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.
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.