MYR 3.5 billion sukuk achieves profit rate of 3.743%

As part of its GII issuance programme, the Government of Malaysia issued a MYR 3.5 billion sukuk. The five and half year issuance which matures in August 2021 received orders of MYR 9.96 Billion from 277 bids and achieved a profit rate of 3.743%, comparing favourably to its previous issuance at end of October 2015.

Government of Malaysia GII

GII is issued based on Murabahah concept. GII based on Murabahah contract is essentially a certificate of indebtedness arising from a deferred  mark-up sale transaction of an asset, such as commodity (mainly crude palm oil),  which complies with Shariah principles. The issuance under Murabahah contract  will involve commodity transactions to create indebtedness between the sukuk issuer

and the investors.

Government Investment Issue Structure