SEPANG- Malaysia Airports (the Group) announced today that it has successfully priced and issued its third Senior Sukuk Wakalah (“Sukuk Issuance”) of RM1.6 bi lion under its Sukuk Wakalah Programme up to an aggregate limit of RM5.0 bi lion in nominal value. Overwhelming investor demand led to an oversubscription rate of more than 3.6 times at its peak. The triple-tranche offering comprises a 5-year RM400 million Senior Sukuk Wakalah, a 7-year RM600 million Senior Sukuk Wakalah and a 10-year RM600 million Senior Sukuk Wakalah.

Dato’ Mohd Izani Ghani, managing director of Malaysia Airports said, “The Sukuk Issuance is a testament to the strong confidence that investors have in Malaysia Airports. It reflects our resilience and our ability to navigate chalenges while remaining focused on long-term value creation. Moving forward, we aim to be a regular issuer in the Malaysian debt capital markets to support our growth and operational needs. Additionaly, we aspire to raise sustainable financing as part of our efforts to align with net-zero goals and advance our ESG agenda.”

The Sukuk Issuance marks Malaysia Airports’ 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 the Group registering a 10.2% increase in passenger volume in September 2024 from the 10.4 million passengers recorded in September 2023. This recovery showcases the resilience of the aviation sector and Malaysia Airports’ ability to adapt and grow in a chalenging environment, and further supports the Group’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 Malaysia Airports compared to its past Senior Sukuk issuance. On the back of a strong and healthy orderbook, Malaysia Airports 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 across the respective tenors.

The Senior Sukuk Wakalah under the Sukuk Wakalah Programme carries a credit rating of “AAA” with a stable outlook by RAM Rating Services Berhad. Proceeds raised from the Sukuk Issuance shal be utilised by Malaysia Airports’ group of companies to refinance its maturing borrowings at a lower funding rate.

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