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Issuance of second samurai bond to be finalised early 2020


The government is expected to conclude talks on the second samurai bond in the first quarter of next year, said Deputy Finance Minister Amiruddin Hamzah.

“We are still looking into it. Most probably by the first quarter of next year, it can be finalised. The discussion is still ongoing.

“The government is trying to get the best rate which we hope will be much lower from the first samurai bond," Amiruddin (photo above) told reporters after officiating the Malaysian Bond and Sukuk Conference 2019 in Kuala Lumpur today.

Earlier in his speech, Amiruddin said Malaysia has remained as the main driver for the sukuk market while continuing to lead in the Islamic wealth management industry.

"Corporate bonds showed a stabilising pattern, with the total hovering between RM85 billion and RM125 billion in the last five years, at an average of RM99 billion annually.

"Total corporate sukuk as a percentage of total corporate bonds issued remained high, between 67 percent and 80 percent," he added.

He said government sukuk had also been maintained between RM45 billion and RM64 billion.

"Outstanding bonds and sukuk are valued at RM1,498 billion at the third quarter of 2019, and this underscores the fact that the Malaysian market continues to be an attractive investment destination for sukuk investors," he said.

Amiruddin further noted that for years, sukuk had experienced high demand from Islamic investors as well as from conventional investors in various major markets.

"Sukuk issuance from Malaysia grew from US$13.5 billion in 2014 to US$22.5 billion in 2019 to date with an average growth of 11.4 percent per annum versus 13 percent per annum for global sukuk in total.

"Global issuances for the last five years remain active totalling US$179.1 billion to date from January 2015, and were mostly from Malaysia, followed by supra-nationals, Turkey, Qatar, Indonesia, United Arab Emirates and Saudi Arabia," he added.

- Bernama

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