Silterra's sukuk defies weak Malaysian bond market

The semiconductor company issues M$1.8 billion worth of Islamic Trust certificates in a market that is still suffering from an overhang of Malaysian government bonds.

Silterra Capital Berhad, a special purpose vehicle established by semiconductor wafer foundry Silterra Malaysia, has priced a M$1.8 billion $529 million fixed-rate seven-year government guaranteed Islamic Trust certificate bond at a yield of 3.90%. The bonds were issued last Friday under the Shariah-compliant principle of Ijara via CIMB, Citi and HSBC.

According to traders, the bonds were trading at around 3.85% yesterday, with last nightÆs absolute yield standing at 3.90%. Traders say that sentiment in the Malaysian bond...

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