SUNWAY City Bhd (Suncity) has won five prestigious awards for its recently concluded property asset-backed securitisation (ABS) exercise, which raised RM450mil.
One of the awards was from Britain-based Euromoney (Deals of the Year: Asia Best Securitisation), and four from Hong Kong-based internationally circulated magazines Finance Asia, for Best Domestic Securitisation, CFO Asia for Top 10 Deals of the Year, Asiamoney, Asset Backed Deal of the Year Domestic, and The Asset Best Securitisation Deal.
A company statement said that the money raised from the ABS transaction, which was to repay the Suncity group's borrowings, had led to the Rating Agency Malaysia Bhd enhancing its corporate rating to A2. It helped to raise funds for the management to focus on its core competency of property development.
The ABS exercise was the first-ever conducted in Malaysia involving a diverse portfolio of assets. The transaction also involved a sale and leaseback structure, whereby Suncity initially transferred a portfolio of properties worth RM892mil to a special purpose vehicle named ABS Real Estate Bhd (AREB).
The securitisation structure was the option for Suncity to repurchase the leased properties in 2007 from AREB at market valuation.
Did you find this article insightful?