Malaysia $1.5 billion sovereign sukuk

Overview:

• The Malaysian Ministry of Finance, Government of Malaysia, and Malaysia Sukuk Global have issued a $1.5 billion sovereign sukuk (Islamic bond).
• The issue consists of $1 billion in trust certificates due 2026, and $500 million in trust certificates due 2046.
• CIMB, HSBC, JPMorgan and Maybank acted as the bookrunners.
• The transaction represents the first sovereign sukuk to initially involve only non-physical underlying assets.
• It is also the first ever sukuk to include entitlements to travel on public transportation as an underlying asset.
• The deal is structured so that at least 80% of the proceeds will be invested in vouchers representing an entitlement to certain travel units, while the balance will be invested in shares of Pengurusan Aset Air — these assets may be replaced by leasable assets at any time during the life of the sukuk. 

Candy Chan - Journalist