Khazanah returns with $500m Tenaga exchangeable

Sharia-compliant deal comes back with different set of banks and better terms.
Kuala Lumpur
Kuala Lumpur

Khazanah, Malaysia’s state-owned investment fund, sold a $500 million chunk of its stake in power producer Tenaga Nasional on Wednesday evening through a zero-coupon exchangeable sukuk.

The trade is a re-launch of a June deal, led by JP Morgan and Nomura, that Khazanah pulled after failing to get the price it wanted. That deal was a five-year bullet structure but CIMB, Deutsche Bank and Standard Chartered took charge this time around and opted for a seven-year maturity and four-year investor put or “certificateholder optional dissolution” in the parlance of Islamic exchangeables.

In other words, investors got the put one year earlier than under the original structure...

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