Japanese institutions are showing increasing interest in Islamic financing to diversify capital raising avenues.
Tokyo, Japan, September 26, 2011 — Japanese institutions are showing increasing interest in Islamic financing to diversify capital raising avenues.
As the global financial markets recover from the financial crisis, Islamic finance is appealing as an alternative to conventional financial instruments. Sukuk share many features of conventional bonds, such as standardized transactions structures and documents, and similar trading, listing and ratings characteristics.
Issuers do not need to be Islamic entities, nor is the market restricted to the Middle East. Indeed there is anecdotal evidence which suggests that most sales of sukuk in 2012 will be generated from Asia. Malaysia continues to dominate the sukuk market today with an 80% market share in the global Islamic bonds market, but 2010 also saw other sovereigns such as Indonesia, with its successful Sukuk treble, make their way into the market. Singapore also made a relatively small but significant debut.
Although a relatively latecomer to Islamic finance in Asia, Japan is following the stated ambitions of its neighbouring countries, such as Hong Kong and Singapore, in trying to establish itself as an international Islamic capital market hub.
“Sukuk can help Japanese firms diversify their financial resources, and expose them to Middle Eastern and Southeast Asian markets. If they choose to use it, sukuk can offer Japanese companies a new fund-raising avenue through which they can leverage the pool of Islamic capital, said Yukio Tanaka, Head of Global Markets at Tokyo Bay Traders.
Tokyo Bay Traders has had an interest in Islamic finance for quite some time. The company provides a wide variety of products and services to Japanese institutional investors including trade finance, depositary receipts, custody and fund administration, corporate trust, foreign exchange and other treasury services.
Its clients include multinational corporations, financial institutions and other entities that access the global debt capital markets. The corporate trust business utilizes its global footprint and expertise to deliver a full range of issuer and related investor services and develop customized and market-driven solutions.
About Tokyo Bay Traders
Tokyo Bay Traders is a financial services company focused on helping clients manage and service their financial ambitions, providing fast, reliable advice and execution on over 50 markets. Tokyo Bay Traders offers investment management and investment services through a fully trained, client focused team.For more information please visit www.tokyobaytraders.com. nsparency analytics, reporting, and final asset disposition and distribution activitie.
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Miki Miyaki
Tokyo Bay Traders
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