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February 14, 2014updated 04 Apr 2017 2:30pm

Export-Import Bank of Malaysia launches first US$300million sukuk

Export-Import Bank of Malaysia (MEXIM) has said it had priced the world's first U.S. dollar-denominated Islamic bond issue, a US$300 million, five-year sukuk that attracted US$3.2 billion of investor orders.

By Verdict Staff

Export-Import Bank of Malaysia (MEXIM) has said it had priced the world’s first U.S. dollar-denominated Islamic bond issue, a US$300 million, five-year sukuk that attracted US$3.2 billion of investor orders.

The sukuk, which is structured under the Shariah principle of wakala, has been priced at 140 basis points over US with a similar coupon and re-offer yield of 2.874%, which was tightened from the initial price guidance of 165 basis points over UST.

According to MEXIM, the sukuk was sold to over 185 Islamic and conventional investors, with 19% of the issue distributed to the Middle East, 65% to Asia and remaining 16% to Europe.

However, the earnings from the sale will be used for MEXIM’s Shariah-compliant working capital, general banking and financing activities.

The Sukuk, which is established through EXIM Sukuk Malaysia, will be listed on Labuan International Financial Exchange and Singapore Exchange Securities Trading.

BNP Paribas, CIMB, HSBC and Maybank have been appointed as the joint lead managers for the sukuk programme.

Dato’ Adissadikin Ali, president/CEO of MEXIM, said: "The issuance is in line with MEXIM’s initiatives to grow its Islamic finance business and would position MEXIM to capture opportunities in the Islamic financial markets. The Sukuk also represents MEXIM’s commitment to support the Government’s ongoing initiatives and efforts to position Malaysia as an international Islamic finance marketplace."

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