PUTRAJAYA (March 18): Finance Minister Lim Guan Eng said today the Malaysian government will seriously consider future issuance of yen-denominated or Samurai bonds if the country is able to obtain rates similar to or lower than the 0.63% annual cost achieved for the ¥200 billion (RM7.3 billion) bond issued last month.

"If [the Japanese government] is willing to give similar rates, definitely it will be considered very seriously. When we have funds for development projects, it will free up the other sources of revenue to pay up the (national) debt," Lim said here today at a ceremony to celebrate the Malaysian government's successful issuance of the ¥200 billion Samurai bond.

Lim was responding to questions on whether the Malaysian government has plans to issue more Samurai bonds.

The ¥200 billion bond marks the Malaysian government's return to the yen bond market after a 30-year absence. On March 8 this year, the Finance Ministry said in a statement the Malaysian government successfully priced the ¥200 billion 10-year Japan Bank for International Cooperation (JBIC) guaranteed Samurai bond at the full cost of 0.63% per annum to the Malaysian government.

The Finance Ministry said the issuance process commenced with a two-day investor roadshow in Tokyo on Feb 7 and 8, led by Lim. This was followed by an official marketing exercise from March 4 to 7, according to the ministry.

Today, Ambassador of Japan to Malaysia Dr Makio Miyagawa, who was also present at the ceremony, told reporters that the Japanese government is always ready to help Malaysia issue more bonds in the future if Malaysia would like to do so.

"Of course, at similar rates. We believe the Malaysian government is now moving towards the right direction in reducing debt and cleaning up its tasks. For this purpose, we are very happy to help the Malaysian government and the Malaysian people," Miyagawa said.