IslamicFinance.de

Malaysia reportedly plans to tap the global Islamic bond market for the first time in almost four years. Banks have been asked to submit proposals for a dollar-denominated debt offering. Malaysia will become the first sovereign to tap the overseas Islamic bond market this year and Indonesia also plans an offering. Malaysia’s state-owned Petroliam Nasional Bhd. is seeking to sell a dollar Sukuk of as much as $7 billion. Malaysia last tapped the market in 2011, when it sold $2 billion of Shari’ah-compliant notes with maturities of five and 10 years. The yield on the 2.991 percent securities due in 2016 has climbed to 1.4 percent from 2014’s low of 0.98 percent.