The Malaysian units of HSBC Holdings Plc and Mizuho Financial Group, along with Daiwa Capital Markets Ltd – which will work in partnership with Affin Hwang Investment Bank – will be the joint lead arrangers, Lim told reporters.

“The bond is expected to be raised in the next few months,” Lim said, adding that the Japan Bank of International Cooperation would guarantee the bond.

The coupon rate will be no more than 0.65% per annum, he said.

In November, Prime Minister Dr Mahathir Mohamad said the government would issue before March a 200 billion yen samurai bond with low interest rates to pay back some of the “costly” loans taken by the previous administration of Najib Razak.

Since a shock election victory in May, Mahathir has blamed the Najib administration for bringing the government’s total debt and liabilities to over RM1 trillion.

His administration also accused the previous government of deceiving the public and Parliament over the country’s financial situation and state fund 1MDB, which is now the subject of corruption and money laundering investigations in at least six countries.

Najib has since been charged with multiple counts of corruption over 1MDB. He has pleaded not guilty and has consistently denied any wrongdoing.