Malaysia’s US$1.5 billion Global Sukuk draws demand exceeding US$9.5 billion
The Ministry of Finance said the two-tranche issuance achieved Malaysia’s lowest Global Sukuk spreads, with subscriptions reaching 4.7 times the offering.
Investors sought more than US$9.5 billion of Malaysia’s US$1.5 billion Global Sukuk issued at the end of July 2026, according to the Ministry of Finance (MoF). The ministry said demand enabled the government to secure its lowest-ever spreads for a Global Sukuk offering.
In a written parliamentary response, MoF put oversubscription across the two tranches at 4.7 times. It said the government narrowed both spreads by 30 basis points (bps) against the initial pricing guidance.
For the 5.75-year tranche, pricing was 15 bps above the US Treasury’s 5-year rate of 4.612 per cent per annum. The 10-year tranche carried a spread of 25 bps over the corresponding US Treasury rate of 4.949 per cent per annum.
MoF said the spreads were close to those obtained by countries with A1 and AA2 ratings, compared with Malaysia’s A3 sovereign rating. It attributed investor confidence to Malaysia’s macroeconomic fundamentals, fiscal discipline and continuing structural reforms.
After the issuance, government offshore debt totalled RM23 billion, representing about 1.7 per cent of total Federal Government debt. MoF said this remained below the RM35 billion statutory ceiling set by the Foreign Loans Act 1963, adding that government borrowing follows applicable legal requirements and limits.
