Khazanah Nasional Bhd., Malaysia’s state investment company, may sell as much as $500 million of Islamic bonds, or sukuk, to take over Parkway Holdings, according to two people familiar with the matter.

CIMB Investment Bank Bhd is among banks that may arrange the sale as soon as this month, said one of the people, who asked not to be identified because the discussions are private.

 

Khazanah offered $1.18 billion to more than double its holding in Parkway to gain control of Asia’s biggest hotel operator, Singapore-based Parkway said on May 27. Credit Suisse Group AG recommended that Parkway shareholders accept the offer, which would let Khazanah overtake India’s Fortis Healthcare as Parkway’s largest shareholder with a 51.5% stake.

 

The Kuala Lumpur-based company currently owns 23.2% of Parkway while Fortis has 25.4%, according to data compiled by Bloomberg.

 

Mohd Asuki Abas, a Khazanah spokesman, declined to comment on the company’s funding plans.