IslamicFinance.de

The Government of Malaysia sold the world's first 30-year sovereign sukuk yesterday and, in the process, shrugged off domestic woes to establish a long-dated benchmark Islamic curve for other sovereigns to follow. The 30-year was part of a two-tranche offering of US$1.5bn in Islamic 144A/Reg S bonds to the international markets at a time when 1MDB's M$41.9bn debt woes threaten to derail the government's bid to rein in its fiscal and budget deficits. Malaysia stayed disciplined and kept to its initially targeted issue size of US$1.5bn split between the US$1bn 10-year note and the US$500m 30-year note. The 2025s, priced to yield 115bp over US Treasuries, rallied to 112bp/109bp and the 2045s, priced at 170bp, traded at 164bp/161bp.