KUALA LUMPUR: Syarikat Prasarana Negara Bhd’s offering of RM1bil in nominal value Islamic Medium Term Notes (MTN) in 10 and 15-year tranches have been snapped up, with bid-to-cover ratios of above three times.
Prasarana finance division group director Mohd Zahir Zahur Hussain said Thursday the Sukuk were priced at the low range of the final price guidance, which demonstrated strong investor appetite and ample liquidity in the market for high-grade papers with government guarantee like the Sukuk.
Orders received for the 10-year tranche reached RM1.635bil during the one-day book-building period, which represented a bid-to-cover ratio of 3.27 times, whereas orders for the 15-year tranche was at about RM1.55bil, representing a bid-to-cover ratio of 3.1 times.
The RM500mil MTN in 10-year tranche carry semi-annual profit rate of 4.26%, while the RM500mil MTN in 15-year tranche has a yield rate 4.58% annually.
Mohd Zahir noted that a broad range of investors has participated, including government agencies, financial institutions, fund managers, insurance companies and corporate accounts.
“Prasarana is very pleased with this successful outcome and would like to thank the Ministry of Finance, the banks and all parties who participated in this transaction for all their efforts in coordinating a well-executed issuance strategy despite the challenging market as well as compressed timeline,” he said in a statement released.
He added that the successful issuance was a testimony to Malaysia’s significant presence in the Sukuk market, both locally and globally.
AmInvestment Bank Berhad and CIMB Investment Bank Berhad are the joint lead arrangers for Prasana’s Sukuk Ijarah Programme. These two banks, together with HSBC Amanah Berhad and RHB Investment Bank Berhad, are also the joint lead managers and the joint bookrunners.