CORP BRIEF: IWCity, Ducth Lady and international sovereign sukuks

IWCity to raise RM40m via private placement

ISKANDAR Waterfront City Bhd (IWCity) has announced plans to undertake a private placement to raise up to RM40.2 million for working capital and payment of its contractors, suppliers and creditors. The company, in a bourse filing yesterday, stated the proposed share placement exercise entails an issuance of 83.74 million shares, equivalent to 10% of IWCity’s total number of issued shares, at an issue price of 48 sen per share. Upon completion of the proposed placement, 68-year-old entrepreneur Ong Yoong Nyock will become a substantial shareholder of the company. Ong is expected to subscribe 53.57 million shares in IWCity for a consideration of RM25.71 million. — TMR

Dutch Lady to build new production facility

DUTCH Lady Milk Industries Bhd (DLMI), currently the subsidiary of Dutch-based Royal FrieslandCampina NV (RFC), has contracted Royal HaskoningDHV Sdn Bhd to develop DLMI’s new environmentally friendly and innovative production facility in Malaysia. Royal HaskoningDHV’s scope of work will include the design, procurement, construction management, commissioning and start-up of the facility, as well as assistance in the transfer from the existing factory to the new facilities at Bandar Enstek, Negri Sembilan. DLMI MD Tarang Gupta said the new production facility will enable the company to produce DLMI’s range of products, with the added scalable capacity to manufacture other innovative variations in the future, driven by consumer trends and occasions. — TMR

Malaysia’s international sovereign sukuks at A3

MOODY’S Investors Service Inc has assigned a senior unsecured rating of A3 to the proposed US dollar-denominated trust certificates (sukuks) with maturities of 10 and 30 years, which would be issued by Malaysia Wakala Sukuk Bhd. The latter is a special-purpose vehicle (SPV) established by the government of Malaysia. In a statement yesterday, Moody’s said the A3 rating assigned to the sukuks is at the same level as the long-term local currency and foreign currency issuer ratings of the government of Malaysia. It said Malaysia’s A3 rating is underpinned by its diversified, competitive and moderately large economy, strong medium-term growth potential compared to its peers and ample natural resources. It said balanced against these credit strengths are the government’s narrow revenue base that limits fiscal flexibility, and its relatively high debt burden and weak debt affordability compared to its peers. Political noise could also distract the government from its policy priorities, particularly longer-term reforms that may strengthen the credit profile over time. — Bernama