MAHB is pleased to announce that on 22 November 2024, the Company has successfully issued a triple-tranche Senior Sukuk Wakalah in aggregate of RM1.6 billion in nominal value (“Sukuk Issuance”) from its Sukuk Wakalah Programme, with the following salient terms:

The Senior Sukuk Wakalah issued under the Sukuk Wakalah Programme carries a credit rating of “AAA” with a stable outlook by RAM Rating Services Berhad in September 2024 and the proceeds from the Sukuk Issuance shall be utilised by MAHB Group of Companies for working capital requirements, capital expenditure, general investments, general corporate purposes, refinancing of existing borrowings or financings of MAHB Group and/or defrayment of fees and expenses under the Sukuk Wakalah Programme, all of which shall be Shariah compliant.

The Sukuk Issuance marks MAHB’s successful return to the debt capital markets since its last issuance in 2022 during the Covid-19 pandemic. The aviation industry has since witnessed a robust recovery, with MAHB Group registering 10.2% increase in passenger volume in September 2024 from the 10.4 million passengers recorded in September 2023. This strong recovery showcases the resilience of the aviation sector and MAHB’s ability to adapt and grow in a challenging environment, and further supports MAHB’s strategic return to the Malaysian debt capital markets.

The offering attracted a diverse investor base and generated robust demand, achieving a peak orderbook in excess of RM5.7 billion, which represents both an oversubscription rate of more than 3.6 times and the largest orderbook ever achieved by MAHB compared to its past Senior Sukuk issuance. On the back of a strong and healthy orderbook, MAHB successfully tightened its offering yield and achieved a final profit rate of 3.95% p.a., 4.02% p.a. and 4.08% p.a., representing the tightest spread ever achieved by MAHB across the respective tenors.

HSBC Amanah Malaysia Berhad, Maybank Investment Bank Berhad and RHB Investment Bank Berhad are the Joint Lead Managers for the Sukuk Issuance.

This announcement is dated 22 November 2024.