LPPSA's RM4 Bln Sukuk Issuance Oversubscribed Three Times
Last update: 22/09/2016
KUALA LUMPUR, Sept 22 (Bernama) -- The Public Sector Home Financing Board's (LPPSA) RM4 billion sukuk issuance has been oversubscribed more than three times at highly competitive rates.
In a statement, the statutory body, established under the Public Sector Home Financing Board Act 2015, said the strong demand demonstrated LPPSA's credential as a new sukuk issuer in the market with strong credit standing.
"The sukuk was issued to finance the provision of housing loans to civil servants.
"The RM4 billion Islamic Medium-Term Notes formed part of LPPSA's RM25.0 billion Islamic Commercial Papers/Islamic Medium-Term Notes Programme and is guaranteed by the Malaysian government," it said.
Offered through a book-building process, total orders received were up to RM13.395 billion representing 68 investors.
The sukuk issued in tranches of 3-years to 30-years was priced at 3.5 per cent to 4.90 per cent per annum across tenures.
"There is strong interest in the LPPSA Sukuk, based on the overwhelming turn-out of investors, when we announced the maiden issuance, at the investors' presentation in July 2016.
"We believe that underlying the investors' support is the market confidence on LPPSA's financial strength and solid credit standing as a sustainable self-financing body under the Ministry of Finance entrusted with the provision of housing loans to civil servants." it added.
CIMB Investment Bank Bhd is the facility agent and RHB Islamic Bank Bhd is the Syariah adviser for the financing programme.
-- BERNAMA