Pub­lic Sec­tor Home Fi­nanc­ing Board is­sues maiden RM4b sukuk

The Sun (Malaysia) - - SUNBIZ -

PE­TAL­ING JAYA: The Pub­lic Sec­tor Home Fi­nanc­ing Board (LPPSA), a statu­tory body es­tab­lished un­der the Pub­lic Sec­tor Home Fi­nanc­ing Board Act 2015, suc­cess­fully is­sued its maiden sukuk of up to RM4.0 bil­lion to fi­nance the pro­vi­sion of hous­ing loans to the civil ser­vants yes­ter­day.

The is­suance was over­sub­scribed more than three times. The sukuk is­sued in tranches of three-year to 30year was priced at 3.5% to 4.90% per an­num across tenures.

LPPSA said in a state­ment the strong de­mand demon­strates LPPSA’s cre­den­tial as a new sukuk is­suer with a strong credit stand­ing.

The RM4.0 bil­lion sukuk forms part of LPPSA’s RM25.0 bil­lion Is­lamic Com­mer­cial Pa­pers/Is­lamic Medium Term Notes Pro­gramme and is guar­an­teed by the Malaysian gov­ern­ment.

Of­fered through a book­build­ing process, or­ders to­talled RM13.395 bil­lion, rep­re­sent­ing 68 in­vestors.

“There was al­ready an in­di­ca­tion of strong in­ter­est in LPPSA sukuk based on the over­whelm­ing turnout of in­vestors as we of­fi­cially launched LPPSA and an­nounced the maiden is­suance at the in­vestors’ pre­sen­ta­tion in July 2016. We be­lieve that un­der­ly­ing the in­vestors’ sup­port is the mar­ket con­fi­dence in LPPSA’s fi­nan­cial strength and solid credit stand­ing as a sus­tain­able self­fi­nanc­ing body un­der the Min­istry of Fi­nance en­trusted with the pro­vi­sion of hous­ing loans to the civil ser­vants,” LPPSA chair­man Tan Sri Mohd Ir­wan Seri­gar Ab­dul­lah said in a state­ment.

Af­fin Hwang In­vest­ment Bank, AmIn­vest­ment Bank, Bank Is­lam Malaysia, CIMB In­vest­ment Bank, May­bank In­vest­ment Bank, OCBC Bank (Malaysia) and RHB In­vest­ment Bank were the joint lead man­agers and joint book run­ners for the book-build­ing.

CIMB In­vest­ment Bank was the fa­cil­ity agent and RHB Is­lamic Bank the syariah ad­viser for the pro­gramme.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.