18 Jun 2012
Malaysia Airlines (MAS) funding plan is now set with the establishment of the RM2.5billion Perpetual Junior Sukuk Programme.
The Malaysian Pension fund, Kumpulan Wang Persaraan (KWAP) has subscribed RM 1 billion for the first tranche of the MAS Sukuk programme.
Speaking at the signing ceremony for the Sukuk programme, Malaysia Airlines group chief executive officer Ahmad Jauhari Yahya said he was very pleased that KWAP is the first subscriber.
“We are indeed very grateful to KWAP who is the first subscriber of the Perpetual Sukuk programme with RM 1 billion,” Mr Ahmad said.
Mr Ahmad Jauhari Yahva said he was also happy to announce that they have received firm commitments for the remaining RM1.5 billion which therefore deems the Sukuk programme fully subscribed.
“The Perpetual Sukuk enables us to improve our balance sheet and gearing as it is recognized as equity capital under Malaysia accounting standards, but yet provides a relatively reasonable long term funding rate of 6.9 percent,” Mr Ahmad said.
Mr Ahmad added that the programme is the foundation of the airlines funding plan where MAS would be able to launch its operational improvement initiatives on its road back to sustainable profitability.
Principal advisor of the programme, Maybank Investment Bank chief executive officer Tengku Data Zafrul Tengku Aziz said the bank was happy to be assisting the airline turn the company around.
“Together we are at the leading edge of global Islamic finance solutions and Maybank stand privileged to assist MAS in structuring and arranging their first Perpetual Sukuk.”