Malaysia wins room for new sukuk

KUALA LUMPUR: Yields on ringgit sukuk have almost halved in two years, giving Prime Minister Datuk Seri Najib Tun Razak the option to refinance debt at cheaper rates as he seeks to cut the budget deficit to a seven-year low.

The yield on the 3.928% 2015 notes has fallen 91 basis points since the end of March 2012 to 1.11% and touched 1.06% on March 3 this year, the least since the debt was sold in 2010, according to data compiled by Bloomberg. Malaysia only has three global bonds outstanding, which are all Islamic, after its last issue of securities that don’t comply with Koranic principles matured in July 2011.