By Jason Ng 
 

KUALA LUMPUR--Malaysia said Thursday it has sold sovereign Islamic bonds, or sukuk, worth $1.5 billion marking its fourth U.S. dollar denominated global issuance.

The $1 billion 10-year and $500 million 30-year sukuk attracted bids over $9 billion, the Ministry of Finance said in a statement. The 10-year tranche was oversubscribed by almost seven times while the 30-year tranche, the longest maturity ever by a sovereign, was oversubscribed by about six times.

Proceeds from the sale will be used to redeem a $1.25 billion sukuk maturing in June and finance development expenditures, the Finance Ministry said.

The Sukuk are expected to be rated A minus by Standard and Poor's and A3 by Moody's. Malaysia's last global sukuk issuance was in 2011.

CIMB Investment Bank Bhd, Hongkong and Shanghai Banking Corporation Limited, and Standard Chartered PLC (STAN.LN) were the joint bookrunners and managers for the deal.

Write to Jason Ng in Kuala Lumpur at jason.ng@wsj.com

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