Malaysia's Global Sukuk Seen Paying Premium Over Existing Debt
- Nation has $1.2 billion of dollar Islamic notes due in July
- Overseas funds held record amount of government bonds in March
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Malaysia may price its 10- and 30-year global Islamic bonds at 150 and 165 basis points over U.S. Treasuries, according to a person familiar with the matter who isn’t authorized to speak publicly.
Based on current market yields, that would suggest a coupon rate of 3.27 percent for the shorter-maturity notes and 4.23 percent for the longer-term debt. Malaysia’s existing sukuk maturing in 2025 yield 3.05 percent, while securities due in 2045 are paying 3.96 percent, data compiled by Bloomberg show. The Southeast Asian nation has $1.2 billion of Shariah-compliant dollar notes coming due in July.