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.
