IslamicFinance.de

The Government of Malaysia kicked off bookbuilding on its much-anticipated sukuk this morning, showing tenors of 10 and 30 years at guidance of around 135bp and 185bp over US Treasuries, respectively. The 144A/Reg S offering follows a week of roadshows that ended in New York yesterday evening. Based on guidance alone, the sovereign is providing a small pick-up, but, if demand proves robust, this is likely to be narrowed. Malaysia Sovereign Sukuk will be the issuer of the Islamic notes, and the Government of Malaysia, rated A3/A- (Moody's/ S&P), will be the obligor. Proceeds will be used for the government's general purposes, including the redemption of an existing US$1.25bn trust certificates due this year.