Malaysia is in the final stage of issuing a RM2.2 billion worth of bonds for the development of the country's forest plantations, a minister said today.

Deputy Plantation Industries and Commodities Minister Anifah Aman said the domestic bond issue would be called the "Green Bond."

"We are in the final stage of preparing for the bond. It will be a 15-year bond and is expected to be issued by year-end," he was quoted as saying by Bernama news agency.

Anifah said the ministry has identified five states, namely Sabah, Sarawak, Johor, Pahang and Terengganu, for the forest plantation development.

A total of 375,000 hectares of land will be allocated for the project, he said. There are currently 270,000 hectares of forest plantations in Malaysia.

On whether it would be an Islamic-style bond, Anifah said: "We have not come to that stage yet. Our preference is to raise it (the Green Bond) internally as there is ample liquidity in the country."