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Thursday, July 18, 2024

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Malaysia issues inaugural RM4.5 billion (US$970.14 million) sustainability Sukuk

MALAYSIA: The Malaysian government has issued its first ringgit-denominated sustainability Sukuk worth RM4.5 billion (US$970.14 million) on the 30th September 2022, a statement confirmed. Proceeds from the issuance will be utilized to finance or refinance eligible social and green projects as defined in the Malaysian government’s SDG Sukuk Framework.

The 15.5-year facility priced at a profit rate of 4.66% was oversubscribed by 2.38 times, receiving total bids of RM10.7 billion (US$2.31 billion). The issuance attracted investment from local financial institutions (50.3%), institutional investors (38.4%), insurance companies (7.2%) and foreign investors (4.1%).

The Sukuk facility was issued under the new Sustainability Malaysian Government Investment Issues (sustainability MGII) instrument which is expected to entice demand from real-money investors who are looking to formulate a sustainability portfolio.

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