SINGAPORE: Singapore's Swiber Holdings Ltd's subsidiary, Swiber Capital Pte Ltd, has, through Maybank Kim Eng, successfully issued its inaugural S$150 million five-year sukuk at a fixed periodic distribution rate of 6.50%.
The sukuk issuance is the first drawdown from the oil-field services company's newly established US$500mil Multi-Currency Islamic Trust Certificates Issuance Programme and marks Swiber out as one of the first few Singaporean corporations with a sukuk offering.
The issuance was strongly supported by Maybank Kim Eng's network of investors across South-East Asia, with Brunei taking up 46.3%, Singapore 43.7% and Malaysia making up the remainder.
A total of 96.5% of the S$150mil sukuk was allocated to institutional buyers that included takaful funds, pension funds and banks; 0.7% to fund managers and 2.8% to private banks.
Maybank KE said the sukuk's 6.50% rate, which is tighter than Swiber's outstanding conventional paper due 2017 quoted at 6.58%, suggests that sukuk deals are gaining momentum in Singapore and that Singapore dollar sukuk could be priced more competitively than conventional Singapore dollar bonds.
Maybank Kim Eng group chief executive Tengku Datuk Zafrul Tengku Abdul Aziz said:
"We see this sukuk issuance as the first of many to come. We will work closely with the relevant authorities to identify and address time-to-market issues to further facilitate Islamic financing activities in Singapore," he said.
Swiber group CEO and president Francis Wong said the overwhelming investor interest reflects strong confidence in Swiber's fundamentally sound business model and would allow the company to broaden and deepen its investor base.
"We are now further empowered to execute on our plans to capitalise on the world's growing energy demands," said Wong.
Maybank Kim Eng and its parent company Maybank are joint programme dealers with Maybank Islamic acting as the Shariah adviser for the programme.