MAHB’s Perpetual Subordinated Sukuk Wins The Asset’s Coveted Best Local Currency Sukuk 2015

By corporatecmsadmin, 11 August, 2024
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MAHB’s Perpetual Subordinated Sukuk Wins The Asset’s Coveted Best Local Currency Sukuk 2015
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SEPANG - Malaysia Airports Holdings Berhad (MAHB or the Company) wishes to announce that its pioneering RM1 billion Perpetual Subordinated Sukuk (Perpetual Subordinated Sukuk) has won The Best Local Currency Sukuk and Best Corporate Hybrid Sukuk at The Asset Triple A Islamic Finance Awards 2015. This win caps a third award for the Perpetual Subordinated Sukuk with earlier honours received from RAM Rating Services Berhad (RAM) and Euromoney. The Perpetual Subordinated Sukuk has set a benchmark for being the world’s first rated hybrid perpetual sukuk and was the largest ever perpetual sukuk issuance by a Malaysian corporate in the capital markets to-date. The Perpetual Subordinated Sukuk received 50% equity credit from both Moody’s and RAM rating agencies as well as 100% equity accounting under prevailing Malaysian accounting standards. The Perpetual Subordinated Sukuk issuance is part of MAHB’s active funding and capital management initiatives, aiming to provide the Company with the most optimal funding matrix. 

The Asset’s Best Local Currency Sukuk recognizes the industry’s best Sukuk transaction in the country. MAHB is proud to be at the forefront of the burgeoning Sukuk market and to support the government’s drive to establish the country as the leading Sukuk market in the world through such revolutionary and innovative structures. 

Datuk Badlisham Ghazali, Managing Director of Malaysia Airports said, “We’re delighted to accept this award. This award is testimony of our commitment to improve our stakeholders’ value through alternative non-dilutive and quasi-equity funding solutions.”

This milestone transaction was structured under the principle of Musharakah or partnership contract. Completed in December 2014, the Perpetual Subordinated Sukuk had culminated with an order book of over RM5 billion. This reflects investors’ confidence in the credit profile of MAHB, the underlying transaction structure and the Lead Managers’ vigorous investor education effort. The transaction was lead managed by CIMB Investment Bank Berhad, Citibank Berhad, HSBC Amanah Malaysia Berhad and Maybank Investment Bank Berhad. The Perpetual Subordinated Sukuk is rated AA2 by RAM, the highest possible issue ratings that can be achieved for perpetual securities with such similar features.

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