Malaysia Rail Link (MRL), incorporated in 2016 as a wholly owned vehicle of the Ministry of Finance, launched its RM1.5 billion ($349 million) Sustainable Development Goals (SDG) sukuk, marking the first government-guaranteed SDG sukuk in the Malaysian ringgit market.
Proceeds will fund the electrified East Coast Rail Link, a project designed to knit Kelantan, Terengganu and Pahang into the Greater Klang Valley.
The deal opens MRL’s Islamic commercial papers and Islamic medium-term notes programme, which permits issuances of up to RM10.21 billion and carries an irrevocable government guarantee.
Priced through a private placement, the notes cleared at just 3-4 basis points over Malaysian government securities, the tightest spread yet recorded for a government-guaranteed issuer.
The Malaysian credit agency MARC awarded the programme a “Gold” rating and endorsed the sukuk framework’s six eligible use-of-proceeds categories.
CIMB supported the issue in its capacity as lead arranger, lead manager and Shariah adviser.
