Linklaters advised the Malaysian government on the issuance of the world’s first sovereign US Dollar sustainability sukuk via the issuance of USD800 million, 10-year trust certificates and USD500 million, 30-year trust certificates.
The law firm also advised Khazanah Nasional, the sovereign wealth fund of Malaysia, on its USD1 billion dual-tranche sukuk issuance.
The joint offering was oversubscribed by 6.4 times, the highest rate achieved by the Malaysian government to date.
Khazanah Nasional’s dual-tranche offering comprised a five-year US$400 million tranche due 2026 and a 10-year US$600 million tranche due 2031.
The sukuk will be issued via a Labuan-incorporated special purpose vehicle, Dua Capital. Labuan is a federal Malaysian territory with an offshore financial centre offering international financial and business services.
The transactions were led by capital markets partners Amit Singh and Jonathan Horan in Singapore, and Jonathan Fried in Dubai, with support from counsel Phill Hall in Singapore.
Singh, who heads the firm’s South and Southeast Asia capital markets practice, said the issuance marked a strong recognition of Malaysia’s capabilities in structuring innovative sukuk in the Islamic finance industry.
Sukuks are financial products with terms and structures that comply with Islamic law to create returns similar to conventional fixed-income instruments like bonds. Sustainability sukuks are issued for social and environmental projects.