(Updated)

Malaysia’s US$1.3b sustainability sukuk listed on Stock Exchange of Hong Kong

Malaysia’s US$1.3b sustainability sukuk listed on Stock Exchange of Hong Kong
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KUALA LUMPUR (May 8): Malaysia's US$1.3 billion (about RM5.35 billion) sustainability sukuk or Islamic bonds have been listed on The Stock Exchange of Hong Kong Ltd for purchase by professional investors, according to the debt securities’ issuer Malaysia Wakala Sukuk Bhd’s filings with the bourse.

According to the filings on April 28 and 29, 2021, an application was made with the bourse for the listing of and permission to deal in the securities by way of debt issues to professional investors as described in the offering memorandum dated April 21, 2021.

The debt securities' offering circular and pricing supplement dated April 29, 2021 said: "The issuer confirms that the [trust] certificates are intended for purchase by professional investors only and have been listed on The Stock Exchange of Hong Kong on that basis."

"Accordingly, the issuer confirms that the certificates are not appropriate as an investment for retail investors in Hong Kong. Investors should carefully consider the risks involved,” it said.

"As at the date of this announcement (April 29, 2021), the executive directors of Malaysia Wakala are Dr Sivabalasingam Veerasingam and Imri Dolhadi Ab Wahab,” the document said.

On April 22, 2021, Malaysia’s Ministry of Finance said in a statement that the government had successfully priced the world’s first sovereign US dollar sustainability sukuk via the issuance of the US$800 million 10-year trust certificates at a profit rate of 2.070% a year and US$500 million 30-year trust certificates at a profit rate of 3.075% a year.

"Malaysia’s maiden sustainability sukuk is the world’s first US dollar sustainability sukuk issued by a sovereign, whereby proceeds will be used for eligible social and green projects aligned to the United Nation’s Sustainable Development Goals Agenda,” the ministry said.

On April 28, 2021, Malaysia Wakala said in a filing with The Stock Exchange of Hong Kong that an application had been made to the bourse for the listing of and permission to deal in the certificates by way of debt issues to professional investors.

Permission for the listing of and dealing in the certificates was expected to become effective on April 29, 2021, Malaysia Wakala said.

Chong Jin Hun