Esso fully redeems RM300 million Islamic CP Programme before maturity

Published on 08 June 2012

RAM Ratings has received confirmation that Esso Malaysia Berhad (“Esso” or “the Company”) has made an early redemption of the outstanding notes under its RM300 million Islamic Commercial Papers Issuance Programme (2011/2018) (“ICP”) on 30 May 2012. The Islamic CP Programme was subsequently cancelled on 4 June 2012. Following this, RAM Ratings no longer has any rating obligation on the facility.

To recap, Esso had announced on 17 August 2011 that Philippines based-San Miguel Corporation had proposed to acquire Exxon Mobil Corporation’s (“ExxonMobil”) entire 65%-stake in Esso; the acquisition was completed on 30 March 2012. On this note, Esso’s P1 rating was placed on Rating Watch, with a negative outlook, premised on concerns that the Company's credit profile would deteriorate after the exit of ExxonMobil. If the ICP had remained under surveillance, its rating would have been subjected to downward pressure.

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