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LFX (Labuan International Financial Exchange) yesterday debuted the primary listing of the world's first Syariah-compliant Exchangeable Trust Certificates (Sukuks) issued by Khazanah Nasional Berhad through its Labuan incorporated Special Purpose Company, Rafflesia Capital Limited. The USD750 million Certificates set a new benchmark as Malaysia's largest exchangeable instrument to be issued out of Asia ex-Japan to date and were six times oversubscribed over the initial issuance that amounted to USD 500 million.
"The listing of this landmark Exchangeable Sukuk on LFX is certainly a significant milestone, both for LFX and for Islamic Capital Market in general. Malaysia has been at the forefront in the innovative structuring of Sukuks and LFX is proud to be part of this innovation. We encourage more issuers, both local and foreign to follow Khazanah's lead and take advantage of the opportunities and benefits that LFX offers for fund raising activities," said the Chairman of the LFX Board, Yusli Mohamed Yusoff, who is also the CEO of Bursa Malaysia Berhad.
"The Exchangeable Sukuk is the 7th Sukuk listed on LFX, bringing the exchange's Islamic Capital Market capitalization to USD2.85 billion. This represents 20% of total market capitalization of US14.2 billion," added Yusli.
The Certificates (Sukuks), due in 2011, are exchangeable into ordinary shares of RM1.00 each in Telekom Malaysia Berhad ("TM"). TM, a company listed on the Main Board of Bursa Malaysia Securities Berhad is the principal provider of telecommunications and related services in Malaysia.
The listing sponsor for the Certificates (Sukuks) is CIMB (L) Limited. UBS Investment Bank is the Global Coordinator while UBS AG, Labuan Branch, The Hongkong and Shanghai Corporation Limited Offshore Banking Unit Labuan and CIMB (L) Limited are the Joint Bookrunners and Lead Managers for the Certificates (Sukuks).
Other financial instruments listed on LFX include open-ended funds, conventional debt securities and exchangeable bonds. LFX is a one-stop offshore exchange that provides full services of approval, listing, trading and settlement of securities and financial instruments.
