Khazanah Nasional Bhd., Malaysia’s sovereign wealth fund, agreed to $1.85 billion in loans to part-finance its offer for Parkway Holdings , according to three people with knowledge of the matter.

Australia & New Zealand Banking Group, CIMB Group Holdings Bhd., DBS Group Holdings, Oversea-Chinese Banking Corp., United Overseas Bank, Malayan Banking Bhd., HSBC Holdings Plc and BNP Paribas SA will lend to the Kuala Lumpur- based company, the people said, asking not to be named because the deal is private.

 

The facility has a three-year maturity, two of the people said. It pays interest of 125 basis points more than the Singapore dollar swap offer rate, one of the people said. A basis point is 0.01 percentage point.

 

Khazanah said on July 26 that it offered $3.5 billion for the shares in Singapore-based Parkway that it doesn’t already own, topping a bid from India’s Fortis Healthcare. It raised $1.5 billion yesterday from five- and 10-year Islamic bonds in the city state’s largest sale of the securities.

 

Asuki Mohd Abas, a spokesman for Khazanah, declined to comment on the company’s financing arrangements.

 

Kahazanah’s non-recourse loan is through Integrated Healthcare Holdings, the unit that’s making the Parkway bid, one of the people said today. Integrated Healthcare has pledged Parkway shares as collateral, they said.