Have you ever wondered how the Malaysian government plans to finance its stimulus package as well as its fiscal deficit?
Well…
KUALA LUMPUR: The RM2.5bil Sukuk Simpanan Rakyat government bond launched Tuesday is all snapped up. [RM2.3bil Sukuk bonds snapped up in 2 days. The Star. April 17 2009]
How about borrowing from PNB?
Permodalan Nasional Bhd (PNB), the country’s biggest fund manager managing RM76 billion worth of funds, will offer 3.33 billion new units of Amanah Saham Malaysia (ASM) and two billion Amanah Saham Wawasan 2020 (ASW 2020) units, Prime Minister Datuk Seri Najib Tun Razak announced today. [PNB offers 5 billion unit trust. Bernama via The Sun. April 20 2009]
Show me the money!!!
Malaysia: The government will today auction 4 billion ringgit ($1.1 billion) of Shariah-compliant bonds maturing in 2012. Bidding closes at 11:30 a.m. local time. The securities yielded 3 percent in pre-auction trading yesterday. Industrial production in February fell for a sixth month, declining 14.7 percent from a year earlier, a government report showed yesterday.
The yield on the 5.094 percent note maturing in April 2014 slipped one basis point to 3.66 percent, according to Bursa Malaysia Bhd. [China, Malaysia, South Korea, Thailand: Asia Local Bond Preview. Lilian Karunungan. Bloomberg. April 10 2009]
Oh, oh, oh…
The issuance of government bonds is expected to leapfrog by 80% this year to a gross amount of RM90bil. [Issuance of govt bonds expected to jump to RM90bil. Yap Leng Kuen. The Star. April 20 2009]
Are you keeping track?
One reply on “[1956] Of somebody is raising some money”
Question 1: Who is the biggest buyer of these bonds
Answer : look at the rates of the bond being “snapped up”, the identity of the big buyer are obvious.
Question 2: Will real investor waste their “bullet” on such low yield bond?
Answer : roll your eye and keep your finger crossed. :p