Prasarana, Malaysia Sukuk Offer 2.6 Times Oversubscribed

KUALA LUMPUR: A RM3bil sukuk offer by national transport company Prasarana has received orders of up to RM7.9bil, company officials said Thursday.

“As of last night (Wednesday) nine something (pm), we received orders up to RM7.9bil, meaning that it is about 2.6 times oversubscribed,” Prasarana chief executive Datuk Azmi Abdul Aziz (pic) told reporters here.

He said the offer was to finance the construction of the Ampang and Kelana Jaya LRT line extensions, which are set to open to the public this year.

He added that Prasarana received orders from 54 financial institutions around the country.

He said this was a sign that the local financial market was ready to support the company’s infrastructure programme, adding: “So we are not opening to foreign funds to come in.”

It is learned that this is the first sukuk offer by Prasarana this year.

The second phase of the Ampang LRT line extension is expected to open in late March, with the Kelana Jaya line extension to follow in June.

Both lines will converge south of Kuala Lumpur and will have more than 20 new stations on the way to Putra Heights, reaching thousands of new passengers.

Azmi added that the company was also planning how to finance its LRT3 project, which will stretch from Bandar Utama to Klang. Construction is expected to start soon this year and end by late 2020.

Originally published on www.thestar.com.my