Euromoney innovations in Islamic finance 2016: Malaysia
Euromoney, is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024
Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Euromoney innovations in Islamic finance 2016: Malaysia

$1.5 billion sukuk

Innovations Islamic 2016 196w
View award winners
Joint bookrunners: Standard Chartered, CIMB, HSBC

There were a handful of jumbo sukuk to consider this year. Indonesia raised $2 billion in a single tranche, the largest ever. Hong Kong returned to the market after last year’s successful debut and raised $1 billion in trust certificates, pricing inside its debut. And there were big issues from sovereign-linked corporates, including Garuda, Petronas and Saudi Aramco.

Our pick of the bunch is Malaysia’s $1.5 billion sukuk, a two-tranche deal that attracted a $9 billion order book and included the longest-ever tenured sovereign sukuk, at 30 years (alongside a 10). 

Additionally, it was innovative at the asset level. “This is the world’s first sovereign sukuk to use rights of services as the underlying assets,” says Tan Sri Dr Mohd Irwan Serigar Bin Abdullah, secretary general of treasury at the ministry of finance for the government of Malaysia.

Specifically, “the structure utilized Shariah-compliant commodities, leasable assets and non-physical income-generating assets in the form of rights to participate in the provision of services,” says Encik Mohd Hassan Ahmad, head of section in the fiscal policy office for the government of Malaysia.

Gift this article