Khazanah Nasional

Khazanah announces RM5 million #sukuk IPO

Khazanah Nasional has announced its initial public offering of a seven-year wakalah sukuk by special purpose vehicle Ihsan Sukuk. The size of the sukuk is RM5 million, has a profit rate of 4.6% per year, and is rated AAA by RAM Rating Services. It is the third tranche of issuance under Khazanah’s RM1 billion Sustainable and Responsible Investment Sukuk programme. The two earlier tranches were used by Khazanah’s not-for-profit foundation, Yayasan Amir, to fund the rollout of its Trust Schools Programme in at least 20 schools. As of June 2017, the foundation’s Trust Schools Programme had been rolled out to 83 schools across 10 states.

Khazanah Said to Weigh $500 Million Exchangeable #Sukuk Sale

Khazanah Nasional, the Malaysian sovereign fund, is considering selling as much as $500 million of exchangeable sukuk. The state-owned firm is currently choosing banks for the potential offering. Khazanah has been reducing stakes in listed Malaysian companies through Islamic debt offerings that can be converted into shares. The fund last sold $500 million sukuk that can be exchanged into shares of Tenaga Nasional, the country’s biggest power producer, in 2014. It is also the largest shareholder of IHH Healthcare, Asia’s biggest hospital operator. Sales of Islamic bonds in Malaysia surged 60% this year to 45.8 billion ringgit ($11.4 billion), while offerings of global sukuk climbed 19% to $28.1 billion.

Khazanah Said to Weigh Insurance Deal With Billionaire Quek

Khazanah Nasional, the $27 billion Malaysian sovereign fund, is weighing a bid for control of the insurance operations of billionaire Quek Leng Chan’s Hong Leong Financial Group. Khazanah is considering an offer for Hong Leong Financial’s 70% stake in Hong Leong Assurance and its 65% holding in Hong Leong MSIG Takaful. The bid could be valued at about 3.2 billion ringgit ($799 million). Hong Leong Financial said last month that Malaysia’s central bank had no objection to the sale of its stakes in the two insurance units.

Khazanah bookbuilds for US dollar 5-year sukuk

Malaysian sovereign wealth fund Khazanah Nasional Berhad is marketing five-year US dollar sukuk in the US Treasuries plus 190bp area. CIMB, DBS and Standard Chartered are lead managers for the deal that is expected to price today. The Reg S senior unsecured bonds will list in Malaysia and Singapore under English and Malaysian law. The sukuk will be issued through Danga Capital Berhad, a special purpose vehicle, with the SWF acting as obligor. They will be issued off a multi-currency Islamic securities issuance programme.

Khazanah hits road for US dollar sukuk

Khazanah Nasional Berhad has mandated Barclays, CIMB, Morgan Stanley and UBS to arrange a series of investor meetings for a US dollar sukuk offering. The roadshow will take place in Dubai on Sunday, Hong Kong on Monday, Singapore on Tuesday and London on Wednesday. The Reg S offering will be unrated and issued off the Multi-currency Islamic Securities Issuance Programme established by Danga Capital Berhad. Danga Capital is a special purpose financing vehicle initiated by Khazanah, the sovereign wealth fund of the government of Malaysia.

Khazanah may sell Bank Muamalat stake post-merger

Khazanah Nasional Bhd may sell its stake in Bank Muamalat Malaysia Bhd only after the latter merged with Malaysia Building Society Bhd (MBSB) to form the country's largest full-fledged Islamic bank. Reiterating that it is not taking the lead in negotiations, Khazanah managing director Tan Sri Azman Mokhtar said the country's strategic investment fund is not particular about the structure of the merger, provided the valuations are fair. It has been reported that the merger would be effected via a share swap. There have been various scenarios bandied about on Khazanah's preferred outcome for its 30% stake in Bank Muamalat. DRB-Hicom Bhd holds the remaining 70% of Bank Muamalat.

Malaysia: Khazanah may offload holding in Bank Muamalat, ahead of merger

State investment fund Khazanah Nasional Bhd is expected to dispose off its entire 30 per cent interest in Bank Muamalat to major shareholder DRB-Hicom Bhd ahead of the proposed merger between Bank Muamalat and Malaysia Building Society Bhd (MBSB) materialises. There is no point holding on to the stake since its holdings would diminish in the merged entity. Moreover, it would not be a problem for DRB-Hicom which already owns 70 per cent interest in Bank Muamalat to purchase Khazanah’s interest. Khazanah managing director Azman Mokhtar had told reporters that it would wait for the outcome of the merger talks before deciding what to do with its stake.

Khazanah to exit in Bank Muamalat merger

Khazanah Nasional Bhd plans to divest its entire 30% stake in Bank Muamalat Malaysia Bhd in the proposed merger between the lender and Malaysia Building Society Bhd (MBSB), sources say. That it plans to sell the entire 30% stake isn’t exactly surprising considering that Khazanah has long made it known that it considers the stake a “non-core holding”, which meant that it was open to letting it go at the right price. Another reason for the planned divestment is that Bank Negara Malaysia is not keen on the government investment arm owning major stakes in more than one bank. It already owns 29.34% in CIMB Group Holdings Bhd.

Khazanah's MD says 'not in a rush' to sell Bank Muamalat stake

Khazanah Nasional Bhd is "not in a rush" to sell its 30% stake in Bank Muamalat Malaysia Bhd, under the proposed merger with Malaysia Building Society Bhd (MBSB). Khazanah's managing director Tan Sri Azman Mokhtar said the Malaysian state-owned investment arm's decision was incumbent upon the negotiated value for its Bank Muamalat stake. He cited the right price and the right configuration as requirements for a sale. DRB-Hicom Bhd holds the balance 70% stake in Bank Muamalat. According to Azman, as Khazanah is only a 30% shareholder in Bank Muamalat, Khazanah is not taking the lead in the merger talks. Khazanah will make a decision based on whatever they decide, he added.

Khazanah debuts ethical Islamic bonds with annual sales planned

Malaysia’s state-owned sovereign wealth fund is about to test appetite for the nation’s first socially responsible Islamic bonds and plans to issue such debt annually. Khazanah Nasional Bhd will start marketing as much as RM150 million (US$42 million) of the seven-year sukuk today, Chief Financial Officer Mohd Izani Ghani said. The offering will fund 20 schools in Malaysia, he said, adding that future sale options may include healthcare and affordable housing. The SRI sukuk will pay fixed, periodical profit rates throughout the bond’s term, with principal repayments linked to the individual school’s performance in terms of the quality of education provided, said Izani. Before maturity, the profit rate will be adjusted lower, he said. The “step-down yield” could be 100 basis points below the coupon rate.

Khazanah Debuts Ethical Islamic Bonds With Annual Sales Planned

Khazanah Nasional Bhd. will start marketing as much as 150 million ringgit ($42 million) of the seven-year sukuk on Monday, Chief Financial Officer Mohd Izani Ghani said. The offering will fund 20 schools in Malaysia, he said, adding that future sale options may include healthcare and affordable housing. While it would be a challenge convincing investors to buy because the concept is new, the offering will be a catalyst for further issuance in an area that’s still nascent. The SRI sukuk will pay fixed, periodical profit rates throughout the bond’s term, with principal repayments linked to the individual school’s performance in terms of the quality of education provided. Before maturity, the profit rate will be adjusted lower, he said.

Khazanah Nasional to launch first social-impact sukuk

Khazanah Nasional is set to issue Malaysia's first social-impact sukuk. Local agency Ram Ratings said the RM1 billion (US$282 million) Sukuk Ihsan programme, to which it assigned a AAA rating last week, was the first social-impact bond to be rated globally. Proceeds will go towards educational projects. Investors and market observers are eagerly expecting the first issuance off the programme as early as next month, although marketing preparations are still being finalised. Socially responsible investment is catching on slowly in Asia, but issuers in South Korea, India and Taiwan have sold so-called Green bonds and interest from investors is growing.

Malaysia sovereign fund plans $279 mln "social impact" sukuk

Malaysia's $40 billion sovereign wealth fund Khazanah Nasional plans to issue a sukuk worth up to one billion ringgit ($279.17 million) to help fund schools, its managing director Azman Mokhtar said. The planned "social impact sukuk" is awaiting regulatory approval from Malaysian financial regulators. The move is aimed at opening funding for education to a broad pool of investors rather than financing it out of its own reserves, he added. Mokhtar said a lot of charitable organisations, family offices and trusts wanted to participate in the fundraising and this had helped prompt Khazanah into setting up the sukuk rather than using its own money.

Khazanah eyes Sukuk issuance in eastern Europe

Khazanah Nasional Bhd is considering the issue of Sukuk or Islamic bonds in Eastern Europe following the opening of its office in Istanbul, Turkey, last November. Executive director and chief financial officer Mohd Izani Ghani said the office was established to tap investment opportunities around Turkey, North Africa and Eastern Europe. He, however, said Khazanah was not planning on issuing a foreign currency Sukuk. There is a push for Khazanah to do 'kebab' sukuk but the interest rate environment in Turkey is on the high side and volatile, he added. The lender wants to do sukuk in other currencies that can match the stable environment, currency and interest rates in the country, he said.

Malaysia’s Khazanah Sells $476 Million Ringgit Islamic Bonds

Khazanah Nasional Bhd., Malaysia’s state-owned investment fund, has sold 1.5 billion ringgit ($476 million) of Islamic bonds. The firm priced the five-year debt to yield 4.14 percent, within its earlier guidance of 4.1 percent to 4.18 percent. The issuance is part of a 7 billion ringgit program to raise funds for corporate purposes. Khazanah will issue the new debt via its unit Rantau Abang Capital Bhd. It’s the second time this year that the company has tapped the ringgit sukuk market after selling 15-year securities in March at a coupon of 5.2 percent. Khazanah is in the process of buying up the 30.6 percent stake in Malaysian Airline System that it doesn’t already own.

Malaysia: Khazanah eyes RM3.3bil sukuk

Khazanah Nasional Bhd is reportedly considering selling as much as US$1bil (RM3.26bil) of dollar-denominated exchangeable sukuk. The state-owned entity is currently choosing banks for the potential offer. The notes will be exchangeable into shares of companies controlled by Khazanah. A decision hasn’t yet been made on which equities will be included in this offering. Khazanah also owns 39% of telecommunications company Axiata Group Bhd, the biggest shareholder. It has about RM103.5bil of assets, including a stake in CIMB Group Holdings Bhd. Khazanah’s sukuk is part of a gradual move to make the Malaysian stock market more liquid. Demand for this exchangeable sukuk is expected to be well-received.

Khazanah gearing for global sukuk expansion

State investment company Khazanah Nasional Bhd is gearing for more innovative investment options to follow its landmark portfolios in the sukuk marketplace. It plans to publish a coffee table book to share its success stories thus far. In recent weeks, Khazanah was in the news when it selected three banks to help arrange a sale of US$1 billion (RM2.98 billion) of convertible Islamic bonds. The Shar iah- compl iant bonds, or sukuk, would be exchangeable into shares of companies controlled by Khazanah. The company has launched innovative sukuk across Asia including the first global sukuk in US dollars, in Singapore dollars and in the yuan exchange. A rough estimate shows that Khazanah has helped raise US$3.5 billion for companies based in Singapore, Malaysia and Hong Kong, among others.

Khazanah Said to Pick 3 Banks for $1 Billion Convertible Sukuk

Khazanah Nasional Bhd., Malaysia’s state investment company, selected CIMB Group Holdings Bhd. (CIMB), Deutsche Bank AG (DBK) and Standard Chartered Plc (STAN) to help arrange a sale of $1 billion of convertible Islamic bonds. Khazanah could raise $500 million to $1 billion, though a final decision on whether to proceed has yet to be made. The sukuk would be exchangeable into shares of companies controlled by Khazanah. No decision has been made on which companies’ shares would back the Islamic bond.

Malaysian sovereign wealth fund reports record gains, acquisition

Khazanah Nasional Berhad, the sovereign wealth fund of Malaysia, reported a 24.3% jump in the net value of its investment portfolio in 2012, a profit before taxes of 2.1 billion ringgit, and a dividend payout to the Malaysian government of 1.0 billion ringgit. Khazanah cited its property development investments in Malaysia as well as initial public offerings by portfolio companies IHH Healthcare Berhad and cable-TV network Astro Malaysia Holdings Berhad as factors contributing to its annual gains. In a separate announcement, Khazanah and Sun Life Financial Inc. announced plans to acquire insurance joint ventures CIMB Aviva Assurance Berhad and CIMB Aviva Takaful Berhad for C$586 million (US$594 million) from Aviva PLC. The deal is expected to close during the first half of 2013.

Sun Life Expands ASEAN Footprint

The Canadian life insurer InSun Life Financial c. (SLF) has forged an alliance with Khazanah Nasional Berhad (Khazanah) to jointly acquire 98% of CIMB Aviva Assurance Berhad, and CIMB Aviva Takaful Berhad. The remaining 2%will be retained by CIMB Group. The bancassurance agreement will cover a span of 20 years and will cost C$586 million. Through this transaction, SLF will be able to expand its international operations in Asia.

Syndicate content