Khazanah picks 3 banks for US$1b sukuk?

Khazanah Nasional Bhd, Malaysia’s state investment company, selected
three banks to help arrange a sale of as much as US$1 billion of
convertible Islamic bonds, said two people with knowledge of the matter.


The sovereign fund is working with CIMB Group Holdings Bhd, Deutsche
Bank AG and Standard Chartered Plc on a potential offer, said the
people, who asked not to be identified because the information is
private. Khazanah could raise US$500 million to US$1 billion, though a
final decision on whether to proceed has yet to be made, one person
said.


The Shariah-compliant bonds, or sukuk, would be exchangeable into
shares of companies controlled by Khazanah, the people said. The fund
owns about 33 per cent of Tenaga Nasional Bhd, the country’s biggest
power producer, and about 29 per cent of Telekom Malaysia Bhd, data
compiled by Bloomberg show.


It’s also the largest shareholder in telecommunications company Axiata Group Bhd and IHH Healthcare Bhd.






No decision has been made on which companies’ shares would back the
Islamic bond, the people said. Mohd Asuki Abas, a spokesman for
Khazanah, declined to comment in an e-mailed response to questions.--
Bloomberg