Wednesday, Jan 26, 2011
KUALA LUMPUR (Dow Jones)--Malaysian state-owned water asset management company Pengurusan Aset Air Bhd. said Wednesday it has successfully priced at the "tightest end of price guidance" MYR2.7 billion ($885 million) worth of Islamic bonds, or sukuk, that had been upsized from an original MYR2.5 billion due to strong demand.
The company said the sukuk that will be issued by its wholly-owned unit Pengurusan Air SPV Bhd. include a 3-year tranche priced at 3.64%, a 5-year at 3.92% and a 10-year tranche at 4.43%, the company said. The sukuk are issued as part of its MYR20 billion Islamic Medium Term Notes program, it added.
Offered through a book-building process, the initial orders received when books opened reached MYR7.1 billion and grew to a high of MYR10.4 billion during the 2-day book-building period, which represents a bid-to-cover ratio of 4.16 times on the initial deal size of MYR2.5 billion, Pengurusan Aset Air said.
"Due to an overwhelming response from investors, the deal was upsized to MYR2.7 billion and was priced at the tightest end of the final price guidance which demonstrates strong investor appetite and ample liquidity in the market for high grade papers, reflected primarily by the strength of the government guarantee in the Sukuk as well as PAAB's credibility and brand goodwill," the company said.
CIMB Investment Bank Bhd. and HSBC Amanah Malaysia Bhd. were the joint lead arrangers and joint lead managers for the exercise.
-By K.P. Lee, Dow Jones Newswires; (603) 2026 1233; kwan-por.lee@dowjones.com
(END) Dow Jones Newswires
26-01-11 1042GMT
