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Wednesday January 18, 2012
By JACK WONG firstname.lastname@example.org
KUCHING: Sarawak Energy Bhd (SEB) has raised an additional RM2.5bil, which was RM1bil more than originally planned, in Islamic debt to finance its power plants and transmission system projects.
Chief executive officer Torstein Dale Sjotveit said SEB had decided to increase the issuance of its sukuk to RM2.5bil from RM1.5bil due to overwhelming response from investors.
“This second issuance of RM2.5bil was heavily oversubscribed (total subscription was RM6.2bil) at very attractive rates.
“As the rates are very low at 4.5% (for 10 years debt) and 4.85% (for 15 years debt), we've decided to increase the amount raised instead of waiting until October or November for another issuance,” he said at a briefing.
Torstein said the RM2.5bil sukuk attracted 38 local investors which included insurance companies and pension funds.
SEB's inaugural sukuk issuance of RM3bil in June last year was oversubscribed by three times.
Its RM15bil sukuk musyarakah programme had been given a long-term rating of AA1 by RAM Rating Services Bhd.
AmInvestment Bank Bhd, Kenanga Investment Bank Bhd and RHB Investment Bank Bhd were the joint lead managers and joint bookrunners for the second sukuk issuance. The principal adviser and lead arranger was RHB Investment Bank.
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