| [Bloomberg] Malaysia is said to be planning a 10-year dollar-denominated Islamic bond, its second sovereign sale of Shariah-compliant debt in a year, four people familiar with the matter said. The deadline for the request for proposals from bankers has closed and the government has yet to take a final decision, said one of the people. Three local investment banks submitted pitches proposing a size of $500 million, which can potentially be raised to $1.7 billion, three of the people said. An offering of 10-year overseas Islamic debt would set a benchmark for the $1 trillion industry, where issuers tend to favor shorter maturities such as five years or less. The government may be willing to pay a higher yield on the notes than non-Shariah-compliant bonds because it wants to strengthen Malaysia’s position as the global hub for Islamic finance and the biggest market for sukuk, the people said. |
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