Expanding its exposure to global shariah-compliant assets, Permodalan Nasional Bhd has issued a US$300 million secured exchangeable sukuk to strengthen portfolio diversification while managing foreign currency risk.
The exchangeable instrument, which carries a five-year tenor, includes an investor put option exercisable at the end of the third year. It is exchangeable into ordinary shares of Gamuda Bhd, an engineering, property and infrastructure company with operations spanning Asia, Australia and the United Kingdom.
According to PNB, the sukuk was issued through Lunas Capital II Ltd, a Labuan-incorporated special purpose vehicle, with Lunas Capital I Ltd serving as the obligor. The structure is supported by security provided in favour of sukukholders, comprising the underlying shares and US dollar-denominated global sukuk assets.
“The exchangeable sukuk is a strategic initiative designed to strengthen portfolio diversification through the raising of foreign currency proceeds to invest in global assets, particularly in global sukuk,” PNB said in a statement.
Proceeds from the offering will be allocated to investment-grade, shariah-compliant US dollar global sukuk, reinforcing the fund manager’s focus on compliance while broadening its international asset base. PNB noted that the proposed issuance and deployment of funds align with its long-term investment approach and commitment to shariah principles.
PNB president and Group Chief Executive Abdul Rahman Ahmad said the transaction allows the firm to optimise the value of its domestic equity holdings while enhancing diversification.
“The offering of the exchangeable sukuk allows the company to leverage the value of its domestic equity holdings, mitigate foreign exchange risk, and deliver greater diversification in line with PNB’s strategic asset allocation under its LEAP 6 Strategic Plan,” he said.
The sukuk’s credit quality is supported by the strength of the underlying assets, enabling it to be offered with a profit rate and yield of zero per cent, alongside an exchange premium of 10 per cent. PNB said this reflects investor confidence in the fundamentals of the underlying shares and asset structure.
The issuance is expected to contribute to the development of Malaysia’s globally traded exchangeable instruments and support broader capital market depth.
Moreover, CIMB and J.P. Morgan are joint bookrunners and joint lead managers for the transaction.
