Malaysia Bond and Sukuk: Quarterly Report 2Q2024

GOVERNMENT BOND AUCTION
Overview
 

The government bond auction for 2Q24 garnered an average BTC of 2.477x, a slight drop from the previous quarter (1Q24: 2.674x). A reopening of MGII 8/43 received the highest BTC at 3.475x. The new/reopening issuances for MGS/GII stood at RM39.5 billion (1Q24: RM42.0 billion).  As of June 2024, the outstanding amount of MGS/GII was at RM1,177.66 billion (1Q24: RM1,162.16 billion). Domestic demand for Ringgit bonds remains resilient with long durations should continue to be underpinned by local pension funds and life insurance companies, supporting a stay of flat MGS curve at the back end

For the upcoming 3Q24, there will be zero (0) new issue and five (5) reopening of MGS. For GII there will be five (5) reopening and zero (0) new issue, totalling to ten (10) reopening.

 

FOREIGN HOLDINGS OF MGS AND GII
Overview 

The foreign net flow to MGS and GII in 2Q24 amounted to RM1.16 billion, RM4.36 billion and –RM1.14 billion respectively in April, May and June as foreign investors turn net buyer. As of June 2024, the total foreign holdings of MGS and GII stood at RM256.08 billion (March 2024: RM251.69 billion), 1.74% increase from the previous quarter.

RM42.41 billion corporate bonds and sukuk were issued in 2Q24 (1Q24: RM34.04 billion), 24.59 % increase from the previous quarter. The AA2/AA-rated bonds and sukuk were the most issued with RM13.79 billion issuances, followed by AAA-rated bonds at RM8.40 billion issuances. For 2Q24, the largest corporate issuances were issued by PENGURUSAN AIR SPV BERHAD, PASB IMTN 4.070% 03.06.2039 - Issue No. 42 of RM1.08 billion.

RATING OUTLOOK
 

There was zero (0) default and zero (0) upgrades recorded in 2Q24. However, there is one (1) downgraded bonds/sukuk in this quarter. ⬇️ Downgrade YNH Property Berhad

 

Source: MARC, RAM and BIX Malaysia

BOND STATISTICS
Overview 

Outstanding Amount by Bond Classes
 

As of June 2024, the outstanding amount of the Government conventional bond and the Government Islamic Bond (Sukuk) stood at RM619.36 billion and RM580.80 billion, respectively. The conventional Quasi-govt outstanding amount stood at RM22.15 billion, much smaller compared to its Islamic counterpart that stood at RM323.41 billion. For corporate issuances, the conventional bond outstanding amounted RM115.08 billion while the corporate Sukuk was recorded higher at RM403.48 billion.

Disclaimer

This report has been prepared and issued by Bond and Sukuk Information Platform Sdn Bhd (“the Company”). The information provided in this report is of a general nature and has been prepared for information purposes only. It is not intended to constitute research or as advice for any investor. The information in this report is not and should not be construed or considered as an offer, recommendation or solicitation for investments. Investors are advised to make their own independent evaluation of the information contained in this report, consider their own individual investment objectives, financial situation and particular needs and should seek appropriate personalized financial advice from a qualified professional to suit individual circumstances and risk profile.

The information contained in this report is prepared from data believed to be correct and reliable at the time of issuance of this report. While every effort is made to ensure the information is up-to-date and correct, the Company does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information contained in this report and accordingly, neither the Company nor any of its affiliates nor its related persons shall not be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.