Translate this page

Tuesday, August 27, 2013

Khazanah Nasional’s RM10b Islamic notes affirmed at AAA


KUALA LUMPUR: Khazanah Nasional Bhd has proposed to issue RM10bil multi-currency Islamic securities programme via Danga Capital Bhd, which is a trust-owned special purpose vehicle.
RAM Rating Services Bhd had on Monday reaffirmed the AAA rating of Danga Capital debt notes. It said the long-term rating has a stable outlook.

Danga, a trust-owned special purpose vehicle, had been incorporated for the sole purpose of facilitating the issuance of the Islamic securities programme (ISP).

“The rating reflects the credit strength of Khazanah Nasional, in its role as the purchase undertaking Obligor in this transaction. Proceeds from the ISP were utilised to purchase pools of identified Shariah-approved shares and/or assets from Khazanah.

“The company will top up any shortfall in the income generated by the Musyarakah venture. It has also undertaken to purchase specific portfolio units from Danga at a pre-agreed price upon maturity or a dissolution event,” it said.

RAM Ratings considered Khazanah as an extension of the government of Malaysia; the likelihood of extraordinary government support for the company if at all required is deemed indisputable.
This is based on Khazanah's strategic importance to the government given the company's interests in sectors that are strategically significant to the nation's economy and strong links with this sole shareholder.

No comments:

Post a Comment