PNB’s inaugural secured exchangeable sukuk offering

PNB’s inaugural secured exchangeable sukuk offering
A&O Shearman has advised Permodalan Nasional Berhad (PNB), one of the largest fund management companies in Malaysia, on the inaugural offering of a USD300 million secured exchangeable sukuk, issued via Lunas Capital II Ltd. (a Labuan‑incorporated special purpose vehicle), with Lunas Capital I Ltd. (a Labuan-incorporated special purpose vehicle), as the obligor.

The zero-coupon five‑year sukuk is exchangeable into ordinary shares of Gamuda Berhad, an engineering, property and infrastructure group with operations across Asia, Australia, and the United Kingdom, with an investor put option exercisable at the end of the third year.

Proceeds from the issuance will be deployed into U.S.‑dollar‑denominated, investment‑grade global sukuk assets, supporting PNB’s portfolio diversification and long‑term asset allocation objectives. This transaction further underscores the development of innovative, Shariah‑compliant financing structures and contributes to the depth and sophistication of Malaysia’s Islamic capital markets. 

 

“PNB’s inaugural secured exchangeable sukuk marks a significant step forward in strengthening their global investment platform and continued commitment to delivering long-term, sustainable value for their stakeholders. We are delighted to have supported PNB on this landmark transaction.”

The A&O Shearman deal team was led from Singapore by partner Aloysius Tan, with support from key team members comprising senior associate Jia Yan Low and trainee Alexander Djanin, and also involved partners Prakash Segaran, James Yao, and Kyungwon Lee, and senior associate Fion Lo across Singapore and Hong Kong on various specialist aspects of the transaction.

Related capabilities