Latest news with #SukukProgramme
The Star
11 hours ago
- Business
- The Star
Bursa Malaysia dips as Trump's 25% tariff on Malaysia rattles investors
From left: Maybank global banking group CEO Datuk John Chong, Maybank Investment Bank Bhd CEO Michael Oh-Lau, Perbadanan Bekalan Air Holdings Bhd group CEO Datuk Ir Pathmanathan K, Penang Chief Minister Chow Kon Yeow, UOB Malaysia CEO Ng Wei Wei and UOB Malaysia head of wholesale banking, northern area centre Teoh Soon Beng. KUALA LUMPUR: United Overseas Bank (Malaysia) Bhd (UOB Malaysia) and Maybank Investment Bank Bhd (Maybank IB) have been appointed as joint principal advisers, joint lead arrangers, and joint lead managers for Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP)'s inaugural RM5bil Islamic Medium-Term Notes (IMTN) Programme (Sukuk Programme). Maybank IB also served as the sole sustainability structuring adviser for PBAPP's new Sustainable Finance Framework, which follows guidelines from the Securities Commission and other regional and international sustainable finance standards. In a joint statement, UOB Malaysia country head of wholesale banking Andy Cheah said the RM5bil sukuk programme will fund critical water projects to ensure long-term water security for Penang, addressing rising demand and challenges such as limited water resources and climate change. 'The sukuk programme also highlights the important role banks play in mobilising capital for sustainable financing and demonstrates how we leveraged our capabilities to deliver real change in public sector infrastructure,' he added. Maybank IB chief executive officer Michael Oh-Lau: 'Maybank is honoured to support PBAPP for the simultaneous establishment of its sukuk programme and Sustainable Finance Framework — a historic first for Penang, and one that sets a strong precedent for other state government-linked companies.' 'Malaysia's debt capital markets remain one of the most developed and liquid in the region, with over RM120bil in private debt securities issued annually coupled with a steady growth of sustainability-labelled issuances year on year. Through this sukuk programme, PBAPP is now well-positioned to benefit from deep and diverse investor liquidity, competitive pricing and greater funding flexibility over time.' Proceeds from the sukuk will fund PBAPP's Water Contingency Plan 2030 (WCP 2030), support capital and operational expenses including refinancing, and finance eligible green and social initiatives under its Sustainable Finance Framework. PBAPP is the first Penang state agency to launch both a sukuk programme and a Sustainable Finance Framework. The shariah-compliant sukuk Wakalah structure allows it to raise sustainable, long-term funding from Malaysia's capital markets. PBAPP's sukuk programme received a AAA/Stable rating from RAM Ratings Services Bhd, reflecting strong credit fundamentals. Its Sustainable Finance Framework also earned a Gold rating from RAM Sustainability for strong governance, transparency, and alignment with global standards.
The Star
11 hours ago
- Business
- The Star
UOB Malaysia, Maybank IB support PBAPP's RM5bil sukuk for water infrastructure
From left: Maybank global banking group CEO Datuk John Chong, Maybank Investment Bank Bhd CEO Michael Oh-Lau, Perbadanan Bekalan Air Holdings Bhd group CEO Datuk Ir Pathmanathan K, Penang Chief Minister Chow Kon Yeow, UOB Malaysia CEO Ng Wei Wei and UOB Malaysia head of wholesale banking, northern area centre Teoh Soon Beng. KUALA LUMPUR: United Overseas Bank (Malaysia) Bhd (UOB Malaysia) and Maybank Investment Bank Bhd (Maybank IB) have been appointed as joint principal advisers, joint lead arrangers, and joint lead managers for Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP)'s inaugural RM5bil Islamic Medium-Term Notes (IMTN) Programme (Sukuk Programme). Maybank IB also served as the sole sustainability structuring adviser for PBAPP's new Sustainable Finance Framework, which follows guidelines from the Securities Commission and other regional and international sustainable finance standards. In a joint statement, UOB Malaysia country head of wholesale banking Andy Cheah said the RM5bil sukuk programme will fund critical water projects to ensure long-term water security for Penang, addressing rising demand and challenges such as limited water resources and climate change. 'The sukuk programme also highlights the important role banks play in mobilising capital for sustainable financing and demonstrates how we leveraged our capabilities to deliver real change in public sector infrastructure,' he added. Maybank IB chief executive officer Michael Oh-Lau: 'Maybank is honoured to support PBAPP for the simultaneous establishment of its sukuk programme and Sustainable Finance Framework — a historic first for Penang, and one that sets a strong precedent for other state government-linked companies.' 'Malaysia's debt capital markets remain one of the most developed and liquid in the region, with over RM120bil in private debt securities issued annually coupled with a steady growth of sustainability-labelled issuances year on year. Through this sukuk programme, PBAPP is now well-positioned to benefit from deep and diverse investor liquidity, competitive pricing and greater funding flexibility over time.' Proceeds from the sukuk will fund PBAPP's Water Contingency Plan 2030 (WCP 2030), support capital and operational expenses including refinancing, and finance eligible green and social initiatives under its Sustainable Finance Framework. PBAPP is the first Penang state agency to launch both a sukuk programme and a Sustainable Finance Framework. The shariah-compliant sukuk Wakalah structure allows it to raise sustainable, long-term funding from Malaysia's capital markets. PBAPP's sukuk programme received a AAA/Stable rating from RAM Ratings Services Bhd, reflecting strong credit fundamentals. Its Sustainable Finance Framework also earned a Gold rating from RAM Sustainability for strong governance, transparency, and alignment with global standards.
New Straits Times
21-05-2025
- Business
- New Straits Times
Axis-REIT lodges RM3bil Sukuk programme for expansion
KUALA LUMPUR: Axis Real Estate Investment Trust's (Axis-REIT) trustee, RHB Trustees Bhd, through its wholly-owned subsidiary, Axis REIT Sukuk Two Bhd, has lodged a Sukuk Programme with the Securities Commission Malaysia with an aggregate nominal value of up to RM3 billion. In a Bursa Malaysia filing today, Axis-REIT said that the Sukuk Programme, based on the Shariah principle of Wakalah Bi Al-Istithmar, allows for the issuance of Senior Islamic Medium Term Notes (Senior Sukuk) and Subordinated Perpetual Islamic Notes (Perpetual Sukuk). "The proceeds to be raised from the Sukuk issuance will be used to, among others, support Axis-REIT's capital and development expenditure, working capital requirements, refinancing its existing or future Islamic financing, as well as other general corporate purposes," it said. Leong Kit May, chief executive officer and executive director of Axis REIT Managers Bhd, the manager of Axis-REIT, said, "We have secured our maiden credit ratings from RAM Ratings Services Bhd, which recognises Axis-REIT's resilient fundamentals and steady growth trajectory over the years. "The Sukuk Programme forms a key part of our prudent capital management strategy as it allows us to diversify our funding sources and optimise financing costs in a disciplined manner," she said. RAM Ratings has assigned long-term ratings of AA2(s) for the Senior Sukuk and A1(s) for the Perpetual Sukuk, both with a stable outlook, reflecting Axis-REIT's strong credit profile and proven operating track record. This also marks a significant milestone for Axis-REIT as it is the first time it has received inaugural credit ratings based on its corporate credit strength.
Trade Arabia
12-02-2025
- Business
- Trade Arabia
Saudi Electricity prices $2.7bn dual-tranche sukuk offering
Saudi Electricity Company (SEC) has announced that it has successfully priced a $2.75 billion dual-tranche senior unsecured RegS Sukuk under its international Sukuk Programme. The issuance consists of two tranches: a $1.25 billion 10-year green Sukuk tranche with a profit rate of 5.489% p.a., maturing on February 18, 2035, and a $1.5 billion 5-year conventional Sukuk tranche, maturing on February 18, 2030, with a profit rate of 5.225% p.a. According to SEC, the green tranche of this offering marks SEC's fourth green sukuk tranche under its Green Sukuk Framework, with proceeds allocated to financing or refinancing eligible green projects in renewables and energy efficiency. Since 2020, SEC has raised a total of $3.75 billion through green Sukuks, reinforcing its commitment to decarbonization and the continued expansion of its eligible green project portfolio. This supports SEC's net-zero ambition by 2050 and aligns with its ESG strategic objective of advancing Saudi Arabia's energy transition in line with Vision 2030, said SEC in a statement. On February 10, SEC held a virtual investor roadshow, attracting strong investor interest from Asia, Europe, and the Middle East. The issuance was successfully priced the following day in an intraday transaction, with the order book exceeding $12 billion, representing an oversubscription of 4.3 times, it added. According to SEC, the company maintains high investment-grade credit ratings from leading international rating agencies: Aa3 (stable) from Moody's, A+ (stable) from Fitch, and A (positive) from Standard & Poor's. On the successful sukuk, Acting CEO Engineeer Khaled Al Ghamdi said: "This issuance reaffirms the company's ability to attract strong investor interest in international markets, supported by its robust credit standing and pivotal role in providing sustainable and highly reliable energy solutions."
