Khazanah continues to innovate and deepen its pool of Islamic finance products while maintaining a strong balance sheet and sufficient financial safety nets. Innovation and adaptability are central to our capital and liability management strategy.
Since 2005, our fundraising activities have expanded and redefined the landscape of Islamic finance. We structured and issued the first exchangeable sukuk with TM and Axiata in 2006, the first Singapore dollar-denominated sukuk in 2010, and the world’s first Renminbi-denominated sukuk in 2011.
In August 2016, we offered our seventh underlying security via an USD398.8 million Exchangeable sukuk, exchangeable into Beijing Enterprise Water Group shares. The exchangeable sukuk format serves as a funding instrument as well as a means for us to gradually divest the underlying security in a uniform manner over the tenor of the sukuk.
We are prudent in managing our liability and actively match our borrowings with our assets. Khazanah’s capital market activities are strictly driven by investment requirements with the nation’s long-term economic interest in mind. We also have a disciplined approach to divestment enabling us to reinvest monetised value from our portfolio into new sectors and geographies.
Although Khazanah does not receive regular infusions of capital from the Government, we diligently assist the Government to reduce its contingent liabilities. In March 2016, we issued a USD750 million sukuk to refinance Penerbangan Malaysia Berhad’s USD1.0 billion guaranteed notes. In December 2016, we redeemed the first RM2.0 billion Khazanah Government Guaranteed sukuk out of our RM20.0 billion programme. We shall continue the redemption of the sukuk in years to come until the final redemption date in 2032.
Khazanah issued Malaysia’s first Sustainable and Responsible Investment (SRI) sukuk in June 2015. The SRI sukuk combines the concepts of sukuk financing with philanthropy. This is in line with our key philosophy that Islamic finance must be linked to real economic activities, which emphasises socioeconomic development through innovative and fair financial policies and products. Continuing this effort, Khazanah plans to issue the second tranche of SRI sukuk in 2017.
As the world’s biggest Islamic debt market, Malaysia accounts for 46.4% of the total value of global sukuk issuance as at end December 20161. Khazanah, as a key player, together with our investee companies such as Axiata and TNB continue to pave the development of Islamic capital markets by embracing Islamic finance as a preferred method to raise capital.
In a volatile market backdrop, Khazanah’s robust credit standing and strong reputation have been fundamental in preserving our capability to secure competitive funding allowing us to stay on track towards meeting our long-term goals.
US Dollar-Denominated Straight Sukuk
Beijing Enterprises Water Group Limited (BEWG) Exchangeable Sukuk
Most Innovative Islamic Finance
Deal of the Year 2016 in Southeast Asia
Sustainable and Responsible Investment Sukuk (SRI)
Tenaga Exchangeable Sukuk
IHH Healthcare Exchangeable Sukuk
Parkson Exchangeable Sukuk
Islamic Medium Term Notes Issues by Danga Capital Bhd
Islamic Medium Term Notes Issued by Danga Capital Bhd
Multicurrency Islamic Securities Issuance Programme by Danga Capital Berhad
Parkson Exchangable Sukuk
PLUS Exchangeable Sukuk
TM/Axiata Exchangeable Sukuk
SELECTED FINANCIAL INDICATORS
© 2017 Khazanah Nasional Berhad (275505-K)