Pakistan & Middle East's leading
Business Web Portal

News Business

Loading the player...

Malaysia's Sarawak Hidro said to plan $1.3 Billion Sukuk Sale

Sarawak Hidro, owned by Malaysia’s Ministry of Finance, aims to sell the Islamic bonds in July and will use the proceeds to refinance existing debt, according to the people. The sukuk program has a preliminary AAA score from local assessor RAM Rating Services Bhd., the people said, asking not to be identified as the information is private.
The electricity generator is weaning off government guarantees for its latest sukuk program in a move to ease the nation’s fiscal burden, even as sales of such debt climbed to a record this year. Sarawak Hidro’s plant on Borneo island is part of Prime Minister Najib Razak’s $444 billion development plan, which includes improving infrastructure as the nation seeks to become a developed economy by 2020.
“The move is positive for the government to manage the risk of contingent liabilities, by leaving companies with healthy cashflows to have their standalone rating,” Fakrizzaki Ghazali, a Kuala Lumpur-based strategist at RHB Research Institute Sdn., said by e-mail Monday. The limited supply of local AAA-rated debt this year could support demand for the offering, according to Ghazali.

view moreEvents

view moreInterviews

view moreIslamic Finance Education