Strong Demand for Malaysia’s International Sustainability Sukuk Indicates Investor Interest in Sustainability Finance: Moody’s

The high demand for Malaysia’s recently issued sovereign international sustainability Sukuk demonstrates investor interest in sustainability finance and is also a credit positive to the Government of Malaysia, said Moody’s Investors Service (Moody’s).

Why it Matters?

Moody’s noted that this issuance set a benchmark for issuers who address environmental, social and governance concerns. The issuance was credit positive for the Government because this new avenue of financing moderates its already low liquidity risk by diversifying Malaysia’s creditor base and keeping funding costs low.

Details

On the 22nd of April 2021, the Government issued two tranches of its first international sustainability Sukuk: USD 800 million with 10-ye...