Pengurusan Air Selangor Sdn. Bhd. (“Air Selangor”) is pleased to announce the successful issuance of its sixth (6th) and largest tranche of SRI Sukuk Kelestarian Air Selangor (“SRI KAS”) valued at RM1.2 billion. The issuance, which spans four (4) series ranging from 10-to-25 years, marks the completion of Air Selangor’s seventh (7th) issuance to date under its RM10.0 billion Sukuk Murabahah Programme. Overwhelming interest was seen from the onset of the issuance announcement, culminating in a significant oversubscription of 4.95 times at book close.
“We are very pleased with the outcome and strong support from the investors, as reflected in the remarkable oversubscription of 4.95 times. This is a testament to investors’ continuing confidence in Air Selangor’s credit and their recognition and support of our sustainability agenda. The proceeds from the issuance will allow us to align with the aspirations of the Ministry of Energy Transition and Water Transformation (PETRA) and further bolster investments in increasing water reserve margins, reducing non-revenue water, and ensuring continuous, more efficient and greener operations of our water infrastructure” said Adam Saffian Ghazali, Air Selangor’s Chief Executive Officer.
Backed by solid orders aggregating to a significant total of RM5.9 billion, the offering was increased by 20% from its original size of RM1.0 billion to RM1.2 billion. This incredible show of support has established Air Selangor’s 6th SRI KAS as the new standard for AAA Sukuk issuances. The proceeds from the SRI KAS will be utilised to finance eligible projects that align with Air Selangor’s priority Sustainable Development Goals and its Sustainable Development Sukuk Kelestarian Framework. These projects include sustainable water supply initiatives and various sustainable water management projects, including renewable energy initiatives, which reinforce Air Selangor’s commitment to ensuring the sustainability of the water supply system for future generations.
The Sukuk Murabahah Programme, under which the SRI KAS was issued, has been reaffirmed a long- and short-term rating of AAA with a stable outlook and P1, respectively, by RAM Rating Services Sdn Bhd on 11 September 2023.
Bank Islam Malaysia Berhad and CIMB Investment Bank Berhad who were involved in the book-building process were instrumental in the success of the issuance. Bank Islam Malaysia Berhad also serves as the Principal Adviser, Lead Arranger, and Shariah Adviser for the Sukuk Murabahah Programme.
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