sukuk

 
 

Sukuk instrumental in helping society at large

KUALA LUMPUR: Sukuk, can be instrumental in helping society at large, and in line with promoting the idea of financial inclusion, said Deputy Finance Minister Datuk Amiruddin Hamzah. He said sukuk should be promoted as a financial instrument not only to facilitate the fundraising exercise of corporations for commercial reasons, but also charitable causes. “Companies […]


SC eases retail investors’ access to sukuk, bond market

PETALING JAYA: The Securities Commission Malaysia (SC) has liberalised its regulatory framework to facilitate greater retail access to the RM1.3 trillion bond and sukuk market, which is currently the third largest in Asia and the world's largest sukuk market.

The liberalised framework consists of the new Guidelines on Seasoned Corporate Bonds and Sukuk and amendments to Guidelines on Issuance of Corporate Bonds and Sukuk to Retail Investors, the Guidelines on Sales Practices of Unlisted Capital Market Products, as well as Division 2 of the Prospectus Guidelines, which will come into effect on Oct 11, 2018.

The SC said in a statement today that the liberalised framework will allow a more efficient issuance process for corporate bonds and sukuk to be offered to retail investors.

“Qualified issuers no longer need to make disclosures through a prospectus, and are only required to issue a product highlight sheet. The range of corporate bonds and sukuk that can be offered to retail investors has also been expanded beyond plain vanilla bonds,” it said.

The SC is also introducing a new seasoning framework to enable retail investors to access existing corporate bonds and sukuk that are traded by sophisticated investors in the over-the-counter (OTC) market.

Under this framework, corporate bonds and sukuk that are eligible for retail investment must have been in the market for at least 12 months and have a minimum credit rating of 'A', among other requirements.

In tandem with these measures, distributors of corporate bonds and sukuk in the OTC market are required to observe the sales practices prescribed by the SC.

The regulator noted that the liberalised framework for retail investors is complemented by the centralised online information platform, Bond+Sukuk Information Exchange Malaysia (BIX Malaysia), established by the SC in November 2017.

BIX Malaysia enables investors to obtain information on ringgit bonds and sukuk to assist them in making investment decisions.


Securities Commission announces liberalised regulatory framework for bond, sukuk market

PETALING JAYA, Sept 19 — The Securities Commission Malaysia (SC) has announced the liberalisation of its regulatory framework to facilitate greater retail access to the RM1.3 trillion Malaysian bond and sukuk market. The liberalisation forms part…


MARC affirms AAA rating on Sime Darby Plantation

KUALA LUMPUR, Sept 15 — The Malaysian Rating Corporation Bhd (MARC) has affirmed Sime Darby Plantation Bhd’s (SD Plantation) corporate credit rating at AAA and the company’s Perpetual Subordinated Sukuk Programme (Perpetual Sukuk) of up to…


RAM reaffirms AAA(s) issue rating of Aquasar Capital

KUCHING: RAM Ratings has reaffirmed the AAA(s)/stable rating of Aquasar Capital Sdn Bhd’s (Aquasar Capital) RM1,500 million Sukuk Murabahah Programme (2014/2029). Aquasar Capital acts as a funding conduit of the Sarawak government for the sukuk programme to fund the development of the Kuching Centralised Sewerage System. The operations and maintenance of the sewerage project has […]


IOI Properties raises RM1.2b via third sukuk issuance

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PETALING JAYA: IOI Properties Group Bhd’s wholly-owned subsidiary Fortune Premiere Sdn Bhd has made its third Sukuk Murabahah issuance of RM1.2 billion in nominal value under its Sukuk Murabahah Programme.

Proceeds raised from the third issuance will be utilised for capital expenditure, working capital requirements, refinancing of existing borrowings and general corporate purposes.

The sukuk issuance consists of two tranches with an issue size of RM300 million and RM900 million each. The first tranche of RM300 million has a tenure of five years and 4.85% profit rate per annum, while the second tranche of RM900 million has a longer tenure of seven years and 5.05% profit rate per annum.

The joint lead managers for the third issuance are AmInvestment Bank Bhd, CIMB Investment Bank Bhd, Maybank Investment Bank Bhd and RHB Investment Bank Bhd.

At the noon break, IOI Properties shares were down 4 sen 2.3% to RM1.73 on 110,500 shares done.


Moody’s affirms Petronas’ ‘A1’ rating

PETALING JAYA: Moody's Investors Service which affirmed Petroliam Nasional Bhd's (Petronas) 'A1' rating, today flagged potential changes in government policies for oil and gas sector as credit negative for the group, which is currently being challenged as the sole owner of the country's oil and gas resources.

The Sarawak government is making a play for direct authority over oil and gas resources in the state. In July, the Gabungan Parti Sarawak-led State Assembly passed the Oil Mining (Amendment) Bill 2018 which requires only one licence for exploration, prospecting and mining of oil and gas.

After Petronas failed in June to get the courts to declare it as the sole owner and authority of oil and gas resources in the country, it has been silent on the matter.
The federal government has thus far not weighed in on the issue.

Moody's senior vice-president Vikas Halan said in a statement that potential changes to government's policies for the oil and gas sector could affect Petronas' position as the sole owner of the country's petroleum resources, and increase the royalties paid on its upstream oil and gas production.

“While these changes could be credit negative for Petronas, their implementation will take time and we expect the group to have the financial flexibility to reduce dividends and capital spending to minimise any adverse impact on its credit profile,” Halan said.

Nevertheless, he said Petronas' financial profile and liquidity position are stronger than those of its higher rated global peers, and it thus has a cushion to absorb some deterioration in its credit metrics before its ratings face downward pressure.

Petronas' gross financial leverage, as measured by its total debt/ earnings before interest, taxes, depreciation, and amortisation (ebitda), improved to 0.7 times for the 12 months ended March 2018 from about 1.0 times for 2016.

Moody's said it expects Petronas to maintain its gross financial leverage below 0.8 times-1.0 times for the next two to three years.

The company's total debt/ total capitalisation remains conservative at below 15% as of March 2018 and Moody's expects this to be maintained at 15% to 20% over the next two to three years compared to its downgrade threshold of above 30% to 35%.

The company's net adjusted cash position, which had increased to RM90 billion as of March 31, 2018 from RM42.8 billion on Dec 31, 2016, will likely be maintained at a level of RM80 billion to RM100 billion over the next two to three years based on Moody's current oil price assumption of US$45 to US$65 per barrel through 2019.
Moody's said this also incorporates its expectation of gradual increase in dividends to the government to RM25 billion by 2020.

The rating agency has affirmed the A1 rating on the senior unsecured notes issued by Petronas Capital Ltd, the (P) A1 rating on the US$15 billion (RM61.6 billion) medium-term note programme and the A1 rating on the sukuk issued through Petronas Global Sukuk Ltd.

Moody's said the rating affirmation indicates that the group will maintain its strong operating profile, credit metrics and liquidity as it continues to generate free cash flow in an improved oil price environment and as it nears the end of its capital spending cycle.

Moody's said the stable outlook also reflects its expectation that Petronas will maintain its strong credit profile over the next 12 to 24 months. It further reflects Moody's expectation that the group will continue to adjust its spending on operating and capital expenditure to protect its financial position.

The national oil company's rating is supported by its large-scale hydrocarbon reserves; strong financial metrics; conservative financial policies; and solid liquidity profile.


RAM Ratings places Sarawak Energy’s issue rating on positive outlook

KUCHING: RAM Ratings has revised its ratings on Sarawak Energy Bhd (Sarawak Energy) to positive from stable the outlook on the AA1 rating RM15 billion Sukuk Musyarakah Programme (2011/2036). In a statement, it explained that the positive outlook reflects a strong uptrend in Sarawak Energy’s electricity sales, which if maintained, is expected to lead to […]


Maybank IB named best investment bank for fourth time

KUALA LUMPUR: Maybank Investment Bank Bhd (Maybank IB) was named the best Malaysian investment bank for the fourth time in a row in the Euromoney Awards for Excellence 2018.

According to Euromoney, the accolade has been conferred on Maybank for its strong performance during the period under review.

“Maybank IB had gone from strength to strength as a regional firm that now stands in comparison with all international and regional peers in Asean investment banking and advisory,” said Euromoney.

It noted that the bank is the clear leader in investment banking in Malaysia.

Maybank IB also topped the league tables in ringgit sukuk and conventional bonds.

Euromoney received almost 1,500 submissions from banks for the award programme that covers 20 global awards, more than 50 regional awards, and best bank awards in close to 100 countries.


Maybank IB named best investment bank for fourth time running in Euromoney Awards

KUALA LUMPUR: Maybank Investment Bank Bhd (Maybank IB) was named the best Malaysian investment bank for the fourth time in a row in the Euromoney Awards for Excellence 2018.

According to Euromoney, the accolade has been conferred on Maybank for its strong performance during the period under review.

“Maybank IB had gone from strength to strength as a regional firm that now stands in comparison with all international and regional peers in Asean investment banking and advisory,” said Euromoney.

It noted that the bank is the clear leader in investment banking in Malaysia.

Maybank IB also topped the league tables in ringgit sukuk and conventional bonds.

Euromoney received almost 1,500 submissions from banks for the award programme that covers 20 global awards, more than 50 regional awards, and best bank awards in close to 100 countries.