Kazakh Development Bank Swaps Ringgit Sukuk Proceeds to Dollars

Development Bank of Kazakhstan JSC, which issued the country’s first ringgit-denominated bond, swapped the proceeds from the sale into U.S. dollars.

The 240 million-ringgit ($76.7 million) five-year murabaha Islamic note, which was priced to yield 5.5 percent, was swapped into $76 million at a 4.95 percent yield as part of an agreement with Royal Bank of Scotland Group Plc, the Astana-based bank said in a statement published on the Kazakhstan Stock Exchange’s website today. The swap comes due in August 2017, according to the state-owned lender.

Development Bank of Kazakhstan sold debt denominated in the Malaysian currency in July, according to data compiled by Bloomberg. Murabaha is a financing structure acceptable under Sharia, or Islamic religious law.

To contact the reporter on this story: Nariman Gizitdinov in Almaty at ngizitdinov@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.