Hong Kong’s push to draw Southeast Asian companies and markets into its financing orbit has scored a milestone, with the Malaysian government preparing to list a US$1.5 billion Islamic bond in the international financial centre later this week.
The dual listing – sold on Bursa Malaysia and Hong Kong Exchanges and Clearing (HKEX) – marks the first concrete result of a visit to Kuala Lumpur led by Secretary for Financial Services and the Treasury Christopher Hui Ching-yu last week.
The offering comprised US$850 million of 5.75-year trust certificates and US$650 million of 10-year trust certificates, according to a statement released by Malaysia’s Ministry of Finance.
Strong market demand allowed the Malaysian government to tighten final pricing by 30 basis points from initial guidance, the ministry said on Friday, achieving what it described as “record-low spreads for the country’s sovereign debt”.
The Malaysian certificate offering, expected on Thursday, builds on a regulatory milestone announced on July 23, when HKEX designated Bursa Malaysia as a recognised stock exchange (RSE). This granted it the same status as 20 other global bourses including three in Southeast Asia: Indonesia, Singapore and Thailand.
The move adds to a bustling bond market at HKEX, which has welcomed more than 147 new bond listings this year, reinforcing the exchange’s position as an international fundraising hub.