Prasarana's RM1b sukuk gets a boost
Syarikat Prasarana Negara Bhd's RM1 billion Sukuk Ijarah to finance the extension of a light rail network has received overwhelming response from the market.
Yesterday, the public rail and bus transport owner successfully priced the remainder of its RM1 billion in nominal value Sukuk Ijarah, to be issued in two tranches -- a seven-year tranche of RM600 million and a 15-year tranche of RM400 million in nominal value.
In a statement today, it said the government-guaranteed Islamic Medium-Term Notes closed at the lower range of the price guidance, indicating firm buying interest from the investing community for the debt papers.
"We have good demand that encouraged the lower Sukuk Ijarah pricing. Investors' appetite for our high-grade papers is strong.
"That our sukuk is irrevocably and unconditionally guaranteed by the government makes it an attractive investment vehicle to these investors," Group managing director Datuk Seri Shahril Mokhtar said.
The seven-year tranche and the 15-year tranche carry a semi-annual profit rate of 3.78 per cent per annum and 4.56 per cent per annum, respectively.
Government agencies, financial institutions, fund managers, insurance companies and corporate accounts participated in the Sukuk Ijarah offering which was conducted through a one-day book-building process, where total orders tripled to approximately RM3.2 billion.
AmInvestment Bank Bhd, CIMB Investment Bank Bhd, HSBC Amanah Malaysia Bhd and RHB Investment Bank Bhd are the joint lead arrangers and joint book runners for the Sukuk Ijarah.-- Bernama