Khazanah raises RM100m from second tranche of SRI Sukuk

PETALING JAYA: Khazanah Nasional Bhd has raised RM100 million via a second tranche of the seven-year Sustainable and Responsible Investment Sukuk (SRI Sukuk), the first in the country to feature a retail offering, for continued funding of its Yayasan AMIR trust school programme.
The monies raised will fund the rollout of the programme, which has already reached 83 schools across 10 states, to at least another 20 schools. It has created better outcomes for 65,000 young Malaysians.
YA is a non-profit foundation incorporated by Khazanah to improve accessibility of quality education in Malaysian government schools through a Public-Private Partnership with the Education Ministry.
The SRI Sukuk was issued by a Malaysian-incorporated independent special purpose vehicle, Ihsan Sukuk Bhd and the settlement date of the SRI Sukuk will be on Aug 8, 2017.
The first tranche of RM100 million SRI Sukuk was issued by Ihsan in 2015 under its RM1 billion sukuk programme. The second tranche was launched by Second Finance Minister Datuk Seri Johari Abdul Ghani on June 13, 2017.
The SRI Sukuk is priced at a profit rate of 4.6% if key performance indicators (KPIs) are not met, or 4.2% when KPIs are fulfilled.
These KPIs set the required achievement levels for the number of Trust Schools to be implemented, the performance of teachers and the respective schools’ senior leadership, as well as student outcomes.
“Additionally, the unique step-down returns structure and option to waive the principal of the SRI Sukuk offers investors the possibility of staggered contributions upon meeting the social impact targets of the Trust Schools Programme,” Khazanah said.
Through the retail offering, investors are able to give back to society via impact investing. Khazanah said both the institutional and retail portions were well received and fully subscribed.
Members of the public who were unable to subscribe to the SRI Sukuk can still support the Trust Schools Programme through crowdfunding platforms on ATAPlus (http://ataplus.com/deals/KhazanahSRI) and pitchIN (http://reward.pitchin.my/project/KhazanahSRI). The platforms will be open until Aug 13, 2017.
The SRI Sukuk’s structure is in accordance with the Islamic principle of Wakalah Bi AlIstithmar. CIMB Investment Bank Bhd is the sole lead arranger, while CIMB, Maybank Investment Bank and RHB Investment Bank are the joint bookrunners and joint lead managers for this sukuk issue.