Malaysia
| Malaysia has priced its US$2 billion dual-tranche global sukuk, attracting bids worth almost five times the issue size. Analysts said the offering could encourage more issuers to come to the market, despite recent volatility in global financial markets sparked by worries about Greece’s debt crisis, Reuters reported. The sovereign’s wakala sukuk attracted US$9 billion worth of subscriptions, the finance ministry said in a statement, and was distributed to more than 320 investors. Middle Eastern investors took up almost a third of the paper, while Malaysia and other Asian investors bought about half. CIMB , Citi , HSBC and Maybank acted as the deal’s joint bookrunners and joint lead managers. Malaysia’s second offering in two years, the issue comes at a time when the global sukuk market is showing tentative signs of recovery. The country last tapped the global market in May 2010 when it sold US$1.25 billion of five-year sukuk ijara or Islamic leasing bonds at a yield of 3.928 percent. Reuters said the strong demand was partly due to the scarcity of Islamic paper, after Dubai’s debt restructuring and several recent high-profile defaults. Global Islamic bond sales fell 26 percent to US$14 billion in 2010, according to Thomson Reuters data. |
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