Maybank Research: Khazanah Nasional unlikely to privatise UEM Sunrise
KUALA LUMPUR: Khazanah Nasional Bhd's exchangeable Sukuk of USD320.8mil (RM1.27bil), which has a tenure of five years, was oversubscribed by 5.5 times, underscoring investors’ confidence in its creditworthiness.
The sovereign wealth fund said on Thursday the Sukuk which will be issued via a Labuan-incorporated independent special purpose vehicle, Cindai Capital Ltd.
The exchangeable Sukuk would reference the value of H-shares in CITIC Securities Co Ltd (CITIC Securities), China’s largest securities brokerage firm.
Seventy-eight investors subscribed to the exchangeable Sukuk and they comprise long only funds, hedge funds, arbitrage funds as well as asset managers across Asia and Europe.
The exchangeable Sukuk has an investor put option exercisable at the end of year three.
Structured with a zero periodic payment and 0.00% yield to maturity, the exchangeable Sukuk achieved the tightest end of the initial guidance at an exchange premium of 40% above the volume weighted average price of CITIC Securities shares on Wednesday.
Khazanah managing director Tan Sri Azman Mokhtar said it was opportune for the fund to successfully price the deal on the back of positive market sentiments in China and Hong Kong.
The exchangeable Sukuk is structured based on the principle of Wakalah and provides the Sukuk holder with the option to receive cash or shares upon exchange.
CITIC Securities will be Khazanah’s eighth offering in an exchangeable Sukuk format, since the inaugural issue of Telekom Malaysia Bhd
exchangeable Sukuk in 2006.
The various issues have all been successfully implemented, winning multiple international awards over the years.
The exchangeable Sukuk will be listed on the Singapore Exchange Securities Trading Limited, Labuan International Financial Exchange Inc and Bursa Malaysia (under the Exempt Regime).
CIMB and J.P. Morgan are the joint bookrunners and joint lead managers for this exchangeable Sukuk transaction.
Limited time offer:
Just RM5 per month.
