Cahya Mata Sarawak plans RM1b sukuk

PETALING JAYA: Cahya Mata Sarawak Bhd (CMS) which recently acquired a 50%-stake in telecommunications infrastructure provider, Sacofa Sdn Bhd, is planning a RM1 billion sukuk programme.
RAM Ratings has assigned a preliminary rating of AA3/stable to CMS' proposed RM1 billion sukuk Ijarah programme (2016/2036).
The ratings agency, however, did not state for what purpose will the Sarawak-based conglomerate use the debt programme for.
At the same time, RAM Ratings have reaffirmed the AA3/Stable/P1 corporate credit ratings of CMS, reflecting the group's superior financial profile.
"The ratings are supported by CMS's strong business profile as the sole cement manufacturer in Sarawak. Backed by strong market position and vertically integrated operations, the group's cement business has been highly profitable.
It also viewed CMS's diversified sources of income favourably, albeit mostly being related to the construction sector.
It noted that the group has been enjoying strong growth in profitability for its construction material and trading as well as construction and road maintenance divisions in recent years, attributed to the booming Sarawak construction scene.
"All in, prospects for CMS are bright over the medium term, underpinned by the fact that it will remain as one of the main beneficiaries of the development of the Sarawak Corridor of Renewable Energy (SCORE)," it said.