KUALA LUMPUR, June 29 (Bernama) -- The Government of Malaysia's five-year and 10-year Wakala Global Sukuk worth RM2 billion in total has been oversubscribed by 4.5 times, thanks largely to strong investor demand from the Middle East, Malaysia, Asia, Europe and the US.
Announcing details of the successful offering, the Ministry of Finance (MOF) said the Islamic bond issuance attracted interest in excess of over US$9 billion and was fully distributed to over 320 global investors. (source)
Announcing details of the successful offering, the Ministry of Finance (MOF) said the Islamic bond issuance attracted interest in excess of over US$9 billion and was fully distributed to over 320 global investors. (source)
"The deal attracted interest from a diverse group of domestic and international investors.
"The allocation was well-spread globally with 29 per cent of the Sukuk distributed to the Middle East, 27 per cent to Malaysia, 22 per cent to the rest of Asia, 14 per cent to Europe and eight per cent to the US," said the ministry.
It said the strong investor demand reflected confidence in the government's comprehensive transformation agenda driven by the implementation of the Economic Transformation Programme, the Government Transformation Programme and the Strategic Reform Initiatives underpinned by the concept of 1Malaysia, People First, Performance Now.
The MOF said the Wakala Global Sukuk was the government's third US dollar denominated sovereign Sukuk issuance following the successful Global Sukuk issuance last year.
The five-year and 10-year benchmark Wakala Global Sukuk (Global Trust Certificates), issued via a special purpose vehicle, was priced on June 28, 2011 at 2.991 per cent and 4.646 per cent respectively.
The US$1.2 billion 2.991 per cent Sukuk Wakala is due on July 6, 2016 while the US$0.8 billion 4.646 per cent Sukuk Wakala is due on July 6, 2021.
According to Treasury Secretary-General Tan Sri Dr Wan Abdul Aziz Wan Abdullah, who led the roadshow from Kuala Lumpur to Hong Kong, Singapore, Dubai, Abu Dhabi, Riyadh, London and New York, the Wakala Global Sukuk represented a number of "firsts".
It was the first global sovereign US dollar Sukuk for 2011, the first global sovereign US dollar Sukuk structured under the Shariah principle of Wakala, the largest dual-tranche global sovereign US dollar Sukuk ever issued, the first 10-year global sovereign US dollar Sukuk and the lowest absolute yields achieved by an Asian sovereign for a new US dollar issue.
Furthermore, the Wakala Sukuk establishes a new benchmark in the Islamic capital markets, the MOF said.
The deal was priced at the tighter end of the revised priced guidance reflecting investor confidence in the Malaysian credit story and has been assigned credit rating of A- by Standard and Poor's and A3 by Moody's.
CIMB, Citi, HSBC and Maybank acted as the Joint Bookrunners and Joint Lead Managers for the Wakala Global Sukuk offering.
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