Syarikat Pengurusan Air Selangor Sdn Bhd (Air Selangor) has successfully issued RM1.5 billion worth of SRI Sustainability Sukuk, which is the seventh and largest series in their Sukuk Murabahah programme.
The sukuk issuance is divided into five tranches with repayment periods ranging from 7 to 25 years, and is specifically designed to support the financing of projects under Air Selangor’s Sustainable Development Framework.
Among the key projects to be financed are the Rasau Water Supply Scheme and pipe replacement works.
According to Air Selangor’s Chief Executive Officer, Adam Saffian Ghazali, this move supports the company’s long-term financing strategy in terms of sustainability.
The sukuk, which has been given an AAA rating by RAM Rating Services Bhd, has recorded an excellent response, with bookings of RM3.77 billion, approximately 2.5 times the amount offered.
In its implementation, Bank Islam acted as the lead advisor, lead arranger and sharia advisor, while CIMB Investment Bank Bhd and Maybank Investment Bank Bhd acted as joint lead managers.
With the issuance of this sukuk, Air Selangor now has a strong sustainable source of funds to implement efforts to improve water infrastructure, replace obsolete pipes and improve the quality of water supply for the long term.
