Malaysia: Linklaters advises on sovereign sukuk

Linklaters was pleased to advise the Malaysian Ministry of Finance, Government of Malaysia, and Malaysia Sukuk Global Berhad on the issuance of USD 1bn trust certificates due 2026, and USD 500m trust certificates due 2046.

“This is an innovative transaction, not least because it’s the first sovereign sukuk to initially involve only non-physical underlying assets,” said Kevin Wong, Partner, Linklaters, Singapore.

Mr Wong said it’s also the first ever sukuk to include entitlements to travel on public transportation as an underlying asset.

“The deal was another demonstration of our capabilities in Islamic finance and capacity to deliver on complex transactions,” Mr Wong added. 
Under the structure, at least 80 per cent of the proceeds will be invested in vouchers representing an entitlement to certain travel units, while the balance will be invested in shares of Pengurusan Aset Air Berhad.

These assets may be replaced by leasable assets at any time during the life of the sukuk.

Linklaters acknowledges the work of Kevin Wong, Hyung Ahn, Phill Hall, and Xavier Amadei in facilitating the transaction.