Permodalan Nasional Bhd (PNB) has issued its first-ever secured exchangeable sukuk, raising US$300 million (approximately RM1.2 billion) to fund investments in global assets. The issuance marks a significant milestone for the state fund manager as it continues to strengthen its investment portfolio and expand its exposure to international markets.
The five-year sukuk is exchangeable into shares of Gamuda Bhd, Malaysia’s largest construction company by revenue. Proceeds from the offering will be allocated to investment-grade global sukuk assets denominated in U.S. dollars, according to PNB. The issuance comes at a time when Gamuda’s share price has reached record highs, making the exchangeable structure particularly attractive.
PNB president and group chief executive Datuk Abdul Rahman Ahmad said the transaction reflects the organisation’s commitment to forward-looking and innovative investment strategies. He noted that such initiatives are aimed at ensuring PNB’s portfolio remains resilient and relevant amid an increasingly complex global investment environment.
The sukuk was issued through a Labuan-incorporated special purpose vehicle, Lunas Capital II Ltd, and was priced at a profit rate and yield of 0%, meaning sukuk holders will not receive periodic cash payments. It carries an exchange premium of 10%, offering investors potential upside through conversion into Gamuda shares.
According to Abdul Rahman, the exchangeable sukuk enables PNB to leverage the value of its domestic equity holdings, manage foreign exchange risk, and achieve greater portfolio diversification. The issuance aligns with PNB’s Strategic Asset Allocation framework under its LEAP 6 Strategic Plan.
PNB manages assets exceeding RM300 billion and holds substantial stakes in several of Malaysia’s leading listed companies, including Malayan Banking Bhd (Maybank). The successful issuance further highlights PNB’s active role in the Islamic capital market and its strategic focus on long-term global investment opportunities.