Khazanah issues $482 mln Islamic bond exchangeable to IHH shares

KUALA LUMPUR Thu Oct 17, 2013 10:25pm EDT

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KUALA LUMPUR Oct 18 (Reuters) - Malaysian state investor Khazanah Nasional Bhd said on Friday it has issued S$600 million ($482.14 million) in Singapore dollar-denominated Islamic bonds, or sukuk, that can be exchanged for shares in IHH Healthcare Bhd.

The issuance, which can be exchanged into IHH shares at a premium of 10 to 17 percent over the reference share price of 4.19 ringgit ($1.33), as Khazanah diversifies on its fund-raising strategy.

"The Singapore dollar-denominated exchangeable Sukuk also provides a natural currency hedge for Khazanah towards its Singapore related investments," Khazanah said in a statement.

The Islamic bond or sukuk was priced at the tightest end of the price guidance of -0.25 percent yield to maturity and 17 percent exchange premium, according to Khazanah.

Reuters reported on Thurday that Khazanah had offered the Islamic bond to investors, citing a term sheet.

CIMB, Deutsche Bank and Standard Chartered are the bookrunners for the deal. ($1 = 3.1495 Malaysian ringgit) (Reporting By Yantoultra Ngui; Editing by Niluksi Koswanage)

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