Pengurusan Air Selangor Sdn Bhd has successfully raised RM1.2 billion through the issuance of its sixth and largest tranche of the Sustainable and Responsible Investment Sukuk Kelestarian Air Selangor (SRI KAS).
The water services provider announced that this issuance, comprising four series with maturities ranging from 10 to 25 years, marks the completion of its seventh issuance to date under its RM10 billion sukuk murabahah programme.
“We are very pleased with the outcome and the strong support from investors, as demonstrated by the remarkable oversubscription of 4.95 times,” stated Chief Executive Officer Adam Saffian Ghazali in a statement today.
He added that the oversubscription reflects investors’ continued confidence in Air Selangor’s creditworthiness and their recognition and support of the company’s sustainability agenda.
Adam also highlighted that the proceeds from this issuance would enable Air Selangor to align with the aspirations of the Energy Transition and Water Transformation Ministry.
“This funding will further enhance investments aimed at increasing water reserve margins, reducing non-revenue water, and ensuring the continuous, more efficient, and greener operation of our water infrastructure,” he explained.
Supported by strong orders amounting to RM5.9 billion, Air Selangor increased the offering by 20 per cent from RM1 billion to RM1.2 billion.
“This strong backing has established Air Selangor’s sixth SRI KAS as the new benchmark for AAA sukuk issuances. The proceeds will be used to finance eligible projects that align with our priority Sustainable Development Goals and our Sustainable Development Sukuk Kelestarian Framework,” the company noted.
The sukuk murabahah programme, under which the SRI KAS was issued, was reaffirmed with a long- and short-term rating of AAA with a stable outlook and P1, respectively, by RAM Rating Services Sdn Bhd on 11 September 2023.
Bank Islam Malaysia Bhd serves as the principal adviser, lead arranger, and shariah adviser for the sukuk murabahah programme. Bank Islam and CIMB Investment Bank Bhd are joint lead managers for the SRI KAS issuance.
Source: Bernama
