Malaysia’s Khazanah plans S$1.5 bln sukuk-sources

by mani on August 4, 2010

Aug 3 (Reuters) – Malaysian state investor Khazanah plans to sell a total of S$1.5 billion ($1.1 billion) sukuk or Islamic bonds in five and 10-year maturities, sources with knowledge of the deal said on Tuesday.

The deal comes a week after Khazanah trumped India’s Fortis Healthcare (FOHE.BO) in a takeover battle for Singapore’s Parkway (PARM.SI) with a general offer that could cost the state firm S$3.5 billion.

Khazanah is selling five-year sukuk at 90-100 basis points above Singapore swap offered rate and 10-year sukuk at 120-130 basis points above the 10-year swap offered rate, sources told Reuters.

A Khazanah spokesman in Kuala Lumpur declined to comment.

The sources could not be identified because the deal has not been made public.

DBS (DBSM.SI), Oversea-Chinese Banking Corp OCBS.SI and CIMB (CIMB.KL) are handling the deal, they said.

(Reporting by Saeed Azhar in SINGAPORE; additional reporting by Razak Ahmad in KUALA LUMPUR; Editing by Raju Gopalakrishnan)

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