PETALING JAYA: Malaysia Airports Holdings Bhd (MAHB) has issued a RM800mil sukuk issuance, an upsize from its initial target of RM500mil, from its RM5bil sukuk wakalah programme.

       This is given the robust demand for its Islamic bonds.

       “The sukuk issuance represents a re-tap into the debt capital markets by MAHB since its last issuance in 2020.

       “MAHB managed to tap on the prospects of market recovery and garnered robust demand for its senior sukuk wakalah with a final bid-to-cover ratio of more than five times the final issue size.

       “On the back of this, MAHB had also successfully tightened the final price of the senior sukuk wakalah substantially from the initial price guidance and the senior sukuk wakalah was subsequently upsized from the initial target issue size of RM500mil to RM800mil,” it said in a filing with Bursa Malaysia yesterday.

       The bonds are issued in three tranches, comprising amounts of RM475mil, RM225mil and RM100mil with tenures of five, seven and 10 years, respectively.

       The distribution rate, payable semi-annually, ranges from 3.87% to 4.25%.

       The senior sukuk wakalah issued under the sukuk wakalah programme has been assigned a credit rating of AAA with a stable outlook by RAM Rating Services Bhd, and the proceeds from the sukuk issuance will be utilised by the MAHB group of companies for working capital requirements and capital expenditure, among others, it said.

       HSBC Amanah Malaysia Bhd, Maybank Investment Bank Bhd and RHB Investment Bank Bhd are the joint lead managers for the sukuk issuance.