Malaysia Sells World’s First Sovereign USD Sustainability Sukuk Worth USD 1.3 Billion; Oversubscribed 6.4 Times

The Government of Malaysia has successfully priced the world’s first sovereign USD-denominated Sustainability Sukuk worth USD 1.3 billion, with the issuance of USD 800 million 10-year Sukuk and USD 500 million 30-year Sukuk. As the offering was oversubscribed 6.4 times, the Government upsized the initial total target size of USD 1 billion to USD 1.3 billion, according to a statement released by the Ministry of Finance.

Why it Matters?

The issuance marks Malaysia’s maiden Sustainability Sukuk and is also the world’s first USD Sustainability Sukuk issued by a sovereign. The underlying assets of the Sukuk are travel entitlement vouchers on Malaysia’s transport networks. Proceeds will be used for eligible social and green projects...