The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Best sukuk deal: Khazanah Nasional Berhad

Pushing beyond the boundaries


In September, joint lead managers CIMB, HSBC Amanah and UBS launched the first-ever exchangeable sukuk. The landmark deal was designed to enable issuer Khazanah Nasional Berhad to monetize part of its 40% stake in Telekom Malaysia (TM), improve the future liquidity of TM stock and promote Malaysia as the leading centre for Islamic finance outside the Middle East.

Initially targeted to emerge at $500 million, on the back of a successful investor roadshow the deal was more than six times oversubscribed and so was increased to $750 million – making it the biggest ever equity-linked deal from Malaysia and the biggest equity-linked issue out of Asia ex-Japan in 2006. Ronald Leung, head of Asian equity-linked origination at UBS in Hong Kong, says that the issue was structured to have global appeal, with the result that around one-third of the issue sold into the Middle East. Khazanah managing director Datuk Azman Mokhtar says the paper was sold to a mix of banks, asset managers, insurance companies, pension funds, corporates and high-net-worth individuals. Khazanah is the investment holding arm of the Malaysian government.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree