Malaysia's Khazanah raises $1 bln from sukuk, conventional bond offering

SINGAPORE, Aug 29 (Reuters) - Khazanah Naisonal Bhd , Malaysia's sovereign wealth fund, has raised a total of $1 billion from a five-year $500 million sukuk wakalah, or Islamic bond, and a 10-year conventional bond offering, according to term sheet reviewed by Reuters late on Wednesday.

The sukuk was priced at a 4.484% yield, with the conventional bond at 4.759%, according to the sheet. The reoffer spreads were Treasuries plus 82 basis points and 92 basis points respectively, the sheet showed.

The sukuk was issued under Khazanah Global Sukuk Bhd's $5 bilion multicurrency sukuk issuance programme, while the conventional bond was under Khazanah Capital Ltd's $10 billion euro medium-term note programme, according to the sheet.

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

Proceeds from the conventional bond will be used to fund general investments, refinancing of borrowings and working capital requirements relating to the principal business activities of the company, 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 (C/PN), DBS, JPMorgan (JPM) , 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 on Thursday.

Khazanah in May last year raised a total of $1.5 billion from a $750 million five-year sukuk bond and a $750 million 10-year senior unsecured fixed rate bond. The offerings were the first investment grade deal in Malaysia in two years. (Reporting by Yantoultra Ngui; Editing by Sonia Cheema)