KUALA LUMPUR: Petronas Gas Bhd is considering setting up a RM5bil Islamic bond programme to part finance the construction of regasification plants, three people familiar with the deal said.
The gas distribution arm of Petroliam Nasional Bhd invited proposals from investment banks to arrange the debt sale, said the people, who asked not to be named as the details are private.
A sale would be the company’s second offering of sukuk. It sold RM860mil of syariah-compliant notes in August via unit Kimanis Power Sdn Bhd to part finance a power plant, with maturities ranging from 2016 to 2028.
The 5.05% notes due in 2023 yielded 4.23% on Wednesday, according to data compiled by Bloomberg.
Petronas Gas started building its first regasification plant in Malacca in 2010 to meet rising domestic demand. The terminal is expected to begin commercial operations in the second quarter of this year, the company said in November.
The group is also planning similar facilities in Johor and Sabah, according to its latest annual report.
Petronas Gas chief executive officer Samsudin Miskon could not be immediately reached for comments.
Global Islamic bond sales have dropped 18% this year to US$10.3bil (RM32bil), after reaching a record US$46.5bil (RM144bil) last year, according to data compiled by Bloomberg.
Average sukuk yields have climbed 10 basis points, or 0.1 percentage point, to 2.91% this year, 24 basis points off an all-time low reached in January, according to the HSBC/Nasdaq Dubai US Dollar Sukuk Index.
(The Star Online / 29 March 2013)
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com