Malaysia will sell 2 billion ringgit ($636 million) of Islamic bonds to finance phase one of a mass railway construction in Kuala Lumpur.
Dana Infra, a company formed to fund development projects, could offer 3 billion ringgit if there’s enough demand. Due to Europe’s debt crisis, no exact sale has been fixed. The proceeds will be given to state-owned Mass Rapid Transit Corp. to continue the work of the 156-kilometer (97-mile) railway in Kuala Lumpur, Malaysia. The project is aimed at easing congestion in the capital city, and is scheduled to be completed by 2016.
The government plans to guarantee a total of 8 billion ringgit of Shariah-compliant bonds, and Dana Infra may issue extra 30 billion ringgit of the securities through a 50-year program. In 2011 Malaysian companies issued 75.6 billion ringgit of sukuk and sales total 15 billion ringgit in 2012.