Friday, October 14, 2011

Overwhelming response for Pembinaan BLT RM1.16b Sukuk

KUALA LUMPUR: Pembinaan BLT Sdn Bhd's (PBLT) second Sukuk issuance of RM1.165 billion received overwhelming response from investors during its book building.

PBLT, a unit of the Minister of Finance Incorporated, said on Friday, Oct 14 total orders received from investors reached RM8.0 billion -- a bid-to-cover ratio of 7.0 times -- as investors were comfortable with the credit of PBLT.

The book-building progress was concluded on Thursday evening, a day earlier than planned.

This fund raising exercise was part of PBLT's 25-year Islamic medium term notes programme of up to RM10 billion to be raised by its unit, Aman Sukuk Bhd.

The funds would be used for the nationwide CONSTRUCTION [] of police quarters and facilities under the 'build, lease and transfer' model.

The second series of Sukuk will have a semi-annual profit rate of 3.60% per annum for the three-year tranche, 3.75% per annum for the five-year tranche, 3.95% per annum for the seven-year tranche, 4.10% per annum for the 10-year tranche, 4.25% per annum for the 12-year tranche and 4.45% per annum for the 15-year tranche.

PBLT managing director and chief executive officer Mohammed Redza Mohd Yusof said demand for the IMTNs came from a wide array of investors, including government agencies, financial institutions, fund managers and insurance companies.

'The overwhelming response indicates a strong demand for our Sukuk and brings PBLT closer to achieving its financial plan.

'We are happy with the success of the second IMTN issuance where we have also managed to successfully take advantage of the current low interest rate environment with the assistance from our consultant, Prokhas Sdn Bhd, the joint bookrunners, and all other parties involved in the transaction and issuance,' he said.

The IMTN programme is the long term financing facility matching the expected sub-lease rental payments from the government.

PBLT will use the sub-lease rental payments to redeem the Aman Sukuk IMTN. Based on the superior credit strength of the sub-lease rental payments, the IMTN Programme is rated AAAIS by Malaysian Rating Corporation Bhd (MARC).

'PBLT is also recording high delivery rates with 37 projects completed and another 19 projects to be completed on a sectional basis. Investors can look forward to our next issuance in the coming months,' he added. 'We have crossed the 50% mark as far as project delivery and values are concerned,' he said.


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