Malaysia Airlines Announces Redemption of MYR 1.5 Billion Sukuk Musharakah Amidst Restructuring Negotiations with Creditors

Malaysia Airlines has announced that it will be redeeming its MYR 1.5 billion Sukuk Musharakah early. The filing made by CIMB Investment Bank on Bank Negara Malaysia’s Fully Automated System for Issuing and or Tendering (FAST), in the second week of February 2020, stated that the redemption would take place in full. The Sukuk had been issued to raise funds for general investment and working capital purposes.

On the 17th of September 2020, Malaysia Airlines had issued notices stating its deferral of payments to bondholders, ahead of its periodic distribution date of the 30th of September 2020, adding that the distribution date would be deferred to the 31st of March 2021. The airline, which has been ailing financially for over twenty years had made this announcement citing...