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Allen & Overy advises on the USD1billion dual-tranche Sukuk offerings by Khazanah Nasional Berhad

Allen & Overy has advised the joint lead managers and the delegate on the dual-tranche Sukuk offerings of a USD400 million five-year Sukuk and the USD600 million ten-year Sukuk issued by Khazanah Nasional Berhad (KNB) via a Labuan-incorporated special purpose vehicle Dua Capital Ltd.

The Sukuk offerings, each of which is structured under the Shariah principle of Wakalah utilising Shariah-compliant shares and Shariah-compliant commodities, are listed on Bursa Malaysia Securities Berhad (under an Exempt Regime) and the Singapore Exchange Securities Trading Limited.

The Sukuk offerings garnered strong demand across Asia, Europe and the Middle East, resulting in the total order book reaching approximately USD6 billion. Proceeds from the Sukuk issuances are earmarked for general investments, refinancing of borrowings and working capital requirements of KNB which are Shariah-compliant.

The A&O team advising on the transaction was led by partners Aloysius Tan and Tim Beech, and counsel Husayn Reza and senior associate Holly Hart, who are based in Singapore.

Partner Aloysius Tan commented: “We are honoured to have had the opportunity to support Khazanah in its funding activities via the international Islamic capital markets. With an established track record of delivering on Islamic financing solutions for clients in the region and globally, we are excited and privileged to play a part in the continued growth and development of the Islamic capital markets.”

A&O has a market-leading global Islamic finance practice consisting Islamic finance experts across Asia, Europe and the Middle East, and also recently advised the joint lead managers on the offering by the Government of Malaysia of its USD800 million ten-year Sustainability Sukuk due 2031 (the world's first sovereign U.S. Dollar Sustainability Sukuk) and USD500 million 30-year Sukuk due 2051.