Three novel sukuk transactions are an important step forward for the Islamic finance industry, involving the Government of Malaysia, Khazanah and the Government of Maldives.
The Government of Malaysia issued the world’s first sovereign US dollar sustainability sukuk issuance via $800 million worth of 10-year trust certificates. The proceeds will be used for eligible social and environmental projects. The Government also issued $500 million in 30-year trust certificates concurrently with the 10-year issuance.
The joint offering was the highest oversubscription rate ever achieved by the Government of Malaysia, according to Linklaters, the law firm, which acted for the issuer.
Linklaters added that this is recognition of Malaysia’s capabilities in structuring innovative sukuks in the Islamic finance industry.
The firm also advised Khazanah Nasional Berhad (Khazanah), Malaysia’s sovereign wealth fund, on its recent $1 billion dual tranche sukuk issuance via a special purpose vehicle, Dua Capital.
This is Khazanah’s first US dollar sukuk issue since 2016, leading to strong demand from investors across Asia, Europe and the Middle East.
Linklaters also advised on the establishment of Maldives Sukuk Issuance Limited's $1 billion trust certificate issuance programme, and the subsequent $200 million give-year sukuk issuance – the Maldives’ debut sovereign sukuk in the Islamic finance market.
