Khazanah issues 2nd tranche of Sustainable Sukuk

By NUR HAZIQAH A MALEK

Khazanah Nasional Bhd raised RM100 million for its second tranche seven-year Sustainable and Responsible Investment Sukuk (SRI Sukuk).

The proceeds from the Islamic debt paper will be used to fund the rollout of Yayasan AMIR’s (YA) Trust Schools Programme.

The first tranche of the SRI Sukuk was launched two years ago under Ihsan Sukuk Bhd’s RM1 billion sukuk programme. Ihsan is a special-purpose vehicle for the sukuk issuance.

The second tranche was launched by Finance Minister II Datuk Seri Johari Abdul Ghani in June this year.

YA is a non-profit foundation established by Khazanah to advance quality education in local government schools.

YA’s Trust Schools Programme is in partnership with the Ministry of Education. Khazanah said the programme has helped 83 schools in 10 states and has impacted over 65,000 students.

The schools under the programme are required to achieve certain performance criteria and these institutions are to be measured over a five-year period.

SRI Sukuk which is priced at the profit rate of 4.6%, is based on the Wakalah Bi Al-Istithmar’s Islamic principle, Khazanah said in statement yesterday.

The SRI Sukuk has been well received by retail and institutional shares.

CIMB Investment Bank Bhd (CIBB) is the lead arranger for the Islamic notes with Maybank Investment Bank, RHB Investment Bank and CIBB itself as the joint bookrunners and joint lead managers for the SRI Sukuk’s second tranche.