Khazanah completes S$600m sukuk offering
KHAZANAH Nasional Bhd has announced the completion of a benchmark exchangeable sukuk offering of S$600 million (RM1.524 billion) via Sabah-based Indah Capital Ltd.
The sukuk, which was upsized from the initial size of S$500 million, is exchangeable into ordinary shares of IHH Healthcare Bhd (IHH), one of the largest healthcare providers in the world by market capitalisation.
Khazanah managing director Tan Sri Azman Mokhtar said for the first half of this year, IHH's Singapore operations contributed about 35 per cent and 30 per cent of IHH Group's revenue and earnings before interest, taxes, depreciation and amortisation, respectively, in Singapore dollars, providing a natural currency link to the sukuk's underlying stock.
"The success of this transaction further reinforces Malaysia's position as the global centre and market leader in Islamic Finance.
"Islamic finance has become an indispensable part of the global financial system and Malaysia is at the forefront of this dynamic market, continuously pushing the boundaries in product innovation and market depth," Azman said yesterday.
This issuance is in line with Khazanah's fund-raising strategy and long-term commitment towards progressive divestment of its investments.
The sukuk has a tenure of five years with an investor put option, which is exercisable at the end of the third year.
Upon the exercise of the exchange rights under the sukuk, its holders will initially be entitled to receive an aggregate of 311.4 million ordinary shares of IHH, subject to adjustments pursuant to the terms and conditions of the sukuk.
The Singapore dollar-denominated exchangeable sukuk also provides a natural currency hedge for Khazanah towards its Singapore-related investments. Bernama