PLUS sells landmark US$9.67 billion Sukuk; world’s largest Islamic bond offering to-date (By IFN)

SEE IFN> MALAYSIA: Projeck Lebuhraya Usahasama (PLUS) issued a landmark RM30.6 billion (US$9.67 billion) Sukuk on the 12thJanuary, in what is widely seen as the world’s largest Islamic bond offering to-date.

The deal, managed by CIMB Investment Bank, AmInvestment Bank, Maybank and RHB Investment Bank, was made up of a RM19.6 billion (US$6.3 billion) ‘AAA’-rated program and an RM11 billion (US$3.5 billion) government guaranteed program.

Speaking to Islamic Finance news, Badlisyah Abdul Ghani, the executive director and CEO of CIMB Islamic, said that the ‘AAA’-rated program was priced at between 3.9-5.75% for 21 tranches with maturities ranging from five to 25 years. The government guaranteed program was priced at 5.5% for two tranches maturing in 26 and 27 years.

He also said that the program was privately placed; taken up by the transaction’s lead managers and pension funds.

The success of the issuance has also led to optimism on Malaysian Sukuk sales this year, with Badlisyah noting that: “This will be the best year ever.”

He said that although the PLUS deal makes up the largest Sukuk sale from a single issuer to-date, another transaction is expected to follow this year due to the number of projects coming on-stream in Malaysia from the government’s economic transformation program.

The CIMB Group is also expected to continue dominating the market this year for arranging Sukuk, Badlisyah added.