PLNG2 issues RM1.7b sukuk, oversubscribed by three times


PENGERANG LNG (Two) Sdn Bhd (PLNG2), a 65 per cent-owned subsidiary of Petronas Gas Bhd (PetGas), has successfully concluded the issuance of a 20-year multi-tranche Sukuk Murabahah amounting to RM1.7 billion under its Islamic Medium-Term Notes Programme.

The oversubscription of just over three times reflects the market’s confidence in the company’s credit strength which has been assigned a rating of AAA by the Malaysian Rating Corporation Bhd.

PetGas managing director and chief executive officer Kamal Bahrin Ahmad said the issuance is in line with continued efforts in driving efficient capital management across the PetGas Group.

“We are pleased with the overwhelming response and demand from the investors, underpinned by our robust and sustainable business model despite the current global challenges,” said Kamal Bahrin, who is also PLNG2 chairman.

The proceeds will be utilised by PLNG2 for syariah-compliant purposes, primarily to repay its outstanding US dollar-denominated shareholders’ loans in full, hence there will be no change in PetGas Group’s consolidated borrowings.

The RM1.7 billion sukuk murabahah issuance will not have any effect on the issued and paid-up capital of PetGas and/or the substantial shareholders’ shareholding in the company.

Based on PetGas’ consolidated statement of financial position as at June 30, 2020, there will be no material change in the group’s consolidated gearing.

In addition, the issuance will not have a material impact on the earnings, earnings per share and net assets per share of PetGas Group for the current financial year.

PLNG2 operates the Liquefied Natural Gas (LNG) Regasification Terminal Pengerang (RGTP) in Johor, and PetGas’ second regasification facility after RGT Sungai Udang located in Melaka.

PLNG2’s other shareholders include Dialog LNG Sdn Bhd (25 per cent) and Permodalan Darul Ta’zim Sdn Bhd (10 per cent).