KUALA LUMPUR: Pengurusan Air Selangor Sdn Bhd (Air Selangor) has issued RM1.2 billion SRI Sukuk Kelestarian Air Selangor (SRI KAS) under its RM10.0 billion Sukuk Murabahah Programme.
Air Selangor said the issuance received an overwhelming response from investors, with it being oversubscribed 4.95 times at book close.
"This is a testament to investors' continuing confidence in Air Selangor's credit and their recognition and support of our sustainability agenda."
"The proceeds from the issuance will allow us to align with the aspirations of theMinistry of Energy Transition and Water Transformation (Petra) and further bolster investments in increasing water reserve margins, reducing non-revenue water, and ensuring continuous, more efficient and greener operations of our water infrastructure," said Air Selangor chief executive officer Adam Saffian Ghazali.
Backed by solid orders aggregating to a significant total of RM5.9 billion, Air Selangor said the offering increased by 20 per cent from RM1.0 billion to RM1.2 billion.
This incredible support has established Air Selangor's 6th SRI KAS as the new standard for AAA Sukuk issuances, it said.
According to Air Selangor, the proceeds from the SRI KAS will be utilised to finance eligible projects that align with Air Selangor's priority sustainable development goals and its sustainable development sukuk kelestarian framework.
It said these projects include sustainable water supply initiatives and varioussustainable water management projects, and renewable energy initiatives, which reinforce Air Selangor's commitment to ensuring the sustainability of the water supply system for future generations.
The sukuk Murabahah has been reaffirmed a long- and short-term rating of AAA with a stable outlook and P1, respectively, by RAM Rating Services Sdn Bhd.Bank Islam Malaysia Bhd is the principal adviser, lead arranger, and shariah adviser for the sukuk Murabahah.