(Penang, 15th) Member of Parliament for Bagan, Lim Guan Eng, from DAP, stated that Malaysia's 10-year Samurai bonds worth USD 2 billion issued in 2019 may unexpectedly bring approximately RM1.6 billion in gains.
"Even after accounting for all interest paid and to be paid in the future, this is still the case. This is mainly due to foreign exchange gains brought about by the depreciation of the yen against the ringgit."
Lim Guan Eng stated in a press statement that, according to a written reply by the Prime Minister and Finance Minister Datuk Seri Anwar to a question he raised in Parliament on March 2, this Samurai bond totalling about RM7.2 billion was successfully issued in March 2019 with a coupon rate of 0.53% per annum.
"At that time, in March 2019, the exchange rate was 100 yen to RM3.62. By the end of December 2025, the yen has already depreciated to 100 yen to RM2.59."
"According to the arrangement, during the 10-year Samurai bond period which matures in 2029, interest is paid twice a year, in March and September. From 2019 to 2025, over these six years, the total accumulated interest paid amounts to RM239.7 million. Based on the current exchange rate estimate, when the Samurai bonds mature in 2029, the total interest expenditure is expected to be about RM400 million.”
He continued that due to the depreciation of the yen against the ringgit, the principal value of these Samurai bonds has dropped from the original RM7.2 billion at the time of issuance to approximately RM5.2 billion currently. The yen exchange rate has dropped from 100 yen to RM3.62 in March 2019 to RM2.59 by the end of December 2025, a depreciation of 27.8%.
"Using the exchange rate of 100 yen to RM2.59 at the end of 2025, the original principal value of RM7.2 billion will decrease to RM5.2 billion. This means Malaysia will record a foreign exchange gain of about RM2 billion. Even after deducting the estimated total of about RM400 million in interest payments, Malaysia may still enjoy a net gain of around RM1.6 billion."