Labuan, Friday, 14 March, 2008. Labuan International Financial Exchange Inc. (LFX), listed the 3rd Exchangeable Sukuk by Khazanah Nasional Berhad. The USD550 million exchangeable trust certificates were issued via its Labuan incorporated special purpose vehicle, Paka Capital Ltd.

The sukuk, due in 2013, is exchangeable into ordinary shares of Parkson Retail Group Limited (“Parkson”), a company listed on the Stock Exchange of Hong Kong and the largest department store operator in the People’s Republic of China. This issuance is Khazanah’s first sukuk exchangeable into a stock listed outside Malaysia. It is unique in allowing sukuk holders to have Khazanah’s credit as downside protection while enjoying the benefits of the favourable Chinese retail consumption growth potential.

Commenting on the sukuk issuance by Khazanah, LFX Board Member, Dato’ Yusli Mohamed Yusoff said, “We encourage more issuers, both local and foreign, to follow in Khazanah’s footsteps and take advantage of the opportunities and benefits that LFX can offer for capital and fund raising activities.”

The net proceeds raised from the sukuk offering and Placement of approximately USD647 million will be used as additional working capital and for other general corporate purposes relating to Khazanah’s principal business activities.

The listing sponsor for the sukuk is CIMB Bank (L) Limited whilst Deutsche Bank AG, Labuan Branch acted as the Global Coordinator. CIMB Bank (L) Limited, Deutsche Bank AG, Labuan Branch and UBS AG, Labuan Branch are the Joint Bookrunners and Joint Lead Managers. AmInternational (Labuan) Ltd is also a Joint Lead Manager.