SINGAPORE: Khazanah Nasional Bhd, Malaysia’s sovereign wealth fund, has raised a total of US$1bil from a five-year US$500mil sukuk wakalah, or Islamic bond, and a 10-year conventional bond offering, according to term sheet reviewed by Reuters.

The sukuk was priced at a 4.484% yield, with the conventional bond at 4.759%, according to the sheet.

The reoffer spreads were US Treasuries plus 82 basis points and 92 basis points respectively, Reuters said after reviewing the term sheet on Wednesday.

The sukuk was issued under Khazanah Global Sukuk Bhd’s US$5bil multi-currency sukuk issuance programme, while the conventional bond was under Khazanah Capital Ltd’s €10bil medium-term note programme, according to the sheet.

Proceeds from the sukuk will be used to fund syariah-compliant general investments and/or refinancing of borrowings of the wealth fund, the sheet showed.

Proceeds from the conventional bond will be used to fund general investments, refinancing of borrowings and working-capital requirements related to the principal business activities of the wealth fund, according to the sheet.

The issuance was expected to be rated A3 by Moody’s and A- by S&P, the sheet showed.

CIMB, Citigroup, DBS, JPMorgan, MUFG and OCBC were joint bookrunners and joint lead managers for the offering, the sheet showed.

Khazanah did not immediately respond to requests seeking comment yesterday.

 - Reuters