Latest news with #IslamicMedium-TermNotes
The Star
4 days ago
- Business
- The Star
PHB receives RAM Ratings' AAA/Stable ratings
KUALA LUMPUR: Pelaburan Hartanah Bhd (PHB) has received an affirmation of its AAA/Stable/P1 corporate credit ratings, as well as the AAA/Stable ratings for its RM5.0 billion Islamic Medium-Term Notes (IMTN) programme and Islamic Commercial Papers (ICP) (2024/2031) by RAM Ratings. The real estate investment holding arm of Yayasan Pelaburan Bumiputra (YPB) said the rating affirmation reflects PHB's sound financial profile, measured cost management, and its role in supporting national objectives to enhance Bumiputera participation in commercial real estate through Amanah Hartanah Bumiputera (AHB), a Shariah-compliant unit trust fund. PHB Group managing director and chief executive officer Mohamad Damshal Awang Damit said the affirmation of the company's credit rating reflects market confidence in PHB's resilient fundamentals and prudent approach to capital and portfolio management. "We remain focused on generating long-term value while upholding our mandate to drive inclusive economic participation through real estate investment," he said in a statement today. As part of its strategic pivot, PHB is rebalancing its portfolio exposure away from office assets and towards more resilient and demographically supported sectors such as industrial, healthcare and education. "PHB's role in national development remains central to our operations, as we continue to enhance Bumiputera access to institutional-grade real estate through AHB, contributing to inclusive and sustainable economic growth," said Mohamad Damshal. AHB is currently valued at RM5 billion, benefiting more than 82,000 Bumiputera investors in Malaysia with a stable stream of yearly dividends ranging from 4.7 per cent to 7.5 per cent between 2011 and 2025. In the financial year ended December 2024 (FY2024), PHB reported a 17 per cent increase in revenue to RM464 million, compared to FY2023's RM396 million, supported by stronger rental income and improved occupancy across its portfolio. Operating efficiency also improved, with property-related costs contained at just 1.2 per cent year-on-year at RM177 million versus FY2023's RM175 million, due to the insourcing of facility and lease management services. Consequently, the net property income (NPI) margin strengthened to 61 per cent compared to the previous year's 56 per cent. As of end-2024, PHB maintained a healthy financial profile with a gearing ratio of 0.29 times, compared to end-2023's 0.23 times, and a cash-to-short-term debt ratio of 4.1 times versus 1.2 times at end-2023. -- BERNAMA TAGS: PHB, AHB, RAM Ratings, Mohamad Damshal Awang Damit
The Star
08-07-2025
- Business
- The Star
Bursa Malaysia dips as Trump's 25% tariff on Malaysia rattles investors
From left: Maybank global banking group CEO Datuk John Chong, Maybank Investment Bank Bhd CEO Michael Oh-Lau, Perbadanan Bekalan Air Holdings Bhd group CEO Datuk Ir Pathmanathan K, Penang Chief Minister Chow Kon Yeow, UOB Malaysia CEO Ng Wei Wei and UOB Malaysia head of wholesale banking, northern area centre Teoh Soon Beng. KUALA LUMPUR: United Overseas Bank (Malaysia) Bhd (UOB Malaysia) and Maybank Investment Bank Bhd (Maybank IB) have been appointed as joint principal advisers, joint lead arrangers, and joint lead managers for Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP)'s inaugural RM5bil Islamic Medium-Term Notes (IMTN) Programme (Sukuk Programme). Maybank IB also served as the sole sustainability structuring adviser for PBAPP's new Sustainable Finance Framework, which follows guidelines from the Securities Commission and other regional and international sustainable finance standards. In a joint statement, UOB Malaysia country head of wholesale banking Andy Cheah said the RM5bil sukuk programme will fund critical water projects to ensure long-term water security for Penang, addressing rising demand and challenges such as limited water resources and climate change. 'The sukuk programme also highlights the important role banks play in mobilising capital for sustainable financing and demonstrates how we leveraged our capabilities to deliver real change in public sector infrastructure,' he added. Maybank IB chief executive officer Michael Oh-Lau: 'Maybank is honoured to support PBAPP for the simultaneous establishment of its sukuk programme and Sustainable Finance Framework — a historic first for Penang, and one that sets a strong precedent for other state government-linked companies.' 'Malaysia's debt capital markets remain one of the most developed and liquid in the region, with over RM120bil in private debt securities issued annually coupled with a steady growth of sustainability-labelled issuances year on year. Through this sukuk programme, PBAPP is now well-positioned to benefit from deep and diverse investor liquidity, competitive pricing and greater funding flexibility over time.' Proceeds from the sukuk will fund PBAPP's Water Contingency Plan 2030 (WCP 2030), support capital and operational expenses including refinancing, and finance eligible green and social initiatives under its Sustainable Finance Framework. PBAPP is the first Penang state agency to launch both a sukuk programme and a Sustainable Finance Framework. The shariah-compliant sukuk Wakalah structure allows it to raise sustainable, long-term funding from Malaysia's capital markets. PBAPP's sukuk programme received a AAA/Stable rating from RAM Ratings Services Bhd, reflecting strong credit fundamentals. Its Sustainable Finance Framework also earned a Gold rating from RAM Sustainability for strong governance, transparency, and alignment with global standards.
The Star
08-07-2025
- Business
- The Star
UOB Malaysia, Maybank IB support PBAPP's RM5bil sukuk for water infrastructure
From left: Maybank global banking group CEO Datuk John Chong, Maybank Investment Bank Bhd CEO Michael Oh-Lau, Perbadanan Bekalan Air Holdings Bhd group CEO Datuk Ir Pathmanathan K, Penang Chief Minister Chow Kon Yeow, UOB Malaysia CEO Ng Wei Wei and UOB Malaysia head of wholesale banking, northern area centre Teoh Soon Beng. KUALA LUMPUR: United Overseas Bank (Malaysia) Bhd (UOB Malaysia) and Maybank Investment Bank Bhd (Maybank IB) have been appointed as joint principal advisers, joint lead arrangers, and joint lead managers for Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP)'s inaugural RM5bil Islamic Medium-Term Notes (IMTN) Programme (Sukuk Programme). Maybank IB also served as the sole sustainability structuring adviser for PBAPP's new Sustainable Finance Framework, which follows guidelines from the Securities Commission and other regional and international sustainable finance standards. In a joint statement, UOB Malaysia country head of wholesale banking Andy Cheah said the RM5bil sukuk programme will fund critical water projects to ensure long-term water security for Penang, addressing rising demand and challenges such as limited water resources and climate change. 'The sukuk programme also highlights the important role banks play in mobilising capital for sustainable financing and demonstrates how we leveraged our capabilities to deliver real change in public sector infrastructure,' he added. Maybank IB chief executive officer Michael Oh-Lau: 'Maybank is honoured to support PBAPP for the simultaneous establishment of its sukuk programme and Sustainable Finance Framework — a historic first for Penang, and one that sets a strong precedent for other state government-linked companies.' 'Malaysia's debt capital markets remain one of the most developed and liquid in the region, with over RM120bil in private debt securities issued annually coupled with a steady growth of sustainability-labelled issuances year on year. Through this sukuk programme, PBAPP is now well-positioned to benefit from deep and diverse investor liquidity, competitive pricing and greater funding flexibility over time.' Proceeds from the sukuk will fund PBAPP's Water Contingency Plan 2030 (WCP 2030), support capital and operational expenses including refinancing, and finance eligible green and social initiatives under its Sustainable Finance Framework. PBAPP is the first Penang state agency to launch both a sukuk programme and a Sustainable Finance Framework. The shariah-compliant sukuk Wakalah structure allows it to raise sustainable, long-term funding from Malaysia's capital markets. PBAPP's sukuk programme received a AAA/Stable rating from RAM Ratings Services Bhd, reflecting strong credit fundamentals. Its Sustainable Finance Framework also earned a Gold rating from RAM Sustainability for strong governance, transparency, and alignment with global standards.
The Sun
08-07-2025
- Business
- The Sun
PBAPP launches RM5 bil sukuk for Penang water infrastructure
GEORGE TOWN: Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) has unveiled its inaugural RM5 billion Islamic Medium-Term Notes (IMTN) Programme to enhance water infrastructure and long-term supply stability in Penang. The sukuk, structured under the Shariah-compliant Sukuk Wakalah model, aligns with PBAPP's newly launched Sustainable Finance Framework. Chief Minister Chow Kon Yeow, who chairs PBAPP, stated that the sukuk issuance will provide long-term capital for critical water projects while adhering to sustainable and Islamic financing principles. He highlighted that the programme received a AAA/Stable credit rating from RAM Rating Services Bhd, with the framework earning a Gold Sustainable Finance Rating from RAV Sustainability Sdn Bhd. United Overseas Bank (UOB) Malaysia and Maybank Investment Bank Bhd (Maybank IB) are the joint principal advisers and lead managers for the sukuk. Maybank IB also acts as the sole sustainability structuring adviser. Proceeds will fund PBAPP's Water Contingency Plan 2030, operational costs, refinancing, and eligible green initiatives. PBAPP is the first Penang state-linked agency to adopt both a sukuk programme and a Sustainable Finance Framework. UOB Malaysia's Andy Cheah emphasised the role of banks in mobilising sustainable financing, while Maybank IB's Michael Oh-Lau noted Malaysia's robust debt capital market, with over RM120 billion in annual private debt issuances. - Bernama
The Star
08-07-2025
- Business
- The Star
Proposal to delay water tariff hike will cost Penang govt RM40mil, says CM
GEORGE TOWN: The Penang Water Supply Corporation's (PBAPP) plan to delay water tariff increases by six months will cost the state government RM40mil, says Chief Minister Chow Kon Yeow. Chow, who is also PBAPP chairman, said the decision reflected the state's commitment to easing financial burdens on the people while continuing to invest in critical water infrastructure. "We do not want to implement it early next year; we hope to delay it to the middle of next year,' he told a press conference on Tuesday (July 8) after the launch of PBAPP's new RM5bil Islamic Medium-Term Notes (IMTN) Programme. Chow said IMTN represents an alternative funding avenue, opening up opportunities for investors to fund necessary water projects and help subsidise tariffs. He said PBAPP should not be judged solely on tariff rates, adding that the corporation is actively working to enhance efficiency, reduce operational costs, and implement essential infrastructure upgrades. These include booster pump stations and expanded pipe distribution networks, he added. Acknowledging the limitations of internal funding and cost-cutting, he said, PBAPP is tapping into private financing initiatives and working with Pengurusan Aset Air Berhad (PAAB) to fund large-scale projects. He said these efforts aim to ensure that PBAPP does not have to raise capital on its own. Under a leaseback model with PAAB, selected water infrastructure projects will be financed and repaid over a 30- to 45-year period. One such project is the Mengkuang Water Treatment Plant, which is being financed through sukuk issuance to cover contractor payments. Based on the Syariah-compliant Sukuk Wakalah structure, it will allow PBAPP to raise medium to long-term financing through Malaysian capital markets.
