Chicago, April 23 – The government of Malaysia issuing as Malaysia Wakala Sukuk Bhd. sold an upsized offering of $1.3 billion sustainability trust certificates (A3/A-) in two parts, according to a notice.
The government upsized from an initial $1 billion proposal. The offering was oversubscribed by 6.4x.
Malaysia is issuing $800 million of 10-year trust certificates and a $500 million tranche of 30-year trust certificates.
The 10-year sukuk priced with a 2.07% coupon for a spread of Treasuries plus 50 basis points and the 30-year sukuk sold with a 3.075% coupon for a spread of Treasuries plus 80 bps.
Allocations were spread out with 55% going to Asian investors, 33% allocated to Europe, Middle-East and Africa investors and 12% going to the United States for the 10-year. For the 30-year, allocations were 46% to Asia, 33% to EMEA and 21% to the United States.
In both tranches, the highest percentage went to fund managers and insurance companies.
CIMB, HSBC and JPMorgan were joint bookrunners and joint lead managers.
HSBC Amanah Malaysia and JP Morgan were the joint SDG structuring agents.
Proceeds, according to Moody’s Investors Services, will be used to buy a Wakala asset pool consisting of vouchers representing travel entitlements on selected public transport in Malaysia.
| Issuer: | Malaysia Wakala Sukuk Bhd.
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| Issue: | Sustainability sukuk
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| Amount: | $1.3 billion
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| Bookrunners: | CIMB, HSBC and JPMorgan
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| Trade date: | April 22
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| Ratings: | Moody’s: A3
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| S&P: A-
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| Distribution: | Rule 144A and Regulation S
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| Marketing: | Roadshow
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| 10-year sukuk
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| Amount: | $800 million
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| Tenor: | 10 years
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| Coupon: | 2.07%
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| Spread: | Treasuries plus 50 bps
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| 30-year sukuk
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| Amount: | $500 million
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| Tenor: | 30 years
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| Coupon: | 3.075%
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| Spread: | Treasuries plus 80 bps
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