corporate

MAHB's sukuk oversubscribed 3 times in strong debt market comeback

KUALA LUMPUR: Malaysia Airports Holdings Bhd's (MAHB) first sukuk wakalah issuance  in two years was oversubscribed by more than three times after it made a debt market comeback.

The triple-tranche offering comprises a five-year RM400 million senior sukuk wakalah, a seven-year RM600 million senior sukuk wakalah and a 10-year RM600 million senior sukuk wakalah.

"The offering attracted a diverse investor base and generated robust demand, achieving a peak orderbook in excess of RM5.7 billion, which represents both an oversubscription rate of more than 3.6 times and the largest order book ever achieved by MAHB compared to its past senior sukuk issuance."

"On the back of a strong and healthy orderbook, MAHB tightened its offering yield and achieved a final profit rate of 3.95 per cent per annum (p.a.), 4.02 per cent p.a. and 4.08 per cent p.a., representing the tightest spread ever achieved across the respective tenors," it added.

MAHB managing director Datuk Mohd Izani Ghani said the sukuk issuance is a testament to strong confidence that investors have in the group.

"It reflects our resilience and our ability to navigate challenges while remaining focused on long-term value creation."

"Moving forward, we aim to be a regular issuer in the Malaysian debt capital markets to support our growth and operational needs."

"Additionally, we aspire to raise sustainable financing as part of our efforts to align with net-zero goals and advance our environmental, social, and governance (ESG) agenda," he said in a statement.

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