Malaysia's sustainability sukuk oversubscribed by 6.4 times

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  • 22 Apr 2021
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Malaysia's sustainability sukuk oversubscribed by 6.4 times, allocation well spread globally

The Government has successfully priced the world’s first sovereign US Dollar Sustainability Sukuk, via the issuance of US$800 million 10-year Trust Certificates and also issued US$500 million 30-year Trust Certificates with the allocation well spread globally from Asia to the United States. Investors’ confidence was clearly reflected in the offering being oversubscribed by 6.4 times. Due to the overwhelming demand the Government decided to upsize the size to US$1.3 billion from US$1.0 billion initially, the Ministry of Finance (MoF) said in a statement here, today. It said both tranches have been assigned a rating of A3 by Moody's Investors Service and A- by S&P Global Ratings. The strong demand has also resulted in the lowest ever yield and spread for a US-dollar sukuk issuance by Malaysia, with the 10-year and 30-year Trust Certificates priced at 2.07 per cent [T + 50 basis points] and 3.075 per cent [T + 80 basis points], respectively. More importantly, this demonstrates the market’s confidence in Malaysia’s economic recovery and growth prospects, despite a challenging past year due to the COVID-19 pandemic.

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