Malaysia Airports Holdings raises MYR 500 million in sukuk for terminal
Malaysia Airports Holdings Bhd (MAHB) announced that it was able to raise MYR 500 million from its offering of Islamic bonds or sukuk. The proceeds would help fund a terminal for budget carriers. The construction of the terminal was initially estimated to cost MYR 3.1 billion. Numerous delays, however, had increased the cost to MYR 4 billion. MAHB earlier informed Reuters that the firm intended to raise MYR 1 billion by issuing Islamic bonds to help finance the new terminal.
The sukuk offering was oversubscribed by a little over three times, MAHB said in a statement. Corporate buyers, government agencies and financial institutions participated in the round. MAHB advisors for the sukuk issuance included CIMB Investment Bank Berhad, HSBC Amanah Malaysia Berhad, Citibank Berhad and Maybank Investment Bank Berhad.
More visitors are now using Malaysia as a gateway to the rest of Southeast Asia. MAHB was set to construct the Kuala Lumpur International Airport 2. The budget airlines terminal would be the largest in the world. It would be catering to 45 million passengers annually.