TERM SHEET FOR THE BONDS

1. Name of Issuer

Khazanah Nasional Berhad (“Khazanah” or “Company”)

2. Background of Issuer

(a) Business registration number

275505-K

(b) Date and place of incorporation

3 September 1993, Malaysia

(c) Date of listing

Not applicable

(d) Status

Resident-controlled company

(e) Principal activities

The principal activity of Khazanah is that of investment holding.

(f) Board of Directors (as at 15 January 2003)

Name Designation

Dato’ Seri Dr Mahathir bin Mohamad Chairman

Tan Sri Dato’ Dr Samsudin bin Hitam Director

Tan Sri Dato’ Dr Zeti Akhtar Aziz Director

Datuk Wira Iskandar Dzakurnain bin Badarudin Director

Mohammad Nizar bin Idris Director

Che Khalib bin Mohamad Noh Director

Datuk Abu Hassan bin Kendut Director /

Executive Committee Chairman

Tan Sri Dato’ Nor Mohamed bin Yakcop Director

Tan Sri Dato’ Mohd Sheriff bin Mohd Kassim Managing Director

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TERM SHEET FOR THE BONDS

(g) Shareholders and shareholding structure (as at 15 January 2003)

Name of shareholder No. of ordinary shares % of issued and paid-

of RM1.00 each up share capital

Minister of Finance 3,063,458,943 100.0

Pesuruhjaya Tanah Persekutuan 1 negligible
3,063,458,944 100.0

(h) Authorised and paid-up capital (as at 15 January 2003)

No. of shares Par value Total

(RM) (RM)

Authorised
Ordinary shares 6,000,000,000 1.00 6,000,000,000

Issued and paid-up

Ordinary shares 3,063,458,944 1.00 3,063,458,944

3. Name of Joint Advisers

♦ RHB Sakura Merchant Bankers Berhad (Company No: 19663-P)

♦ Commerce International Merchant Bankers Berhad (Company No: 18417-M)

4. Type of instrument

Bonds

5. Principal

Conventional

6. Facility description

Fixed rate unsecured redeemable bonds

7. Issue size

Nominal amount of up to RM1,000,000,000

8. Issue price

Discounted

9. Tenure of issue

5 years from date of issue

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TERM SHEET FOR THE BONDS

10. Coupon rate

Indicative rate of 1% per annum

11. Coupon payment frequency and basis

Semi-annually in arrears, on the basis of a year of 365 days and the actual number of days elapsed

12. Security (if any)

None

13. Name of Guarantor

None

14. Name of Trustee

PB Trustee Services Berhad

15. Details on utilisation of proceeds

Khazanah proposes to utilise the aggregate net proceeds arising from the Proposed Bonds Issue, after
setting-off estimated related expenses of approximately RM10.5 million, to part refinance its existing
loan facilities, as set out below:

Part refinance its existing loan facilities Up to RM989.5 million

Defray estimated expenses relating to the Proposed Bonds Issue RM10.5 million
Total Up to RM1.0 billion

Details of Khazanah’s loan facilities as at 15 January 2003 are as follows:

Lender Facility amount Maturity date

(RM’mil)

Employees Provident Fund 2,500 26 March 2003 *

1,000 20 March 2003 #
500 3 July 2003 #

Kumpulan Wang Amanah Pencen 1,300 25 March 2003 *

Notes:
* Extendable by a further period of 6 months
# Extendable by a further period of 12 months

16. Sinking fund

None

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TERM SHEET FOR THE BONDS

17. Rating

(a) Credit rating assigned

Long-term credit rating of AAA

(b) Name of rating agency

Rating Agency Malaysia Berhad

18. Form and denomination

The Bonds shall be issued in accordance with (1) the “Code of Conduct and Market Practices for the
Malaysian Corporate Bond Market” issued by the Institut Peniaga Bon Malaysia and approved by
BNM, (2) the “Rules on the Scripless Securities” under the Real Time Electronic Transfer of Funds and
Securities (“RENTAS”) system issued by BNM and (3) the “Rules on Fully Automated System for
Issuing / Tendering” (“FAST”) issued by BNM, or their replacement thereof applicable from time to
time. The Bonds shall be represented by a global certificate to be deposited with BNM, and is
exchanged for definitive bearer form only in certain limited circumstances. The denomination of the
Bonds shall be RM0.01 and multiples thereof

19. Mode of issue

Private placement on a book-building basis

20. Name of Facility Agent

Commerce International Merchant Bankers Berhad (Company No: 18417-M)

21. Name of Syariah Adviser (applicable to Islamic PDS)

Not applicable

22. Selling restrictions

The Bonds may only be offered, sold, transferred or otherwise disposed of, directly or indirectly, to a
person to whom an offer or invitation to subscribe for the Bonds and to whom the Bonds are issued
would fall within Schedule 2 or Section 38(1)(b), Schedule 3 or Section 39(1)(b) and Schedule 5 or
Section 66(3) as defined in the Securities Commission Act, 1993 as amended from time to time
(“SCA”).

Thereafter, the Bonds may only be offered, sold, transferred or otherwise disposed of, directly or
indirectly, to a person to whom an offer or invitation to purchase the Bonds would fall within Schedule
2 or Section 38(1)(b) of SCA and Schedule 5 or Section 66(3) of the SCA.

23. Listing status

Non-listed

24. Minimum level of subscription

80% of the nominal value of the Bonds

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TERM SHEET FOR THE BONDS

25. List of Primary Subscriber(s)

None, as the Bonds shall be issued to investors directly by way of private placement via a book-
building process

26. Other regulatory approvals

Save for the approval of the SC, no other regulatory approval is required.

27. Information

(a) Principal terms and conditions

Attached as Appendix II of this submission.

(b) Latest audited accounts

Attached as Appendix V(b) of this submission.

28. Additional information for Islamic PDS (if applicable)

Not applicable