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KPJ Healthcare Bhd’s proposed RM3 billion sukuk wakalah programme to finance its expansion, working capital requirements and general corporate purposes will not have any effect on its issued and paid-up share capital and/or the substantial shareholders. 

“Hence, it will not have any material impact on the earnings, earnings per share and net assets per share of KPJ for the current financial year,” MIDF Research noted in a report on the healthcare provider yesterday. 

As such, MIDF Research has kept its forecast of earnings estimates for KPJ the financial year of 2021 to 2022 (FY21-FY22). 

KPJ’s wholly-owned subsidiary, Point Zone (M) Sdn Bhd, has lodged the sukuk wakalah programme with the Securities Commission Malaysia on unlisted capital market products under the lodge and launch framework (LOLA guidelines). 

Proceeds from the sukuk will also be utilised to finance and refinance existing and future borrowings, bonds and sukuk issues in accordance with the sustainability framework. 

Malaysian Rating Corp Bhd has given the programme a preliminary rating of AA-IS (CG). 

The sukuk wakalah is compliant with the sustainable and responsible investment sukuk framework under the LOLA guidelines, Asean Green Bond and Social Bond standards, and the sustainability bond standards issued by the Asean Capital Markets Forum. 

MIDF noted that the healthcare sector is set to improve this year following further immunisation programmes against the Covid-19 pandemic and the fully easing of interstate border restrictions. 

“The increasing use of digital healthcare platforms and reopening medical tourism shall benefit KPJ’s hospitals and medical services,” it added. 

MIDF maintained its ‘Neutral’ recommendation on KPJ with an unchanged target price of RM1.06 per share as the sanguine outlook was reflected in its current share price outperformance.