Saturday, March 17, 2012

Khazanah sukuk

The first convertible sukuk in 2 years was issued by Khazanah Nasional at a yield to maturity of -0.5% and no periodic payments.  The conversion premium into shares of Chinese retailer Parkson Retail Group) for the sukuk was 30%.  Based on today's price of Parkson, was last time the conversion price was seen was at the beginning of 2011.  The sukuk was 3.4 times oversubscribed and priced at the lower end of the expected range. 

Khazanah has issed a few convertible sukuk to divest itself of several holdings including Telekom Malaysia and well as an exchangeable sukuk for PLUS, a company which operates highways in Malaysia (Khazanah also issued a renminbi-denominated sukuk last year).  Both of those sukuk were issued pre-financial crisis (2006 and 2007, respectively).  The pricing for the sukuk and the level of interest (from the oversubscription) indicates that the Malaysian sukuk market (at least those from companies connected to the government) continues to be robust. 

1 comment:

alina said...

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