Malaysia Sukuk Refinancing Window Opening as Fed Wavers on Rates
- MMC Corp. starts marketing 1.5 billion ringgit bond sale
- Corporate yields stabilizing after surging last quarter
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Malaysia’s two biggest banks are predicting a pickup in the country’s Islamic bond sales as companies try to refinance debt before the Federal Reserve raises interest rates.
Forecasts that the Fed will keep interest rates lower for longer have given local businesses a bigger window to refinance, according to Malayan Banking Bhd. and CIMB Group Holdings Bhd. MMC Corp., a Kuala Lumpur-based infrastructure firm, started marketing 1.5 billion ringgit ($358 million) of Shariah-compliant bonds to refinance non-Islamic loans this month, said Managing Director Che Khalib Mohamad Noh.