First Convertible Islamic Bond Issuance — PNB Expands Its Global Asset Strategy

(Kuala Lumpur, Feb 16) Permodalan Nasional Berhad (PNB) announced its first issuance of US$300 million in secured convertible Islamic bonds, marking a new move to broaden funding channels and diversify its investment portfolio.

In a statement, PNB said the issuance was conducted through Lunas Capital II, a special purpose vehicle (SPV) incorporated in Labuan. The convertible sukuk initiative is positioned as a strategic step to raise foreign-currency funding for investments in global assets—particularly global sukuk markets.

Proceeds earmarked for USD sukuk

PNB added that the instrument is convertible into shares of Gamuda Berhad (GAMUDA, 5398). Proceeds will be allocated specifically to USD-denominated sukuk assets, reinforcing PNB’s commitment to Shariah-compliant investment practices while providing a built-in, natural hedge through foreign-currency exposure.

Building resilience through innovation

PNB President and Group CEO Datuk Abdul Rahman said the institution will continue adopting forward-looking and innovative measures to keep its portfolio resilient and relevant amid increasingly complex market conditions.

The bond has a five-year tenor, includes an investor put option exercisable at the end of year three, and is secured by Lunas Capital. PNB said the issuance is expected to expand Malaysia’s footprint in the global exchangeable/convertible securities space and support growth and liquidity in the domestic capital market.

CIMB and J.P. Morgan acted as joint bookrunners and joint lead managers for the transaction.