KUALA LUMPUR: - Khazanah Nasional Bhd has successfully offered and priced a RM100 million seven-year Sustainable and Responsible Investment (SRI) sukuk to be issued via a Malaysian incorporated independent special purpose vehicle, Ihsan Sukuk Bhd.

This issuance is pursuant to Ihsan's RM1.0 billion sukuk programme, the first programme approved under the Securities Commission Malaysia's SRI sukuk framework.

"The sukuk was priced at the price guidance of 4.30 per cent per annum and was fully subscribed through a day of book-building.

"There was participation from a diverse investor group including foundation, corporations, banks, pension fund and asset management companies," the investment holding arm of the government said in a statement today.

Khazanah said the inaugural issuance proceeds would be used to fund schools under the Yayasan AMIR Trust School Programme identified for 2015.

Yayasan AMIR is a not-for-profit foundation incorporated by Khazanah to improve the accessibility of quality education in Malaysian Government schools through a Public-Private Partnership with the Ministry of Education.

The sukuk was launched by the Deputy Prime Minister and Education Minister, Tan Sri Muhyiddin Mohd Yassin on May 18.

Khazanah said the social impact of this 'Pay-for-Success' structure was measured using a set of predetermined key performance indicators which are assessed over a five-year observation timeframe.

The structure of this sukuk is in accordance with the Islamic principle of Wakalah bil Istithmar, which further attests to Khazanah's continued effort to push the envelope on transaction innovation and the positioning for Islamic structures.

CIMB Investment Bank Bhd is the sole lead arranger and sole lead manager, and Amanie Advisors Sdn Bhd and CIMB Islamic Bank Bhd are the joint Shariah advisors for the deal. -- BERNAMA