KUALA LUMPUR (Nov 8): Malaysia Airports Holdings Bhd (MAHB) has made a lodgement with the Securities Commission Malaysia (SC) for the establishment of a sukuk wakalah programme of up to RM5 billion based on the Shariah principle of Wakalah Bi Al-Istithmar.

In a bourse filing on Monday (Nov 8), MAHB said that the sukuk wakalah programme has a perpetual programme tenure which affords the company with flexibility to issue the senior sukuk wakalah and/or perpetual sukuk wakalah from time to time, subject to the aggregate outstanding nominal value of the sukuk wakalah not exceeding RM5 billion at any point in time.

According to the airport operator, the programme has been assigned an initial rating of AAA and AA2 for the senior sukuk wakalah and the perpetual sukuk wakalah respectively, with a stable outlook by RAM Rating Services Bhd (RAM Ratings).

Notably, the triple-A and AA2 ratings assigned represent two of the highest possible credit ratings for a debt-based sukuk, which means that MAHB has superior safety for payment of its financial obligations and is resilient against adverse changes in circumstances, economic conditions and/or operating environments, according to RAM Ratings.

MAHB also said that the proceeds raised from the issuance of the sukuk wakalah shall be utilised for the following Shariah-compliant purposes:

(a)   for working capital requirements, capital expenditure, general investments and/or general corporate purposes;

(b)   for refinancing and/or repayment of existing borrowings/financings/corporate bonds/sukuk issues and/or future Shariah-compliant financings/sukuk issues of the group; and 

(c)   to defray fees, costs and expenses relating to the establishment of the sukuk wakalah programme and the issuances of the sukuk wakalah.

At market close on Monday, MAHB shares were up by 10 sen or 1.56% to close at RM6.50, giving it a market capitalisation of RM10.78 billion.