KUALA LUMPUR, Nov 1 — Pengurusan Air Selangor Sdn Bhd (Air Selangor) has successfully completed an RM1 billion issuance under its existing RM10 billion Sukuk Murabahah Programme.
In a statement today, Air Selangor said the issuance comprises its inaugural RM430 million SRI Sukuk Kelestarian Air Selangor (SRI Sukuk) issuance and its second tranche of RM570 million Islamic medium-term notes (IMTNs) across four series from seven to 20 years.
“The proceeds from the SRI Sukuk will be utilised to finance eligible projects in compliance with Air Selangor’s Sustainable Development Sukuk Kelestarian Framework that includes sustainable water supply and sustainable water management projects, all of which are in line with Air Selangor’s sustainability strategies,” it said.
On the IMTNs, Air Selangor said the proceeds would be utilised to finance the company’s capital expenditure and working capital requirements.
Chief executive officer Suhaimi Kamaralzaman said as economic development activities increase, Air Selangor, being the largest water operator in Malaysia, has a huge responsibility in ensuring the sustainable use and management of treated water for its consumers and future generation.
“Driven by our sustainability mission, we are committed to lead the way in sustainable water management through initiatives and investments that contribute towards reducing environmental impact while delivering meaningful value across economic, environmental and societal sectors,” he said.
Bank Islam Malaysia Bhd, CIMB Investment Bank Bhd and OCBC Al-Amin Bank Bhd are the joint lead managers of the Sukuk issuance.
“The Sukuk Murabahah Programme has been reaffirmed the long and short-term ratings of AAA, with stable outlook and P1 respectively by RAM Rating Services Sdn Bhd on September 13, 2021.
“The AAA rating indicates superior safety for payment of financial obligations while the P1 rating reflects high safety for payment of financial obligations in the short term,” it said.