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Malaysia said planning as much as US$1.5b islamic bond sale
[KUALA LUMPUR] Malaysia plans to sell as much as US$1.5 billion of global Islamic bonds, less than a month after Indonesia's sukuk attracted bids of more than three times the offered amount.
The marketing of the notes started on Monday and they will likely have maturities of 10 and 30 years, according to two people familiar with the matter, who asked not to be identified as the information is private. The proceeds will be used to refinance US$1.2 billion of Shariah-compliant debt coming due in July, one of them said.
Malaysia's sale coincides with a rebound in the ringgit, which has rallied more than 10 per cent this year after being Asia's worst-performing currency in 2015.
A pick up in Brent crude is also brightening the outlook for the oil exporter's finances, just as sentiment is improving after an indebted state investment company sold off assets. The cost to protect the nation's sovereign notes from default has also dropped in 2016 from a more than six-year high reached in September.