KUALA LUMPUR, March 16 Malaysia's state
investment arm Khazanah Nasional said on Thursday it has issued
a seven-year sukuk, or Islamic bond, of $357.8 million that is
exchangeable into shares of Parkson Retail Group Ltd,
one of China's largest department store operators.
The bonds were issued at the tightest end of the price
guidance of negative 0.25 percent yield to maturity and 30
percent exchange premium via an accelerated bookbuilding process
on March 14, Khazanah said in a statement issued late on
The negative yield signals interest in Parkson's growth
prospects, which is underpinned by the positive outlook of
China's consumption trends, Khazanah said.
"The transaction drew a demand of 3.4 times book size,
attracting a diverse group of over 100 investors comprising
long-only funds, hedge funds, arbitrage funds as well as asset
managers across Asia and Europe," the state investor said.
The sukuk matures in seven years with a put option on the
third year with zero periodic payment.
Malaysia's CIMB, Deustche Bank and JP Morgan were the joint
bookrunners and joint lead managers on the transaction, Khazanah
(Reporting by Niluksi Koswanage; Editing by Muralikumar