bonds and sukuk
The coronavirus pandemic has wreaked havoc amid major uncertainties in global markets and everyday life. Governments are still weighing up the economic challenges posed by Covid-19, with many announcing economic stimulus packages.
It provides a chance for governments, corporates and institutions to raise capital with more attractive rates via bonds and sukuk. Investors will also seek such safer-haven assets, thereby enhancing and empowering the sukuk and Islamic capital markets. Sukuk, or sharia-compliant debt instruments, are therefore set for a major comeback once issuers and investors readjust to the post-Covid era...
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