Malaysia secures record-low spread on dollar sukuk as global demand hits US$9.5b

A view of the city skyline shows the Petronas Twin Towers and KL Tower in Kuala Lumpur on August 5, 2025. — Picture by Raymond Manuel

By Syed Jaymal Zahiid

First Published: Wednesday, 04 Nov 2026 12:36 PM MYT

KUALA LUMPUR — Malaysia has secured its lowest-ever pricing spread on a dollar-denominated sovereign bond, after drawing more than US$9.5 billion (RM38.6 billion) in total demand for its global sukuk issuance, Parliament was told.

“This sukuk issuance recorded the lowest spread in history, as well as an over-subscription rate of 4.7 times with peak subscription demand exceeding US$9.5 billion from high-quality institutional investors worldwide,” the Ministry of Finance said in a written reply (November 3) to Kalam Salan (PN-Sabak Bernam).

“This strong demand enabled the government to reduce the spread by 30 basis points.”

Over-subscription in government securities can often be read as investors’ confidence in an economy, viewing it as highly stable and creditworthy. The strong global demand means Putrajaya can negotiate a record-low spread (risk premium) and significantly lower its borrowing costs.

Under the final pricing, the 5.75-year tranche was set at 15 basis points over 5-year US Treasuries to yield 4.612 per cent per annum, the reply said.

The 10-year tranche was priced at 25 basis points above 10-year US Treasuries, carrying a yield of 4.949 per cent per annum.