Khazanah issues US$358m convertible Islamic bond
KUALA LUMPUR, March 16 — The state investment arm Khazanah Nasional said yesterday it has issued a seven-year sukuk, or Islamic bond, of US$357.8 million (RM1.09 billion) that is exchangeable into shares of Parkson Retail Group Ltd, one of China's largest department store operators.
The bonds were issued at the tightest end of the price guidance of negative 0.25 per cent yield to maturity and 30 per cent exchange premium via an accelerated bookbuilding process on March 14, Khazanah said in a statement issued late yesterday.
The negative yield signals interest in Parkson's growth prospects, which is underpinned by the positive outlook of China's consumption trends, Khazanah said.
"The transaction drew a demand of 3.4 times book size, attracting a diverse group of over 100 investors comprising long-only funds, hedge funds, arbitrage funds as well as asset managers across Asia and Europe," the state investor said.
The sukuk matures in seven years with a put option on the third year with zero periodic payment.
Malaysia's CIMB, Deustche Bank and JP Morgan were the joint bookrunners and joint lead managers on the transaction, Khazanah said. — Reuters