Muhyiddin: Oversubscribed sukuk a sign of investor confidence in Malaysia

On Wednesday, the government announced that it successfully placed two dollar-denominated sukuk issuances, a 10-year bond for US$800 million and another 30-year issue for US$500 million. – File photo

KUALA LUMPUR (April 24): Malaysia’s sustainability sukuk issuance which was oversubscribed by 6.4 times recently proved that the country is on the right track in managing its economy towards a more sustainable and stable growth, said Prime Minister Tan Sri Muhyiddin Yassin.

“This reflects the confidence of investors in the country and market on the recovery and Malaysia’s economic growth prospects even though the government is facing tough challenges due to the COVID-19 pandemic over the last one year,” he said.

Last Thursday, the government successfully priced the world’s first sovereign US dollar Sustainability Sukuk via the issuance of US$800 million 10-year trust certificates and US$500 million 30-year trust certificates for comprehensive distribution stretching from Asia to the United States.

“The Malaysian government’s success in issuing the world’s first sovereign Sustainability Sukuk in US dollar worth US$1.3 billion is a proud achievement for the country,” he said in a press statement today.

Through the oversubscription of 6.4 times, the original issuance size was increased from US$1.0 billion to US$1.3 billion. Based on the encouraging demand, the government had successfully fixed a competitive price for the Sustainability Sukuk.

“I would like to thank the Ministry of Finance and the agencies involved such as Bank Negara Malaysia, which have cooperated in the successful marketing and issuance of a unique and excellent Sustainability Sukuk in terms of an innovative Islamic finance instrument.”

Muhyiddian said he was confident this would further enhance Malaysia’s position as a leader in the global Islamic finance sector.

“InsyaAllah, the Sustainability Sukuk will continue to put us on a development foundation that is more sustainable, stable, resilient, and competitive in line with the Shared Prosperity Vision 2030.” – Bernama

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