Name of borrower: KPJ Healthcare
Amount: RM555 million
Tenor: Five, seven, 10 years
Underwriter: HSBC Amanah, OCBC Bank
Date: May 13, 2023
KPJ Healthcare’s RM555 million ($116 million) sustainability sukuk is Malaysia’s Islamic finance deal of the year.
The transaction, which is the first sustainability sukuk in the country, attracted considerable interest. Demand was robust, with the deal being oversubscribed by 11.7 times. The final order book stood at RM5.3 billion, so the deal was upsized from the initial RM450 million to RM555 million. The price tightened by 20 basis points across its five-year, seven-year and 10-year tenors.
This strong response from investors underscores the growing demand for sustainable investments in Malaysia.
HSBC Amanah and OCBC Bank acted as joint lead managers on this transaction.