Malaysia Airports’ World’s First Rated Hybrid Perpetual Sukuk Wins Market Pioneer Award

SEPANG – Malaysia Airports’ financial excellence was acknowledged when it was announced as the winner of “Market Pioneer Award” in the RAM League Award, a testament to the success of Malaysia Airports’ successful RM1.0 billion Perpetual Subordinated Sukuk issued in December 2014. 

This perpetual subordinated Sukuk represents the world’s first-ever rating agency equity content-targeted hybrid Sukuk and the first rated perpetual Sukuk in Malaysia. 

The RAM League Awards recognises the most influential and prominent financial institutions and organisations that are seen as leaders, innovators and visionaries in the domestic bond market and also in their respective industries.

Datuk Badlisham Ghazali, Managing Director of Malaysia Airports said, “We are very proud to receive this award as it is reflective of the innovative approaches that the company takes in conducting its business, be it financially or operationally. Our finance team, especially deserves to be commended for ensuring that this Sukuk programme and its issuance was a success.”

This award represented a premier financial recognition for Malaysia Airports, as the award was reserved for distinctive organisations who are pivotal to the development of Malaysia as a leading Asian bond market. 

The offering which was completed in December 2014 was well-received by a broad range of investors from high quality accounts including government agencies, financial institutions, asset management companies, insurance companies and corporate accounts. The strong demand for the first of its kind instrument in the market is a testimony of the confidence investors have in Malaysia Airports’ credit, operations and business activities.

This programme was initiated in line with Malaysia Airports’ commitment in supporting the Government's relentless efforts to position Malaysia as an international Islamic financial centre. The favourable ratings of AA2 accorded to the Perpetual Subordinated Sukuk programme not only reflected strong fundamentals of Malaysia Airports but also the importance of it being the main operator of the nation's key gateways. 

The success of the issuance has also galvanised Malaysia Airports brand identity as a business driven entity by creating platforms to proactively optimising its capital structure in line with its mission, vision and strategy. It also marked Malaysia Airports’ commitment in enhancing Malaysia’s position as a global Islamic financial hub and solidify its position as a leader in the global Islamic capital markets.