Malaysia's state investment company, Khazanah National BHD is reported to have hired three banks to help it sell Singapore dollar-denominated Islamic bonds.

The Oversea- Chinese Banking Corporation in collaboration with CIMB Investment Bank Bhd will arrange a benchmark sale of five- and 10-year sukuk. Khazanah had reportedly offered $3.5 billion on July 26 2010 for the shares in Singapore’s Parkway Holdings Ltd which had topped a bid from India’s Fortis Healthcare Ltd.The Kuala Lumpur-based group tendered $3.95 a share in cash for 76.1 percent of Parkway to gain Asia’s biggest hospital operator.

Khazanah had reportedly started talks with five banks this month for loans that would help it increase its offer for  Parkway. Shares in Parkway were trading down 1 Singapore cent atS$3.92 as of 1:30 p.m. in Singapore. Islamic bonds, or sukuk,use asset returns to pay investors in compliance with Islam’sban on interest.

As the sukuk Islamic bond industry is set to soar to over $10 billion alone the Islamic financial industry continues to thrive in success. Sukuk is becoming a popular method of Islamic finance and many financial institutions are adopting the Sukuk policies. Sukuk is the Shariah compliant method of bonds and is an Islamic fixed security. There are many Shariah compliant principles to sukuk that need to be udertaken when managing Islamic bonds.

Malaysia's Khazana are a leading investment company that are empowered by the goverment strategic investors and new industries. Khazanah currently has investments in over 50 major companies, both in Malaysia and abroad, and the companies are involved in a broad range of industries which put the Islamic financial sector on the map. The demand for sukuk is increasing daily and investors from around the globe are tapping into the Islamic financial market which is set to grow to $1.5 trillion US dollars by 2012.