Trending Now
08 March 2023. Wednesday
KUALA LUMPUR (March 7): KPJ Healthcare Bhd has successfully priced its inaugural RM555 million sustainability sukuk offering under its RM3 billion sukuk wakalah programme.
“The issuance has garnered overwhelming interest from fixed-income investors with a bid-to-cover ratio of close to 10 times,” the healthcare provider said, adding that the strong demand led to an upsize of the issuance size from the initial RM450 million to RM555 million with price tightening of 20 basis points across the five-year, seven-year and 10-year sukuk offering with profit rates of 4.5%, 4.69%, and 4.86% respectively.
In a statement, KPJ Healthcare said the offering via its wholly owned subsidiary Point Zone (M) Sdn Bhd marks a pioneering issuance by a private healthcare provider in Malaysia and the Asean region.
MARC Ratings Bhd had in November 2022 assigned a final rating of AA-IS(CG) (stable) to the sukuk wakalah programme, the group said.
KPJ Healthcare said utilisation of proceeds from the offering will be in accordance with criteria set out in its sustainability framework, which has been assigned a “Gold” rating by MARC Ratings.
According to the sustainability framework stated on KPJ Healthcare’s website, proceeds from the issuance can be used for capital expenditure, working capital, refinancing of existing borrowings, and other expenses, so long as they are not used to fund new or existing assets outside of the eligible assets.
KPJ Healthcare officer-in-charge Norhaizam Mohammad said the sustainability sukuk offering reflects the group’s commitment to championing the sustainability agenda, and also serves as a testament to its efforts in achieving a balance between economic ambitions, social goals and environmental considerations.
“We are resolute in prioritising the well-being of individuals or communities under our care as well as the environment, as we strive for a sustainable business performance,” he said.
Shares in KPJ Healthcare ended two sen or 1.77% higher at RM1.15 on Tuesday (March 7), giving the group a market capitalisation of RM5.21 billion.
