Malaysia yesterday issued a $1.25bn Islamic dollar bond, its first global offering in eight years, as it sought to bolster its position as a centre for Islamic finance.
The five-year notes will provide a benchmark for pricing bonds in Malaysia, which has become the world's biggest market for sukuk , or bonds that are structured to comply with Shariah law.
The deal comes at a turbulent time in global markets - and sovereign bond markets in particular - as investors have grown fearful Greece and other indebted European nations will struggle to honour their debts.
Malaysia yesterday saw strong demand for its bonds - priced at 180 basis points above US Treasuries - partly because of their rarity value. The country last issued a global bond in 2002 when it raised $600m by selling the world's first international sovereign sukuk. The success of the sale could tempt other Asian bond issuers back to the markets, analysts say.
source : Financial Times