Malaysia plans first Islamic bond in 8 years, likely to surpass 2002 issuance
May 20, 2010, 12:40 pm TWN
KUALA LUMPUR -- Malaysia's government Wednesday announced plans to issue its first Islamic bonds in eight years, marking a return to tapping funds from the international capital markets amid the country's economic recovery. The bond sale is likely to be bigger than its first US$600 million issuance in 2002 and will be a boost for Malaysia's ambitions to become an Islamic financial center, bankers said. Prime Minister Najib Razak, who is also finance minister, said Malaysia was the first country to successfully launch a global Islamic bond issue or sukuk in 2002 and is ready for its second U.S. dollar-denominated issue.
The size of the bond issue will be determined after a roadshow to investors in Abu Dhabi, Dubai, Hong Kong and New York ends next week but it is "likely to be bigger" than the 2002 issue, said Barclays Managing Director, Steve Clayton.