Malaysia issues S$1.1b US dollar sustainability sukuk, world's first by a sovereign
KUALA LUMPUR — Malaysia has issued US$800 million (S$1.1 billion) worth of 10-year trust certificates, billed as the world's first sovereign US dollar sustainability sukuk as the proceeds will be used exclusively for green projects, the finance ministry said on Thursday (April 22).
Malaysian ringgit notes are seen among US dollar bills in this photo illustration taken in Singapore on Aug 24, 2015
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KUALA LUMPUR — Malaysia has issued US$800 million (S$1.1 billion) worth of 10-year trust certificates, billed as the world's first sovereign US dollar sustainability sukuk as the proceeds will be used exclusively for green projects, the finance ministry said on Thursday (April 22).
In addition, the Southeast Asian nation also issued US$500 million 30-year trust certificates, the ministry said in a statement.
Malaysia, which has the largest sukuk market globally, upsized the offering from an initial target size of US$1 billion to US$1.3 billion due to demand as over-subscription hit 6.4 times.
"The strong demand has also resulted in the lowest ever yield and spread for a US-dollar sukuk issuance by Malaysia," the ministry said, with the 10-year and 30-year trust certificates priced at 2.070 per cent and 3.075 per cent respectively.
Proceeds from the sukuk will be used for eligible social and green projects aligned to the United Nation's Sustainable Development Goals Agenda, enabling the country to meet its commitments as a signatory to the Paris Agreement. REUTERS
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