PUTRAJAYA is looking at issuing a second tranche of samurai bond, said Prime Minister Dr Mahathir Mohamad.

Funds raised from the bond issue can be used for development, he said.

“Japan is willing to lend at a lower rate than the last time. So we are studying how to use this ‘cheap loan’ to solve some of the country’s financial difficulties,” he said after launching the 5th world tourism conference today in the capital.

In February, the 10-year samurai bond was oversubscribed at 1.6 times or ¥324.7 billion (RM13 billion) over the ¥200 billion.  

Finance Minister Lim Guan Eng said proceeds from the issuance of samurai bonds would be used to fund infrastructure developments, including the construction of schools, hospitals, roads and utilities. 

The lead arrangers for the bond issuance were Mizuho Bank, HSBC Malaysia and Daiwa Securities with the cooperation of Affin Hwang Investment Bank.

Lim said the oversubscription showed confidence in the country’s economy among Japanese financial institutions and investors. – August 26, 2019.