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Malaysia to list US$1.5 billion Islamic bond on HKEX

The Malaysian government priced the dual listing after tightening final pricing by 30 basis points, citing record-low spreads for its sovereign debt.

Reported · Written up by our desk · Government Bonds

Hong Kong is aiming to deepen its role as a fundraising hub in Southeast Asia, as Malaysia prepares a dual bond listing on Bursa Malaysia and Hong Kong Exchanges and Clearing later this week, according to SCMP Economy.

The Malaysian Ministry of Finance said the offering totals US$1.5 billion in Islamic trust certificates, including US$850 million maturing in 5.75 years and US$650 million in 10 years.

SCMP Economy reports that strong investor demand enabled Malaysia to tighten final pricing by 30 basis points from initial guidance, which the ministry described as record-low spreads for the country’s sovereign debt.

The deal also adds to HKEX’s growing bond market, with the exchange having welcomed more than 147 new bond listings this year, reinforcing its push to attract international capital raising.

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