Malaysia’s National Higher Education Fund Corp. sold 2.5 billion ringgit ($786 million) of government-guaranteed Islamic debt, two people with knowledge of the matter said.
The 10-year sukuk, or securities that pay returns on assets to comply with Islam’s ban on interest, were privately placed and yielded 3.83 percent yesterday, said the people who didn’t want to be named because the information is private. The Kuala Lumpur-based corporation, known locally as PTPTN, provides financing for students eligible for higher education.
Issuance by Malaysian companies rose 5 percent this year to 15 billion ringgit from the same period in 2011, when full-year sales reached a record 75.6 billion ringgit, according to data compiled by Bloomberg. Demand exceeded supply by more than three times for Johor Corp.’s sukuk sale last week.
Azhar Ahmad, PTPTN’s deputy senior finance manager, couldn’t be reached for comment by telephone today.