PUTRAJAYA, July 24, 2026 — Malaysia has successfully priced a US$1.5 billion Global Sukuk issuance, attracting overwhelming investor demand with subscriptions reaching more than 4.7 times the offering size and total orders exceeding US$9.5 billion, the Ministry of Finance announced on Friday.

The issuance comprises US$850 million in a 5.75-year tranche and US$650 million in a 10-year tranche. Strong demand enabled the government to tighten pricing by 30 basis points from the Initial Price Guidance (IPG), resulting in final spreads of 15 basis points over U.S. Treasuries for the 5.75-year tranche and 25 basis points for the 10-year tranche—the lowest spreads ever achieved for a Malaysian global sukuk issuance.

The Ministry said the transaction reinforces Malaysia’s standing in international capital markets while establishing a new pricing benchmark for future global issuances by government-linked entities and private sector issuers.

The sukuk is backed by service rights over Malaysia’s urban public rail transport network and is structured under the Manafae concept in accordance with the guidelines of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), underscoring Malaysia’s leadership in Islamic finance and the global sukuk market.

Investor Confidence in Economic Reforms

Minister of Finance II, Senator Datuk Seri Amir Hamzah Azizan, said the successful issuance reflects growing international confidence in Malaysia’s economic policies under the MADANI Economy framework.

“Malaysia’s economic policies today are guided by the MADANI Economy framework, which has placed the nation on the right trajectory. We have strengthened public finances, ensured sustainable economic growth, and laid a solid foundation for Malaysia’s long-term resilience,” he said.

He added that the record-low spread and strong oversubscription demonstrate sustained investor confidence in Malaysia’s economic outlook and fiscal reform agenda despite ongoing global uncertainties.

“This achievement reflects the effectiveness of our reform agenda, prudent debt management strategy and commitment to sustainable growth, which continue to attract high-quality international investors,” he said.

Fiscal and Economic Progress

The Ministry noted that the positive market response comes nearly three years after the launch of the MADANI Economy framework on July 27, 2023, which aims to raise the nation’s economic potential, improve public welfare and strengthen governance.

Malaysia’s fiscal deficit narrowed from 6.4% of GDP in 2021 to 3.7% in 2025, while government borrowing declined from 13.6% to 9.0% of GDP over the same period, reflecting continued fiscal discipline under the Public Finance and Fiscal Responsibility Act 2023.

Economic growth remained resilient at 5.2% in both 2024 and 2025, supported by strong domestic demand and private investment. Approved investments reached RM431.1 billion in 2025, while total trade surpassed RM3 trillion for the first time, amounting to RM3.06 trillion.

Growth momentum continued into 2026, with the economy expanding 5.4% in the first quarter, while advance estimates indicate 5.8% growth in the second quarter, placing Malaysia on track to outperform earlier projections.

Strong Credit Ratings and Broad Investor Participation

Both sukuk tranches were assigned sovereign credit ratings of A3 by Moody’s Investors Service and A- by S&P Global Ratings, with a stable outlook.

The 5.75-year tranche was priced at a profit rate of 4.612% per annum, while the 10-year tranche carries a profit rate of 4.949% per annum.

The investor engagement programme attracted participation from around 140 international investors, including sovereign wealth funds, central banks, government institutions, asset managers, financial institutions, insurance companies and pension funds.

Geographic Distribution

The 5.75-year tranche was allocated to:

• Asia: 76%
• Europe, Middle East and Africa (EMEA): 19%
• United States: 5%

The 10-year tranche was allocated to:

• Asia: 63%
• EMEA: 18%
• United States: 19%

Investor Breakdown

For the 5.75-year tranche, allocations comprised:

• Banks and financial institutions: 43%
• Fund and asset managers: 27%
• Central banks, corporate and private banks: 15%
• Sovereign wealth funds and public sector institutions: 8%
• Insurance companies and pension funds: 7%

For the 10-year tranche, allocations were:

• Fund and asset managers: 59%
• Banks and financial institutions: 30%
• Corporate and private banks: 7%
• Central banks: 4%

Listing and Use of Proceeds

The issuance was conducted under Regulation S and Rule 144A of the U.S. Securities Act of 1933 and will be listed on the Hong Kong Stock Exchange, Labuan International Financial Exchange (LFX) and Bursa Malaysia under the Exempt Regime.

Proceeds from the sukuk will be used for Shariah-compliant general government purposes, including financing development expenditure and refinancing existing obligations.

The transaction was jointly managed by CIMB, HSBC, J.P. Morgan and Standard Chartered Bank, which acted as Joint Lead Managers and Joint Bookrunners. The sukuk’s Shariah structure received approval from the respective Shariah supervisory boards of the participating financial institutions.