Malaysia state investor Khazanah raises $320.8m in exchangeable sukuk

The Khazanah Nasional office.

Malaysia’s state investor Khazanah Nasional Bhd said on Thursday it has raised $320.8 million through a sukuk that is exchangeable into CITIC Securities Co Ltd’s Hong-Kong listed H-shares.

CITIC Securities, China’s largest securities brokerage firm, will be Khazanah’s eighth exchangeable sukuk offering, with Telekom Malaysia Bhd’s being the inaugural issue in 2006.

The zero-coupon sukuk, to be issued through an independent special purpose vehicle Cindai Capital Ltd, has a tenure of five years and an investor put option after three years.

The sukuk was structured with a zero percent yield-to-maturity and an exchange premium of 40 percent above CITIC’s volume weighted average share price on Wednesday.

“It was opportune for us to successfully price the deal on the back of positive market sentiments in China and Hong Kong,” Khazanah’s Managing Director Azman Mokhtar said.

The sukuk will be listed on the Singapore Exchange Securities Trading Limited, Labuan International Financial Exchange Inc and Bursa Malaysia.

Khazanah said in a statement that the transaction drew a final demand of 5.5 times book size, and 78 investors comprising long only funds, hedge funds, arbitrage funds and asset managers across Asia and Europe subscribed to the sukuk.

CIMB and J.P. Morgan are the joint bookrunners and joint lead managers for the transaction.

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Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.