KAB ISSUES RM500 MLN MULTI-CURRENCY SUKUK

KUALA LUMPUR, Sept 29 -- Kejuruteraan Asastera Bhd’s (KAB) wholly-owned subsidiary KAB Energy Power Sdn Bhd has issued a multi-currency Islamic medium-term notes sukuk programme worth up to RM500 million.

Managing director Datuk Lai Keng Onn said proceeds would be utilised to fund future energy-related value accretive developments and acquisitions in Malaysia and the Asian region, as well as refinancing the group’s existing borrowings.

This would provide the group with the flexibility in its fund-raising exercise with varying amounts and tenures for optimal asset-liability matching through the capital markets, he said.

“We are actively looking out for greenfield projects and brownfield energy assets, such as solar power generation, hydropower plants and biogas, to name a few, as we see tremendous growth in this sector.

“Therefore, this programme is a good opportunity for us to raise long term funds in the capital market and be able to provide greater flexibility to manage our cash flows as well as tailoring our debt issuance to meet the financing needs at the lower interest rate,” he said in a statement today.

Lai said Public Investment Bank Bhd (PIVB) has been appointed as the principal adviser, lead arranger and lead manager for the 30-year sukuk programme.

He said for the first tranche, Public Islamic Bank Bhd (PIBB) has expressed its intention to subscribe, while Malaysia’s first and only financial guarantee insurer, Danajamin Nasional Bhd has agreed to guarantee it.

“The tranches, which are guaranteed by Danajamin have an equivalent of a ‘AAA’ rating as Danajamin is rated ‘AAA’ by both RAM Rating Services Bhd and Malaysian Rating Corporation Bhd,” he added.

-- BERNAMA