Malaysia Bond and Sukuk: Quarterly Report 3Q2024

GOVERNMENT BOND AUCTION
Overview
 

The government bond auction for 3Q24 garnered an average BTC of 2.318x, a slight drop from the previous quarter (2Q24: 2.477x). A reopening of MGII 7/29 received the highest BTC at 3.683x. The new/reopening issuances for MGS/GII stood at RM42.00 billion (2Q24: RM39.5 billion).  As of September 2024, the outstanding amount of MGS/GII stood at RM1,193.64 billion (2Q24: RM1,177.66 billion). The market has demonstrated resilience, buoyed by a positive outlook as global bond markets have rebounded following a slowdown in interest rate hikes by the Federal Reserve. In July, foreign investors poured RM5.5 billion into Malaysian bonds, marking the largest monthly inflow in a year, according to data from BNM.

For the upcoming 4Q24, there will be zero (0) new issue and four (4) reopening of MGS. For GII there will be four (4) reopening and zero (0) new issue, totalling to eight (8) reopening.

 

FOREIGN HOLDINGS OF MGS AND GII
Overview 

The foreign net flow to MGS and GII in 3Q24 amounted to RM6.54 billion, RM6.95 billion and –RM0.34 billion respectively in July, August and September as foreign investors turned net buyer. As of September 2024, the total foreign holdings of MGS and GII stood at RM269.22 billion (June 2024: RM256.08 billion), 5.13% increase from the previous quarter.

RM49.57 billion corporate bonds and sukuk were issued in 3Q24 (2Q24: RM42.41 billion), 16.88 % increase from the previous quarter. The non-rated bonds and sukuk were the most issued at RM14.85 billion issuances, followed by AA2/AA/P1/M1 rated bonds at RM13.25 billion issuances. For 3Q24, the largest corporate issuances were issued by CIMB ISLAMIC BANK BERHAD, CIMBI IMTN 4.070% 30.07.2035 - Series 4 Tranche 3 of RM2.17 billion.

RATING OUTLOOK
 

There was zero (0) default and zero (0) downgraded recorded in 3Q24. However, there are four (4) upgraded bonds/sukuk in this quarter.  ⬆️ Upgrade Evyap Sabun Malaysia Sdn Bhd MEX I Capital Berhad DRB-Hicom Berhad Exsim Capital Resources Berhad

 

Source: MARC, RAM and BIX Malaysia

BOND STATISTICS
Overview 

Outstanding Amount by Bond Classes
 

As of September 2024, the outstanding amount of the Government conventional bond and the Government Islamic Bond (Sukuk) stood at RM623.34 billion and RM589.30 billion, respectively. The conventional Quasi-govt outstanding amount stood at RM21.83 billion, much smaller compared to its Islamic counterpart that stood at RM324.62 billion. For corporate issuances, the conventional bond outstanding amounted RM114.04 billion while the corporate Sukuk was recorded higher at RM409.09 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.

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