Malaysian corporates have announced major sukuk issuances including one by the largest telecommunications group Maxis Bhd and another by the Islamic Development Bank.
Maxis’ unit plans $2.5b sukuk
A unit under telecommunications group Maxis Bhd, Maxis Broadband Sdn Bhd, is planning a sukuk (Islamic bond) issuance to raise as much as MYR10 billion for acquisitions and capital expenditure.
Maxis said, in a Bursa Malaysia filing, Maxis Broadband intends to use the funds raised from the 30-year unrated medium term notes programme to finance the settlement of acquisitions “in relation to the businesses and undertakings, including relevant assets and liabilities” from two other Maxis subsidiaries, namely Maxis Mobile Sdn Bhd and Maxis Mobile Services Sdn Bhd.
Maxis added that it has filed with the Securities Commission Malaysia (SC) for the sukuk programme.
“The sukuk murabahah shall have a tenure of more than one year and up to 30 years as the issuer may select, provided that the sukuk murabahah mature on or prior to the expiry of the unrated sukuk murabahah,” it said.
CIMB Investment Bank Bhd is the sole principal adviser and sole lead arranger for the programme, while CIMB Islamic Bank Bhd is the shariah adviser for the programme.
Islamic Development Bank issues $86.6m sukuk in Malaysia
The Islamic Development Bank (IsDB) has issued a MYR350 million ($86.6 million) sukuk for project financing, and other development activities.
The sukuk wakalah, or entrusted shariah compliant bond, was successfully issued by Tadamun Services Bhd, a special purpose vehicle set up by IsDB to issue such sukuk.
The Sukuk Issuance has the highest credit rating of AAA by Malaysian Rating Corporation Berhad (“MARC”), reflecting the strong credit strength of IsDB.
IsDB president Dr. Ahmad Mohamed Ali said, the successful issuance of sukuk in Malaysian Ringgit is a testimony to the increasing interest for sukuk, and the bank will work with its partners to continue deepening the sukuk market.
IsDB is a multilateral development bank whose shareholders comprise the 57 member countries of the Organisation of Islamic Cooperation (OIC). IsDB promotes economic development in its member countries and Muslim communities in non-member countries.
RHB Investment Bank Bhd, CIMB Investment Bank Bhd and Maybank Investment Bank Bhd were the joint lead managers, joint principal advisers and joint lead arrangers for the sukuk issuance.