KUALA LUMPUR (Aug 27): Highway operator MEX II Sdn Bhd, which is owned by Maju Holdings Sdn Bhd, will defer its (MEX II) RM1.3 billion sukuk or Islamic bond principal and profit payments to Dec 31, 2021 following approval from bondholders, according to the bond’s facility agent CIMB Investment Bank Bhd.
In a filing with Bank Negara Malaysia’s (BNM) Fully Automated System for Issuing/Tendering (FAST) website on Wednesday (Aug 25), CIMB said the principal payment under tranche 1 of the Islamic medium term notes was due today (Aug 27, 2021), while the profit payments were due today (Aug 27, 2021) and Oct 29, 2021.
"As the facility agent of the sukuk murabahah, we have been notified by the sukuk trustee that the extraordinary resolutions for: i) the principal under tranche 1 due on Aug 27, 2021; and ii) the profit payments due and payable on Aug 27, 2021 and Oct 29, 2021 — to be deferred to Dec 31, 2021 — have been passed by the sukukholders by way of a circular resolution.
"Please refer to the sukuk trustee's letter dated Aug 18, 2021 and Aug 24, 2021 for details,” CIMB said.
CIMB, however, did not attach the sukuk trustee's letter with the filling.
In corporate terminology, a circular resolution is a method of obtaining bondholders' approval via their signatures for specific proposals without organising a physical meeting.
According to diversified group Maju Holdings’ and its unit Maju Expressway Sdn Bhd's (MESB) websites, MESB operates the 26km Maju Expressway (MEX) in the Klang Valley as a highway concession company, and is responsible for the construction, maintenance, management and operation of the highway.
MESB’s website indicates that MEX links Putrajaya and Cyberjaya with Kuala Lumpur. "MEX is operated by MESB, the concessionaire that has been awarded a 33-year concession to operate the dual carriageway,” MESB said.
Meanwhile, Maju Holdings established MEX II to undertake the proposed estimated 18km Putrajaya-KLIA Highway, which is intended to be a three-lane dual carriageway that will start at MEX’s Putrajaya Interchange and merge onto the existing KLIA Highway, according to MESB.
Maju Holdings indicates on its website that the diversified group’s businesses include construction, property development and healthcare services.
"Established in 1977, the Maju Group under the stewardship of group executive chairman Tan Sri Abu Sahid Mohamed has diversified into synergistic areas of business, forming one of the most well-known conglomerates in Malaysia. It has participated in several key sectors of growth in the country, notably in construction, property, infrastructure, services and manufacturing,” Maju Holdings claimed.
In a note yesterday (Aug 26) evening, Malaysian Rating Corp Bhd (MARC) analysts said MEX II had received sukukholders’ approval on Tuesday (Aug 24) for the deferment of the profit payments amounting to RM68.7 million and RM38.2 million due today (Aug 27, 2021) and Oct 29, 2021 respectively to Dec 31, 2021.
MARC said MEX II had an outstanding RM1.3 billion sukuk murabahah programme and a RM150 million junior bond scheme.
"The rating agency understands that discussions are ongoing on the company’s debt restructuring.
"The construction [of the Putrajaya-KLIA Highway] remains stalled. We view the payment deferment as a short-term relief to MEX II and does not resolve the company’s significant fiscal stress.
"The ratings of the company’s aforementioned [bond] programmes remain at CIS/C,” MARC said.