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FINANCE
@ Halal | January-February. 2026
PNB expands sukuk reach
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PNB launched a US $ 300 million secured exchangeable sukuk as part of its strategy to enhance portfolio resilience. Funds raised will be allocated to shariah-compliant global US-dollar-denominated sukuk assets. IILM recorded cumulative sukuk issuance of US $ 22.9 billion in 2025 through 21 auctions involving 69 series.
EXPANDING its exposure to global shariah-compliant a s s e t s, P e r m o d a l a n Nasional Bhd has issued a US $ 300 million secured exchangeable sukuk to strengthen portfolio diversification while managing foreign currency risk.
The exchangeable instrument, which carries a five-year tenor, includes an investor put option exercisable at the end of the third year. It is exchangeable into ordinary shares of Gamuda Bhd, an engineering, property and infrastructure company with operations spanning Asia, Australia and the United Kingdom.
According to PNB, the sukuk was issued through Lunas Capital II Ltd, a Labuan-incorporated special purpose vehicle, with Lunas Capital I Ltd serving as the obligor. The structure is supported by security provided in favour of sukukholders, comprising the underlying shares and US dollar-denominated global sukuk assets.
" The exchangeable sukuk is a strategic initiative designed to strengthen portfolio diversification through the raising of foreign currency proceeds to invest in global assets, particularly in global sukuk," PNB said in a statement.
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CAPITAL MARKET DEVELOPMENT: The transaction is expected to contribute to the growth and liquidity of Malaysia ' s capital markets. |
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Proceeds from the offering will be allocated to investment-grade, shariah-compliant US dollar global sukuk, reinforcing the fund manager ' s focus on compliance while broadening its international asset base. PNB noted that the proposed issuance and deployment of funds align with its long-term investment approach and commitment to shariah principles.
PNB president and Group Chief Executive Abdul Rahman Ahmad said the transaction allows the firm to optimise the value of its domestic equity holdings while enhancing diversification.
" The offering of the exchangeable sukuk allows the company to leverage the value of its domestic equity holdings, mitigate foreign exchange risk, and deliver greater diversification in line with PNB ' s strategic asset allocation under its LEAP 6 Strategic Plan," he said.
The sukuk ' s credit quality is supported by the strength of the underlying assets, enabling it to be offered with a profit rate and yield of zero per cent, alongside an exchange premium of 10 per cent. PNB said this reflects investor confidence in the fundamentals of the underlying shares and asset structure.
The issuance is expected to contribute to the development of Malaysia ' s globally traded exchangeable instruments and support broader capital market depth.
Moreover, CIMB and J. P. Morgan are joint bookrunners and joint lead managers for the transaction.
IILM sets a new high
INTERNATIONAL Islamic Liquidity Management Corporation has extended its momentum in the short-term Islamic money market, with its outstanding sukuk portfolio reaching a record US $ 6.65 billion following strong issuance activity at the start of 2026.
The latest milestone comes after the issuance and reissuance of US $ 965 million in short-term sukuk across one-, three-, six-, and 12-month tenors in IILM ' s second January auction. This lifted month-to-date issuance to US $ 2.2 billion, marking the second-highest monthly total in the corporation ' s history.
The four series were priced at 3.90 per cent for the one-month tenor, 3.92 per cent for the three-month tenor, 3.95 per cent for the six-month tenor, and 3.90 per cent for the 12-month tenor. The auction attracted bids totalling US $ 2.17 billion, translating into an average bid-to-cover ratio of 2.25 times, supported by demand
The outcome reflected sustained investor confidence amid ongoing market uncertainty. from primary dealers and institutional investors across multiple jurisdictions.
Chief executive officer Mohamad Safri Shahul Hamid said the outcome reflected sustained investor confidence amid ongoing market uncertainty.
He explained: " The strong and broadbased demand observed across all tenors reflects investors ' continued preference for high-quality, short-dated Islamic instruments amid ongoing macroeconomic cross-currents, policy uncertainty, and shifting rate expectations.
" This outcome reaffirms the IILM ' s role in supporting effective Islamic liquidity management by providing the market with transparency, certainty, and regular, predictable issuances."
The latest performance builds on a strong 2025, during which IILM issued a cumulative US $ 22.9 billion in sukuk through 21 auctions involving 69 series as at Dec 31. Mohamad Safri said the year marked a turning point for the institution.
" We successfully upsized our sukuk issuance programme to US $ 8.5 billion and recorded a 55 per cent increase in outstanding assets to US $ 6.4 billion, from US $ 4.14 billion at end-2024," he said.
" These achievements reflect strong market demand and the continued commitment and market-making role of our primary dealers, which underpin the depth, resilience and reliability of our offerings and reinforce IILM ' s position as the world ' s largest issuer of short-term Islamic liquidity instruments."
He added that IILM remains focused on expanding its dealer and investor base to support global stability in the Islamic finance market.-