Malaysia’s latest US$1.5 billion Global Sukuk issuance was oversubscribed 4.7 times, with the orderbook exceeding US$9.5 billion as strong international demand allowed the Government to achieve its tightest ever spreads for global sukuk issuances.
The Ministry of Finance said the offering comprised US$850 million in 5.75-year Trust Certificates and US$650 million in 10-year Trust Certificates. Final pricing was tightened by 30 basis points from the initial guidance, reaching T+15 basis points for the shorter tranche and T+25 basis points for the longer tranche.
Finance Minister II YB Senator Datuk Seri Amir Hamzah said the strong investor response reflected confidence in Malaysia’s economic direction, fiscal reforms and debt management strategy.
“The strong oversubscription with the tightest ever spreads, reflects global investors’ continued confidence in Malaysia’s economic prospects and policy credibility, demonstrating that our reform agenda, prudent debt management strategy, and commitment to sustainable growth continue to resonate with high-quality investors despite a challenging global environment,” he said.
The Sukuk was structured using rights to services within Malaysia’s urban public rail transportation network under the Manafae concept, highlighting the country’s role in Islamic finance and reinforcing its position as a leading global sukuk market.
The government said Malaysia’s fiscal position has strengthened, with the fiscal deficit narrowing to 3.7% of GDP in 2025 from 6.4% in 2021. Economic growth remained resilient, expanding by 5.2% in both 2024 and 2025, while approved investments reached a record RM431.1 billion and total trade surpassed RM3 trillion in 2025.
Both Sukuk tranches received A3 ratings from Moody’s Investors Service and A− ratings from S&P Global Ratings, in line with Malaysia’s sovereign credit ratings and stable outlook. The proceeds will be used for Shariah-compliant government purposes, including development expenditure and refinancing existing obligations.
