Issuer: Khazanah Global Sukuk
Obligor: Khazanah Nasional
Size: $750 million
Structure: Sukuk wakalah
Tenor: Five years
Banks: BofA Securities, CIMB, DBS Bank, JPMorgan, Maybank, MUFG and OCBC Bank (joint lead managers and joint bookrunners)
Date: May 2023
As far as debuts in the international sukuk and bond markets go, the $750 million five-year sukuk from Malaysia’s sovereign wealth fund in May last year couldn’t have gone much better.
The transaction, part of a $1.5 billion financing that included a $750 million 10-year bond, was a blowout success, with $11 billion-worth of investor orders being placed for the dual-tranche deal that was the fund’s first international issue in two years and the first to be rated.
Such high demand enabled the banks to shave more than 40 basis points from initial guidance on both tranches, pricing the sukuk at 93bp over Treasuries, paying a coupon of 4.687%. The conventional bond priced at 118bp over Treasuries, paying a coupon of 4.876%.
Khazanah not only re-priced its curve but set a new benchmark in the market, underscoring its recognition as Euromoney’s best sukuk deal in Asia last year.
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