Retail portion of Khazanah’s SRI sukuk oversubscribed

There are currently about 21,000 students experiencing and enriched learning experience in Yayasan Amir Trust Schools.

KUALA LUMPUR: Khazanah Nasional Bhd’s retail offering of up to RM5mil sustainable and responsible investment (SRI) sukuk has been oversubscribed.

The sukuk offering, issued via special-purpose vehicle Ihsan Sukuk Bhd, attracted 139 applications representing 64,810 units; hence the 50,000-unit offering was 1.3 times covered, Malaysian Issuing House Sdn Bhd said in a statement on Friday.

The retail portion is part of the second SRI sukuk tranche of up to RM100mil. A retail portion was added for this tranche to give individual Malaysians the opportunity to invest in a good cause. 

The second tranche would fund the rollout of Yayasan Amir’s (YA) Trust Schools Programme to at least 20 schools. YA is a not-for-profit foundation incorporated by Khazanah in 2010 to improve accessibility of quality education in Malaysian government schools.

The minimum subscription was RM1,000 but individuals could contribute as low as RM10 via reward crowdfunding platforms.

The second tranche, with a seven-year tenure, came two years after the inaugural RM100mil tranche was issued in mid-2015. It was Malaysia’s first SRI bond.

The structure of the SRI sukuk is in accordance with the Islamic principle of Wakalah Bi AlIstithmar.

The retail offering closed on Wednesday and the sukuk will be listed on Bursa Malaysia on Aug 9.

CIMB Investment Bank Bhd is the principal adviser and lead arranger, while it, Maybank Investment Bank and RHB Investment Bank are the joint lead managers.