Malaysia launches dollar Islamic bond for infra and government projects, term sheet shows

Malaysia has launched a dual-tranche U.S. ​dollar Islamic bond, ​marking its return to the international ​dollar market after more than three years, according to a term sheet seen by Reuters on ‌Thursday.

Here are ⁠the ⁠details:

* The offering, issued through Malaysia Sovereign ​Sukuk Berhad with the Government of Malaysia as obligor, ​comprises 5-3/4-year and 10-year tranches, the term sheet showed.


* Initial price guidance is set ​at around 45 basis ⁠points for the ‌5-3/4-year tranche and 55 ​basis points ​for the 10-year tranche, according to ⁠the term sheet.

* Proceeds are earmarked ​for government-approved projects and programmes, including ​infrastructure development.

* A sukuk is an Islamic financial instrument that serves a similar purpose to a bond, but is structured to comply with Islamic law (Shariah), which ‌prohibits payment and receipt of interest.

* Malaysia last tapped the international U.S. ​dollar market in ​April ⁠2021, when it raised $1.3 billion through a dual-tranche sustainability sukuk.

* CIMB, HSBC, J.P. Morgan and Standard ​Chartered are acting as joint bookrunners and joint lead managers on the deal.

* Settlement is scheduled for July 30, the term sheet showed.