Cahya Mata Sarawak Bhd announced that it had paid in full its Islamic Medium Term Notes of RM500.0 million in nominal value on its scheduled maturity date of 5 May 2022, via its internal funds.
With the redemption, there are no outstanding Islamic Medium Term Notes under its Sukuk Programme of up to RM2.0 billion in nominal value.
RAM Rating Services Berhad (“RAM Ratings”) has also assigned an AA3/Stable rating for the Group’s Sukuk Programme. The reaﬃrmation reﬂects RAM Ratings’ expectation that as the sole cement manufacturer in Sarawak, CMS’s operating performance will gradually improve as it directly beneﬁts from the pick-up in Sarawak’s construction activities.
RAM Ratings added that CMS’s ﬁnancial proﬁle, particularly its cashﬂow debt coverage, is anticipated to improve steadily in the immediate two years to stay commensurate with its ratings. Furthermore, it notes that positive remedial measures have been undertaken by the board to strengthen the Group’s internal controls and risk management.
On 5 May 2017, CMS made its ﬁrst issuance of Sukuk amounting to RM500 million mainly for ﬁnancing the capital expenditure and working capital requirements. Moving forward, the Group will be looking to tap into more ESG-based funds to match its long-term funding requirements on its related projects and improve earnings across the business verticals.