BNM May Purchase up to 10% of Government Proposed USD 715.75 Million Islamic Securities in the Form of Government Investment Issues

In a filing with Bank Negara Malaysia’s (BNM) Fully Automated System for Issuing/ Tendering (FAST) website, the country’s Central Bank remarked that it might purchase up to 10% of the Malaysian government’s proposed issuance of MYR 3 billion (USD 715.75 million) Islamic securities in the form of Government Investment Issues (GII) under Murabahah contract.

Why it Matters?

BNM is the facility agent for the issuance and has stated that the securities will be issued on the 31st of January 2022 with an annual profit rate of 3.447%. They are to be redeemed at par on the 15th of July 2036 and profit will be paid on a half-year basis on the 15th of January and the 15th of July every year starting July 2022.

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