Connect with us

Hi, what are you looking for?

The Smart Citizen Report


Malaysia Kicks Off Its First-Ever Sustainability Sukuk Deal

imageEconomy2 hours ago (Apr 21, 2021 12:00AM ET)

(C) Bloomberg. Customers wearing protective masks looks at headscarves in a store during a partial lockdown imposed due to the coronavirus in Kuala Lumpur, Malaysia, on Wednesday, May 20, 2020. The Malaysian government is working to implement its 260 billion ringgit ($60 billion) stimulus package, the biggest in Southeast Asia as proportion of gross domestic product, while promising another set of measures to bolster an economy struggling with the effects of the pandemic. Photographer: Ian Teh/Bloomberg

(Bloomberg) — Malaysia started marketing its first-ever sustainability Sukuk, adding to a growing number of countries turning to debt financing for environmental projects.

The Southeast Asian nation is marketing dollar-denominated Islamic finance securities in 10-year and 30-year parts, and the shorter tenor is a sustainability offering, a person familiar with the matter said. The deal may price as soon as today, according to the person, who asked not to be identified as the details are private.

Click here for more details on the initial price guidance

Sustainable debt issuance rose 29% last year to a record $732 billion, according to figures from BloombergNEF. Indonesia sold green debt that complies with religious principles in 2018, making it the first country in the world to issue such securities, according to a United Nations Development Programme report.

“Demand for ESG or sustainability-linked bonds continues to gain traction while there is still a limited supply” of such issuances from Southeast Asia, said Winson Phoon, head of fixed-income research at Maybank Kim Eng Securities in Singapore. “Adding the sustainability label helps widen further the investor base.”

Malaysia is also an infrequent issuer in overseas debt markets, last selling dollar debt in 2016. The longer duration of the sovereign’s U.S. currency notes meant they suffered during a selloff in the first quarter, resulting in year-to-date losses for investors, but have rebounded somewhat of late as rates retreated.

Like governments around the globe, Malaysia has been tackling the impact of the pandemic, and Prime Minister Muhyiddin Yassin unveiled a 20 billion ringgit ($4.9 billion) stimulus package last month that included discounts on power bills, tax breaks and cash aid to the poor.

The nation’s gross domestic product may expand 6% to 7.5% in 2021, Malaysia’s central bank said last month. That’s potentially slower than its earlier projection of 6.5%-7.5% growth, but still ahead of many of its neighbors.

(Updates with analyst comment in fourth paragraph.)

(C)2021 Bloomberg L.P.

Malaysia Kicks Off Its First-Ever Sustainability Sukuk Deal

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Join Our Time-Limited Free Subscription! Get Latest Trading Ideas, Business Info and Market Stocks.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

You May Also Like

Editor's Pick

 Going Full Liberal In response to the arrest of a man who walked into a cafe holding a baseball bat and screaming through a megaphone, a...

Editor's Pick

Going Full Liberal The liberal plan?  Get the body count as high as possible to hurt Trump.  These people are disgusting. Last week, the...

Editor's Pick

Going Full Liberal More trouble for creepy Joe. An extensive new survey by Morning Consult of nearly 28,000 registered voters presents some troubling numbers for the...

Editor's Pick

Going Full Liberal Liberal brilliance on full display. New York City appears to have experienced a surge in shootings this week after the New...

Editor's Pick

Going Full Liberal In the past few weeks, demonstrators — mobs, really — have destroyed or defaced the following statues across the United States....

Editor's Pick

Going Full Liberal The Justice Department released Peter Strzok notes from 1/4/2017 regarding the Flynn-Kislyak calls. Last month it was revealed 2020 Democrat presidential...

Editor's Pick

Going Full Liberal National Public Radio (NPR) posted a tweet Saturday urging every reader to begin “decolonizing your bookshelf.” According to NPR, “white voices...


Crude oil prices plunged sharply on Thursday, extending losses to a fifth session, amid concerns about the outlook for energy demand. The coronavirus has...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.

The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

© Copyright 2021, All Rights Reserved