PETALING JAYA: Malaysia has more than RM38bil of sukuk issuances in the pipeline dominated by the private sector. Data recently compiled and updated by Reuters showed that Tenaga Nasional Bhd has hired three banks to help raise up to RM9.5bil through a sukuk issue.
It is raising the amount to develop a greenfield power plant it has taken over from debt-laden state fund 1Malaysia Development Bhd. Another notable corporate issuer was SapuraKencana Petroleum Bhd.
It said said in mid-June that it planned to raise up to RM7bil with a multi-currency sukuk programme. Meanwhile, the country’s second largest lender, CIMB Group Holdings Bhd wants to launch a new RM6bil conventional and Islamic bond programme, a regulatory filing by RAM Ratings said in late April.
Telekom Malaysia Bhd had readied in late April a RM2.8bil, multi-currency sukuk programme. Another prominent issuer was Axis REIT. It said in early April that it had expanded its sukuk programme to RM3bil from RM300mil.It had extended the tenure to perpetual from 15 years.
Reuters news report yesterday said the Thomson Reuters Global Sukuk Index was at 118.01254 points, up from 117.85307 at the end of last month and 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 116.67223 against 116.56666 at end-June and 113.69014 at end-2014.
Originally published on www.thestar.com.my