Malaysia launches retail bond to fund rail project

KUALA LUMPUR (REUTERS) - DanaInfra Nasional Bhd, a unit owned by Malaysia's Finance Ministry, on Tuesday launched a 10-year Islamic bond worth 300 million ringgit (S$120.8 million) aimed at retail investors to raise funds for the country's largest infrastructure project.

DanaInfra, which was created last year to facilitate funding for large infrastructure projects, will draw the amount from an 8-billion-ringgit bond programme established to cover costs for the planned Mass Rapid Transit (MRT) rail system.

"The bonds launched today represent an opportunity for people to invest in, and profit from, the nation's development,"said Prime Minister Najib Razak at the launch of DanaInfra's bond, the first retail note to be issued on Malaysia's stock exchange.

The first of three lines for the MRT in the capital Kuala Lumpur will span 51 km and be fully operational by July 2017. Project costs for the packages that have been awarded are estimated at 20 billion ringgit.