Malaysia’s global sukuk 4.7 times oversubscribed, priced at record‑low spreads

BURSA MALAYSIA, 22 SEPTEMBER 2026 —

The Malaysian government priced a US$1.5 billion global sukuk offering that was 4.7 times oversubscribed, with the peak orderbook exceeding US$9.5 billion.

The 5.75‑year tranche was priced at a profit rate of 4.612 % per annum, equivalent to a spread of 15 bps over the comparable U.S. Treasury yield. The 10‑year tranche carried a profit rate of 4.949 % per annum, or a spread of 25 bps. Both tranches received ratings of A3 from Moody’s and A‑ from S&P Global Ratings, matching the country’s sovereign credit rating and a stable outlook.

Finance Minister II YB Senator Datuk Seri Amir Hamzah said the oversubscription “reflects global investors’ continued confidence in Malaysia’s economic prospects and policy credibility.” He linked the outcome to the Ekonomi MADANI framework, noting that fiscal discipline has narrowed the deficit to 3.7 % of GDP in 2025 from 6.4 % in 2021 and slowed annual borrowing growth to 9 % of GDP, down from 13.6 % over the same period.

The sukuk is based on assets comprising rights to services within Malaysia’s urban public rail transportation network and follows the Manafae concept under AAOIFI guidelines. Proceeds will be used for general Shariah‑compliant purposes, including financing development expenditure and refinancing existing obligations.

A roadshow attracted more than 140 high‑quality investors, ranging from sovereign wealth funds and official institutions to asset managers, banks, insurance companies and pension funds. For the 5.75‑year tranche, 76 % of allocations went to Asian investors, 19 % to Europe, the Middle East and Africa, and 5 % to the United States. The 10‑year tranche saw 63 % allocated to Asia, 18 % to EMEA and 19 % to the United States.

Investor type distribution differed between tranches. In the shorter tranche, banks and financial institutions took 43 % of the allocation, asset and fund managers 27 %, and central banks, corporate and private banks 15 %. In the longer tranche, asset and fund managers accounted for 59 % of the allocation, banks and financial institutions 30 %, and corporate and private banks 7 %.

The offering was conducted under Regulation S and Rule 144A of the United States Securities Act of 1933. The Trust Certificates will be listed on the Hong Kong Stock Exchange, the Labuan International Financial Exchange and Bursa Malaysia under the Exempt Regime. CIMB, HSBC, J.P. Morgan and Standard Chartered acted as joint lead managers and joint bookrunners.

Shariah approval was provided by the Board Shariah Committee of CIMB Islamic Bank Berhad, the HSBC Global Shariah Supervisory Committee, the Standard Chartered Global Shariah Supervisory Committee and the J.P. Morgan Shariah Committee.

Analysts see the tight spreads as a benchmark for future Malaysian sukuk issuances, especially for government‑linked entities and corporates that will use the pricing reference. The strong subscription reinforces Malaysia’s standing as the world’s leading sukuk market and signals that the country’s reform agenda continues to resonate with high‑quality investors despite a challenging global environment.

Related: Ministry of Finance · YB Senator Datuk Seri Amir Hamzah · Bursa Malaysia