Malaysia Re-Enters US Dollar Sukuk Market with $750M Issue

Malaysia's bond market has seen a comeback of US dollar-denominated sukuk issues. The country, which had been on a hiatus from issuing US dollar sukuk for several years, returned to the global debt markets with a $750 million offering that attracted strong demand.

The issue was priced at 130 basis points over the mid-swaps rate and was awarded a 'Baa1' rating by Moody's Investors Service. The deal saw participation from over 250 investors, including banks, asset managers, and pension funds.

Malaysia's move to return to the US dollar sukuk market is seen as a positive development for the country's debt markets. It comes at a time when there has been growing demand for Islamic bonds in the global markets.