strong-demand-for-khazanahs-third-exchangeable-sukuk

Strong demand for Khazanah's third exchangeable Sukuk

The $550 million bond issue, which is exchangeable into shares of Parkson Retail, was combined with a $96.8 million placement of shares in the same company.

By Anette Jönsson

March 05, 2008

Khazanah Nasional last night raised $646.8 million through a combined sale of Islamic bonds exchangeable into Parkson Retail Group, and secondary Parkson shares. If the five-year bonds with a three-year put are exchanged in full, the sale will result in Khazanah parting with its entire 9.8% stake in the Hong Kong-listed company, which is the largest nationwide department store operator in China.

The bonds made up about 85% of the combined sale, or $550 million, which translates into about 44 million shares after the premium was fixed at the wide end. This left room for the placement to be increased in size from an initial offer of around $70 million plus an upsize option of...

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