Malaysia sovereign fund plans $279 mln "social impact" sukuk

Malaysia's $40 billion sovereign wealth fund Khazanah Nasional plans to issue a sukuk worth up to one billion ringgit ($279.17 million) to help fund schools, its managing director Azman Mokhtar said. The planned "social impact sukuk" is awaiting regulatory approval from Malaysian financial regulators. The move is aimed at opening funding for education to a broad pool of investors rather than financing it out of its own reserves, he added. Mokhtar said a lot of charitable organisations, family offices and trusts wanted to participate in the fundraising and this had helped prompt Khazanah into setting up the sukuk rather than using its own money.