· Strong bids for new 30y GII benchmark. A solid showing for the maiden issuance of a

Results: GII 5/47 New Issue

·         Strong bids for new 30y GII benchmark. A solid showing for the maiden issuance of a 30y sukuk benchmark GII 5/47 garnering a bid/cover of 2.393x on a slightly smaller than expected MYR2.5b size (MYR2.0b auction + MYR0.5b private placement). The strong bidding interest reflects keen demand for ultra-long sukuk from domestic investors that tend to be the biggest participants in Islamic issues. This new issue extends the government sukuk curve up to 30 years and with a pricing benchmark established, that should encourage issuance of longer tenor corporate sukuk going forward.

·         Successful yields averaged 4.895%, inside the wide pre-auction WI range of 4.93/85%, with the highest yield cutting off at 4.913% and the lowest at 4.850%.

·         Next auction is also a new issue of 10.5y MGS 11/27 which will replace MGS 11/26 as the new benchmark. We estimate a size of MYR4b.

Bid to cover:            2.393

Highest yield:           4.913%

Average yield:         4.895%

Lowest yield:           4.850%

Cut off:                   19%