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Wednesday, August 28, 2013

Malaysia Airports sets price guidance for RM500 million Islamic bond

Malaysia Airports Bhd (MAHB) has set the price guidance of its RM500 million nominal value senior sukuk or Islamic bond with settlement due early September, a term sheet showed today.
The five-year and three-year Islamic bonds from the Malaysian airport operator were priced in the range of 4.10% to 4.20% and 3.80% to 3.90% respectively.
The Islamic bond offering attracted a strong orderbook of more than RM1 billion, banking sources told Reuters, as Southeast Asia's biggest economies come under pressure from investors who have taken fright at signals the US Federal Reserve will wind down its monetary stimulus programme soon.

MAHB has mandated CIMB, Citi, HSBC and Maybank Investment as joint lead managers for the Islamic bond, which is part of a RM2.5 billion sukuk programme.

Malaysia has emerged as the world's biggest market for primary sukuk issuances, with its strong regulatory framework, low taxes and geographical proximity to expanding Asian wealth.
Societe Generale will launch a RM1 billion Islamic bond programme in Malaysia, becoming the second major European bank to issue sukuk and the first to do so in Asia, Reuters reported last week.

- Reuters, August 26, 2013.

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