Friday, Oct 12, 2007
KUALA LUMPUR (Dow Jones)--Toll road operator PLUS Expressways Bhd. (5052.KU) said Friday it proposes to issue MYR3.55 billion in senior sukuk, or Islamic bonds, under the musyarakah principle in order to make its existing debt Shariah-compliant.
The proposed issue is to convert the same amount in existing Islamic debt securities so that "there shall be no proceeds raised from the proposed issue," it said in a brief statement.
The musyarakah principle refers to a partnership or joint venture where profits and losses are shared. Profits are distributed according to agreed ratios, while losses are born according to equity participation.
The proposed issue will also allow PLUS to continue being "globally Shariah-compliant" after buying unlisted toll concessionaires Expressway Lingkaran Tengah Sdn. Bhd. and Linkedua (Malaysia) Bhd. in June.
It will also open up the way for participation from global Islamic investors, "especially those from the Gulf Cooperation Council (GCC) market," it added.
The senior sukuk issue is proposed in four tranches of MYR550 million each, two tranches each of MYR300 million and MYR100 million, and one tranche each of MYR350 million and MYR200 million.
Each tranche has a tenor of one year and will mature consecutively from 2008 and up to 2017.
CIMB Investment Bank Bhd. has been appointed sole principal adviser, sole lead manager and lead arranger for the proposed issue.
-By E-Ling Liaw, Dow Jones Newswires; (603) 2692 5254, e-ling.liaw@dowjones.com
(END) Dow Jones Newswires
12-10-07 0936GMT
