MAHB raises RM800m via senior Sukuk Wakalah issuance


KUALA LUMPUR – Malaysia Airports Holdings Bhd (MAHB) has issued Senior Islamic Medium Term Notes (Senior Sukuk Wakalah) of RM800 million in nominal value from its RM5 billion Sukuk Wakalah programme.

The triple-tranche offering comprises five-year RM475 million with a 3.87 per cent distribution rate per year, seven-year RM225 million at 4.14 per cent, and 10-year RM100 million at 4.25 per cent.

Offered through a book-building process, the Senior Sukuk Wakalah received overwhelming demand from investors with total orders received exceeding RM4.6 billion at peak, which translates into an over-subscription rate of more than nine times from the initial target issue size of RM500 million.

It was upsized to RM800.0 million, which represents a commendable book-to-cover ratio of more than five times at closing.

Commenting on the successful issuance of the Senior Sukuk Wakalah, MAHB managing director Datuk Iskandar Mizal Mahmood said the over-subscription “reflects the market’s confidence in our strong fundamentals and strategic direction,” considering that the aviation sector is one of the largest hit industries during the COVID-19 pandemic.

“We are very pleased with the response and support received for our Sukuk offering and would like to thank investors for their confidence in the sector’s recovery and growth trajectory despite the challenging market landscape amidst the prolonged global pandemic,” he said, adding the group is now tapping on the “prospects of market recovery”.

MAHB is returning to the debt capital market to build “a war chest” to support the group’s business growth plans and strategies, he added. MAHB’s last issuance was in 2020.

RAM Ratings Services Bhd gave a “AAA” credit rating with a stable outlook for the Senior Sukuk Wakalah.

MAHB group of companies will be using issuance proceeds for working capital requirements, capital expenditure, general investments and general corporate purposes.

The group will also use proceeds from the issuance to refinance existing borrowings or to finance the group and/or to defray fees and expenses related to the Sukuk Wakalah Programme. The entire usage of proceeds will be Shariah-compliant.

HSBC Amanah Malaysia Bhd, Maybank Investment Bank Bhd and RHB Investment Bank Bhd are the joint lead managers for the Sukuk programme.