Perak Transit Berhad to issue RM300 million Sukuk under its first Islamic Medium Term Notes Programme
UOB Malaysia to be the sole subscriber of the Sukuk
Ipoh, Perak, Malaysia, 20 September 2019 – Perak Transit Berhad (PTRANS) announced its plan to issue RM300 million Sukuk Murabahah in October 2019 to which United Overseas Bank (Malaysia) Bhd (UOB Malaysia) will be the sole subscriber. The unrated Sukuk Murabahah will be the first tranche of Islamic notes to be issued under PTRANS’ RM500 million 15-year Islamic Medium Term Notes (IMTN) Programme, the company’s first IMTN programme.
The proceeds will be used to refinance existing borrowings, to finance the company’s capital expenditure and working capital for existing and new projects.
Dato’ Sri Cheong Kong Fitt, Managing Director of PTRANS, said that the IMTN programme will help PTRANS to reach the next level of growth and to drive cost efficiency through lower financing cost. This enables PTRANS to deliver more value to its new and existing shareholders and stakeholders.
“With the support of UOB Malaysia, PTRANS will be able to develop integrated public transportation terminals in other parts of Perak as well as in other regions across Malaysia to provide better transportation infrastructure services to the public at large.”
UOB Malaysia also acts as the Principal Adviser, Lead Arranger, Lead Manager and Facility Agent for the entire RM500 million IMTN Programme.
Mr Wong Kim Choong, Chief Executive Officer of UOB Malaysia said, “UOB Malaysia has a strong track record in the Islamic capital markets, having been involved in a number of significant Islamic capital-raising exercises over the years. Islamic financing solutions are integral to the comprehensive suite of products and services we offer to support companies in achieving their strategic goals. UOB Malaysia is proud to be supporting PTRANS’ first Islamic MTN programme and subscribing to the programme’s first tranche of Islamic notes.”
PTRANS was first listed on the ACE Market of Bursa Malaysia on 6 October 2016 before successfully transferring to the Main Market of Bursa Malaysia on 19 December 2018 under the Consumer Products and Services Sector.