Khazanah defiant in the face of EB struggles

By Rashmi Kumar
04 Sep 2014

It was second time lucky for Khazanah Nasional this week, as the Malaysian sovereign wealth fund managed to complete a $500m exchangeable sukuk on Wednesday after pulling the same transaction just three months ago. Moving away from a very aggressive stance to slightly more investor-friendly terms helped get the transaction across the line, but it was an uphill battle all the way, writes Rashmi Kumar.

Khazanah's previous attempt in June saw a zero coupon deal marketed at a yield of zero to minus 0.25%. The conversion premium was pitched at 10%-20% over the June 4 closing price of the underlying stock — power company Tenaga Nasional.

Even at the investor-friendly end of ...

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