KUALA LUMPUR: IHH Healthcare Bhd
, through its subsidiary Pantai Holdings Sdn Bhd, has launched its first RM4bil Sukuk issuance under its newly established RM15bil Sukuk Wakalah Programmes.
OCBC Al-Amin Bank Bhd acted as the sole principal adviser, lead arranger, sustainability structuring adviser, shariah adviser, facility agent and lead manager for the sukuk programmes.
The establishment of the sukuk programmes offers a timely opportunity for IHH to diversify its funding sources in pursuit of its growth ambitions in Malaysia.
The sukuk programmes are also structured with flexibility to issue sustainability and sustainability-linked sukuk, supporting the group’s capital management and reinforcing its commitment to “create a healthier, more sustainable future.”
The proceeds from this initial sukuk issuance will fund the acquisition of the 600-bed Island Hospital, announced in early September. The issuance received strong support, with a subscription rate over four times the issuance size.
The joint lead managers for this sukuk issuance are CIMB Investment Bank Bhd, HSBC Amanah Malaysia Bhd, Maybank Investment Bank Bhd, OCBC, RHB Investment Bank Bhd and United Overseas Bank (M) Bhd.
“Island Hospital is a highly attractive asset with strong operations in Penang, a fast-growing market, and supported by a large specialist pool and clinical offerings with strong operational metrics. This acquisition creates a medical tourism powerhouse to support the country’s aspirations as Island Hospital is the leading medical tourism hospital in Malaysia.
“The acquisition also demonstrates continued investment in IHH Healthcare’s home market with strong growth, leveraging on Pantai’s proven operating track record and successful M&As,” IHH Healthcare group chief executive officer Dr Prem Kumar Nair said in a statement.
Meanwhile, OCBC managing director, senior banker, and head of investment banking, Tan Ai Chin, highlighted the bank’s significant role in this landmark transaction, which clearly demonstrates its strategic client relationship in supporting IHH Healthcare from its inception to becoming one of the largest private healthcare providers in the world.
“OCBC is also an existing sole financer to Island Hospital, supporting them through the entire development journey to becoming a formidable healthcare provider in Penang. This demonstrates OCBC’s strong coverage and expertise in the healthcare sector and our continued pioneering effort in facilitating cost effective sustainable financing solution in supporting our valued clients like IHH Healthcare in their growth journey”
