Latest news with #SukukWakalah
The Sun
08-07-2025
- Business
- The Sun
Penang delays water tariff hike by 6 months amid RM5b Sukuk launch
GEORGE TOWN: Penang Water Supply Corporation (PWSC) intends to delay a proposed water tariff increase by at least six months, according to Chief Minister Chow Kon Yeow. The decision comes as the National Water Services Commission awaits Cabinet approval for revised rates, which would affect multiple states, including Penang. Chow, who chairs PWSC, noted that the deferment would result in an estimated RM40 million financial impact on the corporation. He shared these details during the launch of PWSC's RM5 billion Islamic Medium-Term Notes (Sukuk Wakalah), a Shariah-compliant financing initiative aimed at funding water infrastructure projects. The Sukuk issuance, rated AAA/Stable by RAM Rating Services Berhad, strengthens PWSC's ability to secure long-term capital while adhering to sustainability principles. The framework also earned a Gold Sustainable Finance Rating from RAV Sustainability Sdn Bhd, reflecting its alignment with environmental and governance standards. Maybank Investment Bank Berhad and United Overseas Bank (Malaysia) Berhad acted as joint advisers and lead managers for the Sukuk. Maybank additionally served as the sole Sustainable Structuring Adviser, ensuring compliance with sustainable finance guidelines. The delay in tariff adjustments allows PWSC to prioritise infrastructure investments without immediate financial pressure on consumers. The move aligns with Penang's broader strategy to balance affordability with sustainable water resource management. - Bernama
The Star
24-06-2025
- Business
- The Star
UOB Malaysia successfully prices Tier 2 Sukuk Wakalah
UOB Malaysia chief executive officer Ng Wei Wei KUALA LUMPUR: United Overseas Bank (M) Bhd (UOB Malaysia) has priced its RM750mil Basel III-compliant Tier 2 subordinated Islamic medium-term notes (Tier 2 Sukuk Wakalah) on June 19. In a statement, the bank said the issuance is part of its RM5bil Sukuk Wakalah Programme, established in January 2024 under the Shariah principle of Wakalah Bi Al-Istithmar. The Tier 2 Sukuk Wakalah, initially targeted at RM500mil, was upsized to RM750mil following strong demand from a diverse group of over 20 high-quality investors, including insurance companies, fund managers, government-linked investment entities, banks, and private banks. UOB Malaysia said the Tier 2 Sukuk Wakalah was fixed at a profit rate of 3.85% per annum, representing a spread of 36 basis points above the seven-year benchmark Malaysian Government Securities (MGS). The Sukuk is scheduled to be issued on July 3, 2025 and matures on July 3, 2037, with an optional redemption on July 2, 2032. "We are pleased that the second tranche of our Sukuk Wakalah programme has been met with such strong investor interest, following the success of our debut issuance last year. 'The upsized issuance reflects continued confidence in UOB Malaysia's credit strength and long-term strategic direction. It also reflects the depth and maturity of Malaysia's Islamic debt capital market, which continues to attract a diverse and high-quality investor base. This outcome affirms both the resilience of Malaysia's financial system and the enduring strength of the country's strong economic fundamentals,' chief executive officer Ng Wei Wei said. Rated AA1 by RAM Ratings, the Tier 2 Sukuk Wakalah qualifies as UOB Malaysia's Tier 2 capital under Bank Negara Malaysia's Capital Adequacy Framework for Islamic Banks. UOB Malaysia and CIMB Investment Bank acted as the joint lead managers for this transaction.
The Star
07-05-2025
- Business
- The Star
Genting Plantations unit issues RM300mil sukuk
KUALA LUMPUR: Genting Plantations Bhd 's wholly-owned subsidiary, Benih Restu Bhd, has undertaken its second issuance of Islamic medium-term notes (IMTN), totalling RM300mil in nominal value, under the RM1.5bil Sukuk Murabahah Programme via Tawarruq arrangement. In a filing with Bursa Malaysia, Genting Plantations said the Sukuk Murabahah issued had a tenure of five years at a profit rate of 3.88% per annum. 'Benih Restu will advance the proceeds from the issuance of Sukuk Murabahah to Genting Plantations and/or any of its subsidiaries (group) via syariah-compliant intercompany advances from Benih Restu to the group,' the oil palm group said. Genting Plantations group will use the proceeds for its operating expenses; capital expenditure; investment; refinancing; working capital requirements; and general funding requirements, among others. Meanwhile, in a separate filing, Genting Plantations said Benih Restu had also undertaken its second issuance of Sukuk Wakalah amounting to RM500mil in nominal value under its RM2bil Sukuk Wakalah programme via Wakalah Bi Al-Istithmar. 'The Sukuk Wakalah programme comprises RM300mil in nominal value with a tenure of seven years, issued at a profit rate of 3.93% per annum, and RM200mil in nominal value with a tenure of 12 years, issued at a profit rate of 4.05% per annum. 'The Genting Plantations group will thereafter apply the proceeds for the syariah-compliant purposes such as operating expenses, capital expenditure, and investment,' the company said. — Bernama
