Malaysia Airports to issue RM1b sukuk for KLIA2

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KLIA2Malaysia Airports Holdings Bhd is considering to sell Islamic bonds worth 1 billion ringgit ($306 million) to finance the construction of a budget terminal whose costs are higher than estimated, Bloomberg reports.

The proceeds would be used for Kuala Lumpur International Airport 2, the extension of the existing international airport. Completion of the terminal is lagging behind the March 2012 deadline after work began in 2010. It had been delayed several times among harsh criticism especially from AirAsia.

The project is now slated to be ready by April 30, 2014. Originally, the costs for the terminal were 3.1 billion ringgit, but later it has been estimated at 4 billion ringgit.

HSBC Holdings Plc, Citigroup Inc, Maybank and CIMB Group Holdings Bhd are the lead arrangers of the sukuk.

The debt is rated AAA, the highest investment grade of RAM Rating Services Bhd, one of the country’s two credit rating agencies.

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Reading Time: 1 minute

Malaysia Airports Holdings Bhd is considering to sell Islamic bonds worth 1 billion ringgit ($306 million) to finance the construction of a budget terminal whose costs are higher than estimated, Bloomberg reports.

Reading Time: 1 minute

KLIA2Malaysia Airports Holdings Bhd is considering to sell Islamic bonds worth 1 billion ringgit ($306 million) to finance the construction of a budget terminal whose costs are higher than estimated, Bloomberg reports.

The proceeds would be used for Kuala Lumpur International Airport 2, the extension of the existing international airport. Completion of the terminal is lagging behind the March 2012 deadline after work began in 2010. It had been delayed several times among harsh criticism especially from AirAsia.

The project is now slated to be ready by April 30, 2014. Originally, the costs for the terminal were 3.1 billion ringgit, but later it has been estimated at 4 billion ringgit.

HSBC Holdings Plc, Citigroup Inc, Maybank and CIMB Group Holdings Bhd are the lead arrangers of the sukuk.

The debt is rated AAA, the highest investment grade of RAM Rating Services Bhd, one of the country’s two credit rating agencies.

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