By Abigail W. Adams
Portland, Me., Jan. 18 – Khazanah Nasional Bhd. priced $320.8 million in five-year exchangeable sukuks on Thursday with a coupon of 0% and an initial conversion premium of 40%, according to a company release.
Pricing came at the rich end of talk and was oversubscribed 5.5 times during an accelerated bookbuilding process, the issuer said.
The exchangeable sukuks are tied to Citic Securities Co. Ltd.’s H shares and will be issued through Cindai Capital Ltd., an independent special-purpose vehicle.
Citic Securities is China’s largest securities brokerage firm.
CIMB and J.P. Morgan are joint bookrunners for the deal.
Seventy-eight investors from long-only funds, hedge funds, arbitrage funds and asset managers across Asia and Europe subscribed to the deal, according to a company release.
“The strong demand for the exchangeable sukuk underscores investors’ confidence in Khazanah’s creditworthiness,” said Tan Sri Datuk Wira Azman Hj. Mokhtar, Khazanah’s managing director, in the release.
“It was opportune for us to successfully price the deal on the back of positive market sentiments in China and Hong Kong,” he said.
The exchangeable sukuks have a put option exercisable after three years. The sukuks may be settled in cash or shares at the option of the holder, according to the release.
The sukuks will be listed for trade on the Singapore Exchange Securities Trading Limited, Labuan International Financial Exchange Inc, and Bursa Malaysia.
Khazanah is the sovereign wealth fund of the Government of Malaysia.
| Issuer: | Cindai Capital Ltd. (Khazanah Nasional Bhd.)
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| Issue: | Exchangeable sukuk
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| Underlying shares: | Citic Securities Co. Ltd.’s H shares
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| Amount: | $320.8 million
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| Maturity: | 2023
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| Coupon: | 0%
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| Yield: | 0%
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| Initial conversion premium: | 40%
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| Put option: | Three years
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| Bookrunners: | CIMB and J.P. Morgan
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| Pricing date: | Jan. 18
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| Distribution: | Singapore and Malaysia
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| Stock symbol: | HKG:6030
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| Stock reference price: | HK$19.50 at close on Jan. 17
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| Market capitalization: | HK$44.83 billion
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