Malaysia's US$1.5 Bln Global Sukuk Sets Pricing Benchmark, Says CIMB
KUALA LUMPUR, July 24 (Bernama) -- CIMB Group Holdings Bhd said Malaysia's US$1.5 billion Global Sukuk issuance drew strong demand from high-quality global institutional investors and achieved a record-tight spread for a sovereign US dollar Islamic bond, setting a new benchmark in the international sukuk market.
The bank said the offering was 4.7 times oversubscribed, with the peak order book exceeding US$9.5 billion.
“The government successfully priced the US$1.5 billion Global Sukuk offering, which was 4.7 times oversubscribed, with the peak order book exceeding US$9.5 billion.
“The spreads achieved are a testament to Malaysia's strong credit standing and investors' confidence in the country's growth story, with pricing levels comparable to AA rated sovereign peers,” it said in a statement today.
CIMB participated in the transaction as joint lead manager and joint bookrunner, reaffirming its commitment to strengthening Malaysia's position as a global Islamic capital markets hub.
Group chief executive officer Novan Amirudin said the bank's appointment as the only Malaysian joint lead manager and joint bookrunner reflects the strength of its debt capital markets platform, global distribution capabilities and longstanding leadership in Islamic finance.
“This transaction demonstrates our ability to originate, structure and distribute benchmark sukuk transactions to a diverse international investor base.
“By combining our domestic market leadership with deep engagement across global fixed income investors, we contributed meaningfully to the successful execution of the issuance while further strengthening Malaysia's standing in the international Islamic capital markets,” he said.
CIMB said the transaction also met both funding and investor diversification objectives while attracting broad-based investor participation, underscoring confidence in Malaysia's strong economic fundamentals.
The bank said it will continue to play a leading role in connecting sovereigns, financial institutions and corporates with regional and international investors through integrated debt capital markets solutions.
It added that it remains committed to supporting the continued development of Malaysia's capital markets while reinforcing the country's position as a leading global centre for Islamic finance.
-- BERNAMA