KPJ Healthcare returns with maiden wakalah sukuk

The offering is done via Point Zone and the sukuk was upsized to RM650m due to high demand

by ASILA JALIL

Ahmad Shahizam says the phenomenal support from the investors towards the transaction is a clear indication of market confidence in KPJ group’s business strategy

Source:

KPJ Healthcare Bhd has returned to the local sukuk market with its maiden wakalah sukuk offering of RM650 million under the RM3 billion “Sukuk wakalah” programme.

In a statement yesterday, the company said the sukuk offering which is done via its wholly owned subsidiary, Point Zone (M) Sdn Bhd, is the first by a healthcare industry player in the local sukuk market.

“The sukuk was upsized to RM650 million from the initial amount of RM500 million due to the high demand from investors.

“Proceeds from the issuance will be utilised by KPJ Healthcare for Shariah-compliant financing including business expansion, working capital and general corporate purposes relating to healthcare for the KPJ group,” it said.

The sukuk wakalah programme has been assigned a rating of AA-IS(CG) (stable) by the Malaysian Rating Corp Bhd.

KPJ Healthcare president and MD Ahmad Shahizam Mohd Shariff said the sukuk signifies KPJ Healthcare’s success in returning to the local capital market after a decade without any issuance.

“We are happy with the strong support we have received from the investors for the issuance. The phenomenal support from the investors towards the transaction is a clear indication of market confidence in KPJ group’s business strategy in our efforts to create sustainable long-term value for our stakeholders, supported by our track record of over four decades in the private health industry in Malaysia,” he said.

The company added that the negotiation process which began on Feb 23 had received overwhelming demand from various investors in the capital market, involving institutional investors including fund managers, insurance companies, government-linked companies, banking institutions and high net worth investors.

The total subscription received in the final process stood at RM6.7 billion, and it was oversubscribed by 10.3 times.

Maybank Investment Bank Bhd and OCBC Al-Amin Bank Bhd are the joint principal advisors, joint lead arrangers and the joint sustainability structuring advisors for the programme, while Affin Hwang Investment Bank, HSBC Amanah Malaysia Bhd, Maybank Investment Bank and OCBC Al-Amin act as the joint lead managers.

KPJ Healthcare closed one sen or 0.97% higher yesterday at RM1.04, bringing its market capitalisation to RM4.69 billion.

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