KUALA LUMPUR: The Minister of Finance Inc's unit Pembinaan BLT Sdn Bhd (PBLT) will issue its second series of RM1 billion sukuk this month, which is part of the overall 25-year plan to raise RM10 billion to build police quarters and facilities under the 'build, lease and transfer' model nationwide..
PBLT said on Wednesday, Oct 5 the fund-raising plan was part of the 25-year Islamic medium term notes programme of RM10 billion to be raised by its unit, Aman Sukuk Bhd.
PBLT managing director and chief executive officer Mohammed Redza Mohd Yusof said the second series issuance process was scheduled to take place soon.
The inaugural series issued on Feb 28 this year received overwhelming response from investors. The sukuk was upsized from RM1 billion to RM1.1 billion.
Total orders received were RM4.36 billion during the two-day book-building period which represents a bid-to-cover ratio of 4.36 times.
It carried a semi-annual profit rate of 3.73% per annum for the three-year tranche, 4.05% per annum for the five-year tranche, 4.23% per annum for the seven-year tranche, 4.55% per annum for the 10-year tranche, 4.75% per annum for the 12-year tranche and 5.05% per annum for the 15-year tranche.
'With the success of our first series, we are upbeat that our second tranche will attract more orders with strong investor appetite and ample liquidity in the market for high-grade papers' said Redza.
He expected a better profit rate from investors for the second series.
The sukuk is the long term financing facility matching the expected sub-lease rental payments from the government.
Under the programme, PBLT will use income from sub-lease rental payments to redeem Aman Sukuk Islamic debt notes.
PBLT would use the proceeds from the debt notes to finance development costs, operating expenses, financing costs and refinance short term financings.
Redza said as at Sept 30, PBLT has completed 37 projects with full completion and 19 projects with sectional completion from the total 74 projects undertaken by the company.
In terms of value, this represents RM3.65 billion from the total development costs of RM7.5 billion, he said.
'With over 50% of our projects completed and delivered, PBLT is firmly on track to complete the balance by end 2014' he added.
PBLT said on Wednesday, Oct 5 the fund-raising plan was part of the 25-year Islamic medium term notes programme of RM10 billion to be raised by its unit, Aman Sukuk Bhd.
PBLT managing director and chief executive officer Mohammed Redza Mohd Yusof said the second series issuance process was scheduled to take place soon.
The inaugural series issued on Feb 28 this year received overwhelming response from investors. The sukuk was upsized from RM1 billion to RM1.1 billion.
Total orders received were RM4.36 billion during the two-day book-building period which represents a bid-to-cover ratio of 4.36 times.
It carried a semi-annual profit rate of 3.73% per annum for the three-year tranche, 4.05% per annum for the five-year tranche, 4.23% per annum for the seven-year tranche, 4.55% per annum for the 10-year tranche, 4.75% per annum for the 12-year tranche and 5.05% per annum for the 15-year tranche.
'With the success of our first series, we are upbeat that our second tranche will attract more orders with strong investor appetite and ample liquidity in the market for high-grade papers' said Redza.
He expected a better profit rate from investors for the second series.
The sukuk is the long term financing facility matching the expected sub-lease rental payments from the government.
Under the programme, PBLT will use income from sub-lease rental payments to redeem Aman Sukuk Islamic debt notes.
PBLT would use the proceeds from the debt notes to finance development costs, operating expenses, financing costs and refinance short term financings.
Redza said as at Sept 30, PBLT has completed 37 projects with full completion and 19 projects with sectional completion from the total 74 projects undertaken by the company.
In terms of value, this represents RM3.65 billion from the total development costs of RM7.5 billion, he said.
'With over 50% of our projects completed and delivered, PBLT is firmly on track to complete the balance by end 2014' he added.
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