Khazanah issues $600m Singdollar Islamic bond exchangeable to IHH shares

KUALA LUMPUR (Reuters) - Malaysian state investor Khazanah Nasional said on Friday it has issued $600 million in Singapore dollar-denominated Islamic bonds, or sukuk, that can be exchanged for shares in IHH Healthcare.

The issuance, which can be exchanged into IHH shares at a premium of 10 to 17 per cent over the reference share price of 4.19 ringgit (S$1.65), as Khazanah diversifies on its fund-raising strategy.

"The Singapore dollar-denominated exchangeable Sukuk also provides a natural currency hedge for Khazanah towards its Singapore related investments," Khazanah said in a statement.

The Islamic bond or sukuk was priced at the tightest end of the price guidance of -0.25 per cent yield to maturity and 17 per cent exchange premium, according to Khazanah.

Reuters reported on Thurday that Khazanah had offered the Islamic bond to investors, citing a term sheet.

CIMB, Deutsche Bank and Standard Chartered are the bookrunners for the deal.