KUALA LUMPUR, April 30 (Reuters) - Khazanah Nasional Bhd , a Malaysian state investor, is planning a new exchangeable Islamic bond or sukuk, IFR reported on Wednesday, citing people with knowledge of the deal.
The deal could be worth up to $1 billion, a source told Reuters on Wednesday. IFR reported that Khazanah suggested the sukuk to be exchangeable into one of its three underlying stocks.
The companies are Malaysia’s largest mobile phone operator by market value, Axiata Group Bhd, the country’s biggest fixed line operator, Telekom Malaysia, and largest electricity utility Tenaga Nasional, IFR added.
“They are still choosing the banks,” the source said, declining to be named as the deal was still private.
Khazanah was not immediately available to comment on the deal.
The deal comes six months after the sovereign wealth fund did a S$600 million zero-coupon sukuk yielding negative 0.25 percent and exchangeable into shares of IHH Healthcare , Asia’s largest hospitals operator, at a premium of 17 percent.
CIMB, Deutsche Bank and Standard Chartered were the bookrunners for the previous deal. (Reporting by Daniel Stanton of IFR and Yantoultra Ngui; Editing by Anand Basu)