Islamic bonds go mainstream

|By:, SA News Editor

The sukuk market is now large enough for the global banks which are eager to tap more Middle Eastern money, and Goldman Sachs (NYSE:GS) next week in Qatar will begin a road show as it looks to raise at least $500M.

Should the Goldman deal go through, it would become just the 2nd non-Islamic bank to sell sukuk. The first was HSBC with a $500M deal in 2011. Other banks - SocGen and Bank of Tokyo-Mitsubishi UFJ - are prepping offerings as well.

New issues of sukuk this year total $85.9M and 456 deals, vs. $74.9B and 558 deals a year ago.