Perak Transit to issue RM300m sukuk under first Islamic MTN programme

20 Sep 2019 / 12:09 H.

IPOH: Perak Transit Bhd plans to issue RM300 million sukuk murabahah next month to which United Overseas Bank (Malaysia) Bhd (UOB Malaysia) will be the sole subscriber.

The unrated sukuk murabahah will be the first tranche of Islamic notes to be issued under Perak Transit’s RM500 million 15-year Islamic medium term notes (IMTN) programme, the company’s first IMTN programme.

The proceeds will be used to refinance existing borrowings, to finance the company’s capital expenditure and working capital for existing and new projects.

Perak Transit managing director Datuk Seri Cheong Kong Fitt said the IMTN programme will help the group to reach the next level of growth and to drive cost efficiency through lower financing cost. This enables Perak Transit to deliver more value to its new and existing shareholders and stakeholders.

“With the support of UOB Malaysia, Perak Transit will be able to develop integrated public transportation terminals in other parts of Perak as well as in other regions across Malaysia to provide better transportation infrastructure services to the public at large,” he said in a statement.

UOB Malaysia also acts as the principal adviser, lead arranger, lead manager and facility agent for the entire RM500 million IMTN programme.

UOB Malaysia CEO Wong Kim Choong said UOB Malaysia has a strong track record in the Islamic capital markets, having been involved in a number of significant Islamic capital-raising exercises over the years.

“Islamic financing solutions are integral to the comprehensive suite of products and services we offer to support companies in achieving their strategic goals. UOB Malaysia is proud to be supporting Perak Transit’s first Islamic MTN programme and subscribing to the programme’s first tranche of Islamic notes.”

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