Malaysia secures record-low spread on dollar sukuk as global demand hits US$9.5b

KUALA LUMPUR — Malaysia has achieved a historic milestone by securing the lowest-ever pricing spread on a dollar-denominated sovereign bond, with global demand for its sukuk issuance totaling over US$9.5 billion, according to the Ministry of Finance. The issuance, which recorded a remarkable over-subscription rate of 4.7 times, saw peak subscription demand surpassing US$9.5 billion from high-quality institutional investors worldwide.

This strong demand allowed the Malaysian government to reduce the spread by 30 basis points, signaling investor confidence in the country's economy and creditworthiness. The final pricing saw the 5.75-year tranche set at 15 basis points over 5-year US Treasuries, yielding 4.612 percent per annum, while the 10-year tranche was priced at 25 basis points above 10-year US Treasuries, offering a yield of 4.949 percent per annum.