The issuance marks Khazanah’s first US dollar-rated sukuk and corporate bond out of its newly established US$5 billion (RM23.12 billion) multicurrency sukuk issuance programme and US$10 billion (RM46.24 billion) euro medium term note programme through its wholly owned special purpose vehicles, Khazanah Global Sukuk Bhd and Khazanah Capital Ltd.
Khazanah’s last issuance was the unrated sukuk of US$1 billion in 2021.
“The transaction had garnered strong demand attracting over 200 investors across Asia, Europe and the Middle-East, with an oversubscription of more than seven times,” Khazanah said in a statement today.
Initially, the securities were launched at an initial price guidance of 135 basis points (bps) over the five-year US Treasury yield and 160bps over the 10-year US Treasury yield, for the five-year sukuk and 10-year conventional bond respectively.
Khazanah said the order book had reached a peak of US$12 billion (RM55.49 billion) which has led the fund to revise the price guidance tighter to 93bps and 118bps, issuing the securities at 4.687% and 4.876% respectively.
The securities will be listed on Bursa Malaysia Securities Bhd under an exempt regime, Labuan International Financial Exchange Inc, and the Singapore Exchange Securities Trading Ltd.
Khazanah managing director Amirul Feisal Wan Zahir said the overwhelming reception of its first ever rated sukuk and bond offerings underline investors’ confidence in Khazanah’s creditworthiness and long-term strategy.
“Investors accept and understand that Khazanah is a strategic investor and an intergenerational fund that can withstand short-term volatility.
“The issuance, which is carried out amidst volatile market conditions, will be the benchmark for Khazanah’s credit as we continue to rebalance our portfolio and strengthen our balance sheet as part of our strategy in advancing the country,” he said.
The proceeds will be utilised for general investments, refinancing of borrowings, and working capital requirements of Khazanah.
BofA Securities, CIMB, DBS Bank Ltd, JP Morgan, Maybank, MUFG, OCBC Bank acted as joint lead managers and joint bookrunners.