KUALA LUMPUR (July 15): The government spent a total of RM192.1 million on coupon payments for Malaysia's ¥200 billion (RM7.2 billion) 10-year Samurai bonds as of March 2024, according to the Ministry of Finance (MOF).

The yen-denominated notes, issued in March 2019 during the Pakatan Harapan administration led by former premier Tun Dr Mahathir Mohamad, carry an annual coupon rate of 0.53%, said the MOF.

The bond papers are guaranteed by the Japan Bank for International Cooperation (JBIC) at a guarantee fee of 0.1% per year, bringing the total annual cost to 0.63%.

"Samurai bond coupons are paid twice a year, every March and September, and are subject to the exchange rate on the day of the transaction. For the period from September 2019 to March 2024, the government has spent a total of RM192.1 million on coupon payments," MOF said in a written parliamentary reply to Lim Guan Eng (Pakatan Harapan-Bagan). Lim was the finance minister when the bond was issued.

The MOF added that the ringgit's appreciation against the yen since March 2022 had resulted in lower Samurai bond interest payments from March 2022 to March 2024 compared to the previous period.

"As of the end of March 2024, the bond valuation has decreased to RM6.26 billion, based on an exchange rate of RM3.1308 per 100 yen," it said.

MOF stressed that the government will continue to fulfill its interest payment obligations until the bond matures in March 2029, when the principal amount of ¥200 billion will also be repaid.  

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