Khazanah Said to Revive Its Offering of World’s First Yuan Islamic Bonds - Bloomberg

Khazanah Nasional Bhd., Malaysia’s state investment company, has started taking orders for the sale of the world’s first yuan-denominated Islamic bonds after an initial delay, according to two people familiar with the matter.

The three-year bonds, which pay returns from assets that comply with religious tenets, may price to yield about 3 percent, said one of the people, who asked not to be identified because the details are private. Average yields on yuan bonds sold in Hong Kong are 28 basis points lower than those on global Islamic notes, according to data from HSBC Holdings Plc.

Khazanah, which controls some of the Southeast Asian nation’s biggest companies including power producer Tenaga Nasional Bhd. and Malaysian Airline System Bhd., planned to sell 500 yuan of Islamic bonds last month, two people familiar with the matter said on Sept 14. Its deferment made sense given the volatility in global financial markets, central bank Governor Zeti Akhtar Aziz said on Sept. 26.

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