Malaysia Kicks Off Its First-Ever Sustainability Sukuk Deal
Bloomberg 1 hr ago Finbarr Flynn and Harry Suhartono
(Bloomberg) Malaysia started marketing its first-ever sustainability Sukuk, adding to a growing number of countries turning to debt financing for environmental projects.
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The Southeast Asian nation is marketing dollar-denominated Islamic finance securities in 10-year and 30-year parts, and the shorter tenor is a sustainability offering, a person familiar with the matter said. The deal may price as soon as today, according to the person, who asked not to be identified as the details are private.
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Lockdown Will Take Toll on Malaysia’s Already Steep Yield Curve
Bloomberg 1/22/2021 Marcus Wong
(Bloomberg) Malaysia’s yield curve has raced higher over the past year and is now near the steepest since 2017. The return to a strict lockdown and delays to vaccine distribution mean it may have further to run.
The spread between the nation’s three-year and 10-year sovereign debt climbed above 90 basis points last week, up from just 16 basis points before the coronavirus selloff in March. The tighter lockdown announced Jan. 11 and the imposition of a state of emergency the following day, are likely to intensify concern that Malaysia will fall short of its growth and fiscal consolidation targets this year, pushing up longer-term yields.