Affin Investment Bank Bhd said yesterday it has been appointed principal adviser and lead arranger for the proposed RM752.24mil Sukuk Mudharabah to be issued by Manfaat Tetap Sdn Bhd.
In a statement, Affin Investment said Manfaat Tetap, a wholly owned subsidiary of Sistem Lingkaran-Lebuhraya Kajang Sdn Bhd (SILK), was a special purpose vehicle set up to refinance SILK’s existing RM2.01bil Al-Bai Bithaman Ajil Islamic debt securities (BaIDS).
SILK is a wholly owned subsidiary of Sunway Infrastructure Bhd, which was granted the 36-year concession to design, construct, manage, operate and maintain the SILK Highway.
A signing ceremony was held last Thursday between the principal parties and primary subscribers of the Sukuk, the statement added.
Affin Investment managing director Maimoonah Hussain said in the statement: “The proposed Sukuk Mudharabah represents an innovative and possibly the first of its kind, refinancing proposal structured by Affin Investment.
“It allows the repayment obligations of SILK to vary with the actual traffic volume generated by the SILK Highway and provides for a profit rate payable to the investors in a manner which allows investors to share in the excess revenue of the highway.”
Pursuant to the refinancing proposal, some of the existing BaIDS holders would be offered the option of subscribing to Sukuk Mudharabah totalling about RM541.5mil after receiving part cash settlement, Affin Investment said.
The remaining BaIDS holders would be paid in cash, with the settlement amount of about RM210.7mil after netting, among others, the cash from the existing designated accounts under the BaIDS, it added.
The proposed sukuk , which will be issued at par, has a tenure of up to 21 years from the date of issuance. The primary source of redemption of the proposed sukuk shall be “from the periodic Ijarah rental payments payable by SILK to Manfaat Tetap pursuant to the sale and leaseback agreement between SILK and Manfaat Tetap,” the statement said.