Kuala Lumpur – Pengurusan Air Selangor Sdn. Bhd. (“Air Selangor”) today has successfully completed its inaugural Islamic Medium Term Notes (“IMTN) and Islamic Commercial Papers (“ICP”) issuances under its recently established Sukuk Murabahah Programme, which comprises a 30-year IMTN Programme and a 7-year ICP Programme with a combined limit of up to RM10 billion in nominal value.
Pursuant to the Sukuk Murabahah issuances, Air Selangor has successfully raised RM50 million via the ICP issuance and RM1.1 billion across 4 tenors between 3 to 10 years via the IMTN issuance.
Suhaimi Kamaralzaman, Chief Executive Officer of Air Selangor said, “Against a backdrop of cautious market sentiment, Air Selangor successfully secured strong demand from the market with an order book of RM1.445 billion for the IMTN, representing an average oversubscription ratio of 135% across the tenors. The issuance attracted interest from a diverse group of Islamic as well as conventional investors, comprising asset management companies and financial institutions.”
“The successful pricing of the Sukuk Murabahah issuances is a testament to Air Selangor’s pivotal role in the water sector. Furthermore, it represents an important milestone in Air Selangor’s journey towards enhancing and upgrading our water infrastructure in order to provide the best service to our customers”, he added.
The proceeds from the Sukuk Murabahah issuances can be utilised to, amongst others, finance Air Selangor’s capital expenditure and working capital requirements, and refinance any of its existing indebtedness or future Shariah-compliant indebtedness.
The Sukuk Murabahah Programme has been assigned long and short-term ratings of AAA with stable outlook and P1 respectively by RAM Rating Services Sdn Bhd. Through the Sukuk Murabahah Programme, Air Selangor may also issue ‘SRI Sukuk Kelestarian Air Selangor’ in compliance with its Air Selangor Sustainable Development Sukuk Kelestarian Framework to fund and invest in sustainable and responsible investment projects in line with Air Selangor’s sustainability strategies.
For more information on Air Selangor, visit our website www.airselangor.com or email us at wecare@airselangor.com.
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