Khazanah likely to issue RM200mil warrants

KHAZANAH Nasional Bhd, the state-owned investment arm, expects to issue RM200mil warrants exchangeable for shares in its profit-making listed companies this month, a company source told AFX-Asia. 

“We are finalising the details and should be able to issue the warrants before the month is out,” the source said. 

The source said that funds raised from the warrants would be used to partially retire debts, as well as for working capital. 

Book runners CIMB Bhd and RHB-Sakura Merchant Bankers would arrange for the warrants to be placed with fund managers and investors, the source added. 

On the basket of shares to be swapped with the warrants to be issued, the source said: “They will be profit-making listed companies.” 

Khazanah's reported substantial holdings in listed companies include a 35.9% stake in Telekom Malaysia, 35.7% in Tenaga Nasional Bhd, 32% in Perusahaan Otomobil Nasional Bhd, 30% in TIME Dotcom Bhd and 23.5% in Malaysia Airports Holdings Bhd. Khazanah, he added, had originally planned to simultaneously issue RM1bil worth of bonds with detachable warrants. 

The state-owned investment arm issued RM1bil 1% five-year 'AAA' rated bonds in March this year to refinance its existing loans. - AFX