KUALA LUMPUR, June 22 (Reuters) - Malaysia will begin meeting investors on Wednesday to market its $2 billion global sukuk offering, sources with direct knowledge of the plan said.
In its second global sukuk sale in as many years, Malaysia aims to sell two tranches of Islamic bonds with maturities of five and 10 years, one of the sources said.
The roadshow will start in Kuala Lumpur and move on to Singapore, Hong Kong and the Middle East, with pricing expected to take place by end-June, both sources said.
Government officials were not immediately available for comment.
Sources with direct knowledge of the matter had earlier told Reuters the government would issue the sukuk under the wakala or Islamic agency structure. The joint lead managers for the sale are Citi , HSBC , CIMB and Malayan Banking .
The Southeast Asian country, which has the world’s largest sukuk market, last tapped the global market in May 2010 when it sold $1.25 billion of five-year sukuk ijara or Islamic leasing bonds at a yield of 3.928 percent.
Issuers such as the Indonesian and Nigerian governments, HSBC Middle East, Bahrain’s Al Baraka Bank and Qatar Islamic Bank are also eyeing sukuk sales.
Islamic bond issuance fell 26 percent to $14 billion in 2010 in the aftermath of Dubai’s debt restructuring and high-profile sukuk defaults that exposed legal uncertainties surrounding these instruments, according to Thomson Reuters data.
Click on for more Islamic finance stories and for a speed guide Reporting by Liau Y-Sing