Economics

Malaysia Pays Bigger Premium in Debt Sale as 1MDB Delays Payment

  • Government sells $1.5 billion sukuk amid ringgit rebound
  • Malaysia last issued dollar Islamic bonds in April 2015
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Malaysia paid a bigger premium to bondholders to own some of its new Islamic debt as a delayed interest payment by its troubled state investment fund weighed on demand.

The government priced $1 billion of 10-year notes at a wider spread than an offering a year ago. The sale, which also included $500 million of 30-year notes, drew $6.3 billion of orders, compared with $9 billion for an issuance of the same size in April 2015.