The green Sukuk market will benefit from buoyant demand for green paper in general as institutional investors seek to integrate sustainability into their asset allocation and risk management practises.
Moody’s Investor Services expects strong growth in the Islamic finance sector, reflecting the increasing demand for Shari’ah-compliant financial instruments.
The rating agency stated that although Sukuk can be relatively complex compared with bonds, familiarity as well as understanding of the instrument is increasing and there are no barriers to investors, both Islamic and conventional to investing in these issuances.
The growth in the Islamic finance sector is expected to translate into stronger prospects for green Sukuk issuance by sovereigns and financial institutions.
Source Islamic Business&Finance