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October 2008 GCC Compliant Sukuk Programme to be Issued by Projek Lintasan Shah Alam Sdn Bhd Kuala Lumpur, 21 October 2008: RHB Banking Group has successfully structured and lead arranged a Sukuk Programme for Projek Lintasan Shah Alam Sdn Bhd (PLSA). Notably, the Sukuk Programme is Gulf Cooperation Council (GCC) compliant. PLSA, a private limited company, is a joint venture between two shareholders, namely Projek Lintasan Kota Holdings Sdn Bhd (Prolintas) and Island & Peninsular Sdn Bhd (I&P), which are wholly owned subsidiaries of Permodalan Nasional Berhad (PNB). 
From left: Chay Wai Leong, Managing Director of RHB Investment Bank Bhd, Ir. Zainudin Abdul Kadir, Chief Executive Officer of Projek Lintasan Shah Alam Sdn Bhd, Dato’ Abdullah Mat Noh, Chairman of RHB Investment Bank Bhd, Tan Sri Dato’ Hamad Kama Piah Bin Che Othman, Chairman of Projek Lintasan Shah Alam Sdn Bhd, Datuk Haji Faisal Siraj, Chairman of RHB Islamic Bank Berhad, and Jamelah Jamaluddin, Managing Director of RHB Islamic Bank Berhad, at the Signing Ceremony for the Sukuk Issuance Programme. PLSA has been awarded a forty-year concession to undertake the design, construction, management, operation and maintenance of the 14.7 kilometre Lebuhraya Kemuning – Shah Alam (LKSA) highway when it signed the Concession Agreement with the Federal Government on 27 November 2006. RHB Islamic Bank Berhad and RHB Investment Bank Berhad, as Joint Principal Advisers and Joint Lead Arrangers have been appointed by the company to raise funds for the construction and development of the highway. The Sukuk will be issued under two Islamic principles, namely Ijarah and Mudharabah. Under the proposed Islamic structure, PLSA shall invite the investors i.e. the Sukuk Mudharabah to participate in the toll road business (the “Mudharabah Venture”). PLSA acting as Mudharib (entrepreneur) in the M udhabarah Venture shall also invite other investors namely the Ijarah Sukukholders (the “Lessor”) to partake in the construction and development of the highway. The Mudharib shall then make a declaration of trust on the highway in favour of the Lessor where upon completion, the highway will be leased to the Mudharib for an agreed period . The Sukuk Ijarah issuance, amounting up to RM330 million shall rank in priority over the Sukuk Mudharabah of up to RM415 million of which, the latter has strong equity-like features. This is a landmark transaction for PLSA as it represents its first foray for the PLSA Group of Companies into the Islamic capital markets. Expected to take three years for completion with the commencement of commercial operation by August 2010, the highway shall traverse from the Shah Alam Expressway (KESAS) in the south towards the Federal Highway Route 2 in the north, linking KESAS’s Kota Kemuning Interchange to Federal Highway Clover Leaf Interchange. Total budgeted project cost for LKSA is estimated at RM700 million, while land acquisition cost will be borne by the Government. The Sukuk Programme will be issued by PLSA in tranches. In terms of tenure, the Sukuk Mudharabah shall have a maximum of 29 years whilst a maximum of 19 years for the Sukuk Ijarah. RAM Rating Services Bhd (RAM Ratings) has assigned long term rating of A1 to the Sukuk Ijarah and long term rating of A3 to the Sukuk Mudharabah. Signing on behalf of PLSA was its Chief Executive Officer, Ir. Zainudin A. Kadir while Managing Directors Jamelah Jamaluddin and Chay Wai Leong signed on behalf of RHB Islamic and RHB Investment Bank respectively. Speaking at the ceremony, RHB Islamic Chairman, Yang Berbahagia Datuk Haji Faisal Siraj said, “Unlike other Shariah-based structures available in the market, this Sukuk Programme which is GCC compliant will make its way towards greater access to wider investors base comprising both local and international investors, Islamic or otherwise”. PLSA’s decision to embark on the issuance of sukuk is indeed in line with the Government’s objective of developing the Malaysian Islamic capital market. This issuance further support the Government’s aspiration to promote the issuance of Islamic capital market’s instruments by Malaysian companies. Specific covenants and undertakings have been incorporated into the programme to provide additional comfort to investors. Coupled with the excellent support from the Government for the promotion of Islamic banking instruments, the companies are optimistic that the partnership and project will be beneficial to all. Issued by Group Corporate Communications Division, RHB Capital Berhad. For more information, please call Eza Dzul Karnain at 012-3420060 or Sandra Foo at 012-3188412. Note to Editor Projek Lintasan Shah Alam Sdn Bhd is a subsidiary of Projek Lintasan Kota Holdings Sdn Bhd that has been awarded from the Government with the concession to build, manage and maintain the Lebuhraya Kemuning – Shah Alam (LKSA). The 14.7 km (including six interchanges) LKSA will be a three-lane, dual carriageway, providing a high-speed link to the Federal Highway. LKSA will start at the existing KESAS Kota Kemuning Interchange and traverse northeast over Jalan Bukit Kemuning, Jalan Mantap, Sg Klang, Bulatan Jubli Perak, Persiaran Sultan and Bulatan Selangor towards Federal Highway. Contact Person RHB Islamic Bank Berhad It is the first full-fledged Islamic bank to mature from an Islamic banking window operations of a conventional bank. RHB Islamic Bank offers the full range of Shariah-based banking and financial products and services, available at not only more than 180 RHB Bank and RHB Islamic Bank branches nationwide but also through RHB PhoneBanking and Internet Banking facilities. It has won a number of international awards for its innovative range of products. RHB Islamic Bank offers consumer, corporate, commercial and electronic banking solutions which include Savings and Current Accounts, financing facilities, Collection, Payment and Trade Services as well as Investment Banking, Capital Market and Treasury Products. The corporate office is at Level 11, Menara Yayasan Tun Razak, Jalan Bukit Bintang, Kuala Lumpur. Contact Person RHB Investment Bank Berhad RHB Investment Bank is principally involved in the business of investment banking which includes merchant banking business, dealing in securities, stock, debt and derivatives, stock-broking business and the business of brokers and dealers in futures and option contracts. The principal activities of RHB Investment Bank Group consist of the business of investment banking which includes merchant banking business, dealing in securities, stock, debt and derivatives, stock-broking business and the business of brokers and dealers in futures and options contracts, unit trust management, asset management, research services and provision of nominee services. Contact Person  |
