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Sunday, 27 December 2015

Malaysia: Samalaju Port’s $219m sukuk; Sasbadi’s $7.34m in private placement

Port operator Samalaju Industrial Port looks to raise $219.5 million through bonds while Sasbadi raises funds through private placement, in Malaysian corporate fundraising news over the week leading up to Christmas.

Samalaju Industrial Port seeks $219.5m funds via Islamic bond issuance

Samalaju Industrial Port Sdn Bhd is looking to raise up to MYR950 million ($219.5 million) via sukuk issuance to finance the construction of its 156 ha deep-sea Samalaju Port in Sarawak.
RAM Ratings said, Samalaju will be the operator of the MYR1.9 billion Samalaju Port upon its expected completion by the fourth quarter of financial year 2016, under a 40-year contract.
The construction of the port will also be financed with a government grant of MYR500 million, and an equity injection from Samalaju’s parent company Bintulu Port Holdings Bhd of MYR600 million.
The ratings agency has assigned an AA1(s)/stable rating to Samalaju’s proposed Sukuk Murabahah programme.
“In view of Bintulu Port’s solid relationship with the Malaysian government — given the latter’s shareholdings in Bintulu Port through various government agencies, the Sarawak government and Petronas (Petroliam Nasional Bhd) — the state is seen as having an incentive to provide the company with financial assistance, which includes subscribing to a portion of the proposed sukuk, if necessary,” the statement said.

Sasbadi to raise $7.34m through private placement

Sasbadi Holdings Bhd has proposed to undertake a private placement to raise up to MYR31.75 million ($7.34 million), to part finance future acquisition of publishing, education, education-related business(es) or intellectual property rights, to repay bank borrowings and for working capital.
Based on an indicative issue price of MYR2.50 per placement share, Sasbadi said, in a Bursa Malaysia filing, the proposed private placement will involve the issuance of up to 12.7 million new shares or 10 per cent of the issued share capital of Sasbadi. The issue price will be determined and announced later.
The education book publisher Sasbadi said the placement shares shall be priced at not more than 10 per cent to the five-day volume weighted average market price of Sasbadi, but not lower than the par value of Sasbadi shares of MYR0.50 each.
“The board of directors is of the view that the proposed private placement is the most appropriate avenue of fund raising as it enables Sasbadi to raise funds to partly pare down its borrowings, which would give rise to interest savings of MYR500,000 per year,” the group said in the announcement.
It also noted that it would be able to raise additional funds without incurring interest expenses or service principal repayments compared with conventional bank borrowings or the issuance of debt securities.
“This would allow Sasbadi to preserve cash flow for reinvestment and/or operational purposes,” it added.
The group is also proposing a share split involving the subdivision of every one existing share of 50 sen each in Sasbadi into two shares of 25 sen each on an entitlement date to be determined and announced later, to enhance the stock’s marketability and trading liquidity.
(Deal Street Asia / 25 December 2015)
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