KUALA LUMPUR (Nov 22): DanaInfra Nasional Bhd, which has been mandated by the Malaysian government to raise money to finance the country’s Mass Rapid Transit (MRT) and Pan Borneo Highway Sarawak projects, will issue a combined RM1.145 billion worth of Islamic bonds or sukuk across four tranches of Islamic medium-term notes (IMTNs) on Thursday (Nov 25) under DanaInfra’s existing RM71 billion Islamic commercial papers (ICP) and IMTN programme.

According to the Bond and Sukuk Information Exchange (BIX) website, DanaInfra’s four tranches of IMTNs, which have tenures of seven to 29 years, will pay annual profit rates of between 3.68% and 4.57%.

The proposed four tranches of IMTNs comprise the seven-year RM100 million IMTN which pays an annual profit rate of 3.68%, the 14-year RM615 million IMTN which offers an annual profit rate of 4.23%, the 20-year RM195 million scheme which pays an annual profit rate of 4.48% and the 29-year RM235 million scheme which offers an  annual profit rate of 4.57%, according to BIX.

The seven-year RM100 million IMTN will mature on Nov 24, 2028, while the 14-year RM615 million IMTN will mature on Nov 23, 2035, BIX indicated.

Meanwhile, the 20-year RM195 million scheme will mature on Nov 25, 2041, while the 29-year RM235 million scheme will mature on Nov 25, 2050, according to BIX.

All four IMTN schemes to be issued by DanaInfra are "[Malaysian] government-guaranteed”, BIX said.

According to DanaInfra’s website, the company's primary role upon its incorporation is to secure and manage funding of the Klang Valley MRT — Kajang Line, which was previously known as the Sungai Buloh-Kajang Line or MRT Line 1. 

DanaInfra said the company's overriding objective is to minimise the impact of funding large infrastructure developments on the government’s overall fiscal position.

"In December 2014, DanaInfra was further mandated to undertake funding of the MRT Putrajaya Line (previously known as the Sungai Buloh-Serdang-Putrajaya Line).

"In July 2015, DanaInfra was mandated to undertake a fundraising exercise to part-finance the construction of the Pan Borneo Highway Sarawak (Phase 1) of up to RM13 billion with a government guarantee,” DanaInfra said.

The company said that for the purpose of executing its mandate as the infrastructure funding entity to finance the preliminary requirements of the MRT Kajang Line, it established the ICP/IMTN programme of up to RM8 billion in 2012.

"The ICP/IMTN programme is irrevocably and unconditionally guaranteed by the government of Malaysia. 

The ICP/IMTN programme was upsized to RM21 billion in 2014 in line with the Kajang Line funding requirements and subsequently further upsized to RM46 billion in 2015 to cater [to] and consolidate the funding requirements of the MRT Kajang Line and MRT Putrajaya Line upon the government’s approval to proceed with the MRT Putrajaya Line project. 

"In 2018, the ICP/IMTN programme was upsized from RM46 billion to RM61 billion, and was further upsized in 2020 to RM71 billion to meet the funding requirements of the MRT Putrajaya Line,” DanaInfra said.