KUALA LUMPUR: Permodalan Nasional Bhd (PNB) has announced the inaugural launch and pricing of a US$300 million secured exchangeable sukuk, issued through Lunas Capital II Ltd, a Labuan-incorporated special purpose vehicle.
The exchangeable sukuk forms part of the company’s strategy to strengthen portfolio diversification by raising foreign currency proceeds for investment in global assets, especially global sukuk.
President and group chief executive Datuk Abdul Rahman Ahmad said the offering reflects the company’s continued focus on forward-looking and innovative initiatives to ensure its portfolio remains resilient and relevant in an increasingly complex investment landscape.
He added that the exchangeable sukuk allows PNB to unlock value from its domestic equity holdings, mitigate foreign exchange risk and enhance diversification.
The exchangeable sukuk also provides a natural currency hedge against PNB’s exposure to US dollar-denominated global sukuk investments.
“Overall, this move aligns with our commitment to delivering performance with prudence, backed by rigorous governance and robust risk management, ultimately safeguarding long-term value for our unitholders,” he said in a statement.
The sukuk is exchanged for ordinary shares of Gamuda Bhd, an engineering, property, and infrastructure group with operations spanning Asia, Australia, and the United Kingdom.
It has a tenor of five years, featuring an investor put option exercisable at the end of the third year. The sukuk’s credit quality is enhanced by security provided by Lunas Capital in favour of holders of the exchangeable sukuk, comprising the underlying shares and the USD-denominated global sukuk assets.
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Supported by the strong fundamentals of the underlying shares, the exchangeable sukuk was priced with an attractive zero per cent profit rate and yield, alongside an exchange premium of 10 per cent.
PNB said proceeds from the issuance will be invested in investment-grade, US dollar-denominated global sukuk assets, underscoring its commitment to Shariah-compliant investment practices with the use of funds fully aligned to Shariah principles.
It added that the offering attracted strong interest from equity-linked investors, including long-only and multi-strategy funds across Asia and Europe.
The transaction is expected to broaden the landscape of Malaysian globally traded exchangeable instruments and support the growth and liquidity of domestic capital markets.
PNB said this sustained momentum reflects robust demand for Shariah-compliant financing and reinforces Malaysia’s position as one of the largest sukuk markets globally, offering diversified investment opportunities and acting as a cornerstone of the nation’s broader fixed income market.
CIMB and J.P. Morgan acted as joint bookrunners and joint lead managers for the transaction.
-NST
