Khazanah Issues Exchangeable Sukuk of US$ 357.8 Million
The press release states, “Khazanah Nasional Berhad is pleased to announce the successful issuance of a seven-year benchmark exchangeable sukuk of USD357.8 million (“The Sukuk”), via an independent Labuan incorporated special purpose company, Pulai Capital Ltd., exchangeable into the shares of Parkson Retail Group Limited (“Parkson”), one of the largest department store operators in the People’s Republic of China.
The Sukuk was successfully priced through an accelerated book-building process on 14 March 2012, and at the tightest end of the price guidance at -0.25% yield to maturity and 30.0% exchange premium. 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 negative yield which translates to the willingness of investors to pay for participation in this transaction indicates their confidence in Khazanah’s solid credit standing and Parkson’s growth prospects, which is underpinned by the positive outlook of China’s consumption story.”
Read more: Khazanah Nasional Press Release