Malaysia raised 4.5 billion ringgit ($970 million) in its first sale of domestic Islamic green bonds, adding to a growing number of countries turning to sustainable debt financing for environmental projects.
The issuance, which was oversubscribed 2.38 times, was priced at 4.662%, Finance Minister Zafrul Aziz said in a statement. Total bids of 10.7 billion ringgit were the most since July 2019 for long-duration debt, he added.
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“The issuance is also a testament to the government’s efforts in advancing climate action as well as accelerating the transition toward achieving a prosperous, inclusive and sustainable nation,” Zafrul said.
Local financial institutions took up half the issuance followed by institutional investors at 38.4%, insurers at 7.2% and foreign investors at 4.1%, according to the statement.
Source: Bloomberg