Malaysia sells US$1.5b Islamic bonds in first global offering since 2011

Kuala Lumpur

MALAYSIA cut borrowing costs in a US$1.5 billion sale of 10- and 30-year Islamic bonds in its first global debt offering since 2011.

The government issued US$1 billion of 10-year securities to yield 3.04 per cent, or 1.15 percentage points more than similar-maturity US Treasuries. It sold US$500 million of 30-year bonds at 4.24 per cent, representing a spread of 1.70 percentage points. Both were priced below the initial price targets of 1.35 points and 1.85 points, respectively. The offering got orders for US$9 billion, according to a Ministry of Finance statement.