KUALA LUMPUR, Nov 8 (Reuters) - Retail investors in Singapore and Thailand will soon be able to take part in Malaysia’s largest infrastructure project, as the country’s stock exchange prepares to issue the first tranche of a 1.5 billion ringgit ($492 million) retail Islamic bond or sukuk.
DanaInfra Nasional Bhd, owned by the Ministry of Finance, is scheduled to issue the tranche, a 300 million sukuk, by the end of the month.
It will be the first retail bond to rely on the ASEAN Trading Link, which connects the stock exchanges in Malaysia, Singapore and Thailand. Indonesia, Philippines, Vietnam are set to join the trading link in the near future.
Funds raised by DanaInfra will go towards financing Malaysia’s mass rapid transit project, which aims to ease congestion in the country’s capital.
The publicly funded project was earlier estimated to cost 37 billion ringgit, although more recent projections have put the figure at around 50 billion. ($1 = 3.0490 Malaysian ringgits) (Reporting by Al-Zaquan Amer Hamzah; Editing by David Holmes)