Malaysia sells $1.25 billion sukuk

After an eight-year absence from the market, Malaysia’s five-year Islamic bond is lapped up by investors, pushing the yield to 3.93% -- a record low for an emerging market sovereign in Asia.

The Malaysia sovereign ended an eight-year absence from the international debt markets with the issue of a $1.25 billion sukuk, or Islamic bond, early Friday morning. The 144AReg-S registered securities were issued with a five-year bullet that has been set to mature on June 4, 2015.

With a 3.93% fixed-rate coupon and an issue and reoffer price at par, this is only the second bond to be issued by an emerging market country in the past five years to yield below 4% -- and the first ever by an Asian emerging market sovereign. The last country to issue at sub-4% was Russia, which sold a $5.5 billion dual-tranche bond in April that...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222