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PETALING JAYA: Petronas Gas Bhd’s (PetGas) 65% owned subsidiary Pengerang LNG (Two) Sdn Bhd (PLNG2) has concluded the issuance of a 20-year multi-tranche sukuk murabahah amounting to RM1.7 billion under its Islamic Medium Term Note Programme.
The oversubscription of just over three times reflects the market’s confidence in the company’s credit strength which has been assigned a rating of AAA by the Malaysian Rating Corp Bhd.
“We are pleased with the overwhelming response and demand from the investors, underpinned by our robust and sustainable business model despite the current global challenges,” said PetGas managing director and CEO Kamal Bahrin Ahmad.
The issuance is in line with continued efforts in driving efficient capital management across PetGas group, added Kamal Bahrin, who is also the chairman of PLNG2.
The proceeds will be utilised by PLNG2 for syariah-compliant purposes, primarily to repay its outstanding US dollar shareholders’ loans in full, hence there will be no change in the group’s consolidated borrowings.
Based on PGB’s consolidated statement of financial position as at June 30, 2020, there will be no material change in PetGas group’s consolidated gearing. In addition, the issuance will not have a material impact on the earnings, earnings per share and net assets per share of the group for the current financial year.
PLNG2 operates the Liquefied Natural Gas (LNG) Regasification Terminal Pengerang (RGTP) in Johor, and PetGas’s second regasification facility after RGT Sungai Udang located in Malacca. PLNG2’s other shareholders include Dialog LNG Sdn Bhd (25%) and Permodalan Darul Ta’zim Sdn Bhd (10%).
