Capital markets executive summary | Mon 4 Dec 2023

Capital markets executive summary | Mon 4 Dec 2023

AEON Credit issued RM300m senior sukuk

The financial service provider issued the 4th and last tranche from its RM2b sukuk wakalah programme. The tenor of the sukuk, rated AA3 by RAM, is 5 years and the profit rate is 4.45% per annum. The last trade was for RM5m and yield of 4.39%. The issuance proceeds will be used for financing disbursements to customers as part of its business of providing consumer financing based on Shariah principles, and to refinance the company’s existing facilities or outstanding sukuk. The 1st tranche issued on 10 Feb 2020 was made up of senior sukuk with RM500m nominal value. The 2nd tranche that was issued on 12 Mar 2020 was RM200m subordinated sukuk. The 3rd tranche of RM300m senior sukuk was issued on 4 Sep 2023. Hong Leong Investment Bank was lead arranger. The counter closed at RM5.71.

RM3.2b Phase 1 lithium battery separator project in Penang launched

INV New Material Technology (M) Sdn Bhd is a subsidiary of China’s Shenzhen Senior Technology Material Co Ltd, a leader in the global lithium battery separator industry. Located in the Penang Technology Park, the 1st such facility in Southeast Asia will have the capacity to manufacture 1.3b square metres of wet-process separators and coated separators annually. The government sees INV’s new plant, which will create 4k jobs for Malaysians, as contributing to the New Industrial Master Plan (NIMP) 2030 and the Chemical Industry Roadmap 2030. The entry of another major EV component producer makes Malaysia one of the largest lithium-ion battery separators in Southeast Asia. It strengthens Malaysia’s position as the regional EV hub and pushes the country towards a dynamic, cutting-edge and transformative manufacturing future.
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Citaglobal and Masdar to develop 2GW renewable energy projects in Pahang

Following the memorandum of understanding signed on 27 Jul, the Citaglobal-TIZA Global Sdn Bhd consortium signed a joint development agreement (JDA) with Abu Dhabi Future Energy Company PJSC (Masdar), a clean energy investment vehicle of the government of Abu Dhabi, for USD2b (RM9.75b) worth of projects. The event at the United Nations Climate Change Conference of the Parties (COP 28) in Dubai was witnessed by the President of the UAE Sheikh Mohamed Zayed Al Nahyan and 9.91% shareholder of Citaglobal YDPA Sultan Abdullah. The consortium will hold 40% while Masdar holds 60%. The funds for the project development cost will be provided by the parties in proportion to their stakes. Citaglobal claims to have received the Pahang state government’s full support to develop and execute renewable energy projects including land approvals. The 5-year project will be developed in phases and entails the construction of ground solar plants, floating solar farms and battery energy storage systems on multiple sites. The solar project is part of Masdar’s commitment to implement 10GW clean energy projects in Malaysia with a total investment of USD8b. Masdar is owned by Mubadala Investment Company, Abu Dhabi National Oil Company and Abu Dhabi National Energy Company. Citaglobal closed at RM1.58.

Crest Builder buys 49% of UiTM’s campus concession company

Crest Builder International Sdn Bhd, wholly-owned subsidiary of the construction and engineering contractor, acquired the remaining 490k shares of its subsidiary Unitapah Sdn Bhd from Detik Utuh Sdn Bhd for RM43.61m cash. Unitapah has a 23-year concession to develop and maintain Universiti Teknologi MARA’s (UiTM) campus in Tapah, Perak. The acquisition, which is expected to strengthen the company’s future earnings and cashflows, is funded with the balance of the proceeds from the issuance of sukuk murabahah. RAM Ratings assigned a AA2 rating to UniTapah’s RM600m sukuk murabahah in 2014, which were issued after the completion of the campus. The sukuk murabahah were recently upgraded to AAA on 7 Jun 2023. Crest Builder closed at 46 sen.

Maybank Singapore grants USD100m sustainability-linked Islamic facility to AET

AET owns maritime transportation assets and provides specialised services. The Islamic revolving credit facility (RCF-i) is the 1st in Southeast Asia’s shipping industry and will help AET’s reduce its fleet’s greenhouse gas (GHG) emissions intensity by 40% by 2030, leading to net-zero GHG emissions by 2050. This facility also offers a fixed ceiling rate and there will be no compounding of charges in the event of late payments. Maybank has given out RM53b from Jan 2021-3Q2023 and plans to hit RM80b in sustainable financing by 2025. Maybank is sole financier while Maybank Investment Bank is the sustainability structuring adviser for the RCF-i.