Tuesday, 17 April 2012

JCorp sukuk may yield less than AAA issuers

Johor Corp, an unrated Malaysian investment company, will probably pay less than AAA issuers to sell US$976 million of sukuk on local-government guarantees, according to MCIS Zurich Insurance Bhd and Bangkok Bank Bhd.

Johor Corp, which defaulted on its debt in 2001, may price the 10-year Islamic notes to yield 30 basis points more than non-Islamic sovereign bonds, equivalent to 3.83 per cent yesterday, the Kuala Lumpur-based units of MCIS Zurich and Bangkok Bank say. Builder Pembinaan BLT Sdn paid 4.13 per cent for a similar offering last month and highway operator PLUS Bhd set a coupon rate of 4.4 per cent on its syariah-compliant securities. Both issuers are rated AAA.

The investment unit is owned by Malaysia’s southern-most state of Johor, which is seeking to transform itself from one of the poorest regions in the country by building ports, oil facilities and industrial complexes to compete with richer neighbour Singapore.

No comments:

Post a Comment