Photo by Zahid Izzani/The Edge

KUALA LUMPUR (Aug 19): Pengurusan Air Selangor Sdn Bhd (Air Selangor) has raised RM1.2 billion through the issuance of its sixth and largest tranche of Sustainable and Responsible Investment Sukuk Kelestarian Air Selangor (SRI KAS).

The water services provider said this issuance, comprising four series with maturities ranging from 10 to 25 years, marks the completion of its seventh issuance to date under its RM10 billion sukuk murabahah programme.

“We are very pleased with the outcome and strong support from the investors, as reflected in the remarkable oversubscription of 4.95 times.

“It is a testament to investors' continuing confidence in Air Selangor's credit and their recognition and support of our sustainability agenda,” chief executive officer Adam Saffian Ghazali said in a statement on Monday.

He said the proceeds from the issuance will allow Air Selangor to align with the aspirations of the Ministry of Energy Transition and Water Transformation.

“It will further bolster investments in increasing water reserve margins, reducing non-revenue water and ensuring continuous, more efficient, and greener operations of our water infrastructure,” he added.

Backed by solid orders aggregating to RM5.9 billion, the offering was increased by 20% from RM1 billion to RM1.2 billion, according to Air Selangor.

“This support has established Air Selangor’s sixth SRI KAS as the new standard for AAA sukuk issuances. The proceeds would be utilised to finance eligible projects that align with our priority Sustainable Development Goals and our Sustainable Development Sukuk Kelestarian Framework,” it said.

The sukuk murabahah programme, under which the SRI KAS was issued, was reaffirmed with long- and short-term ratings of AAA with a stable outlook and P1 respectively by RAM Rating Services Sdn Bhd on Sept 11, 2023.

Bank Islam Malaysia Bhd served as the principal adviser, lead arranger, and shariah adviser for the sukuk murabahah programme. Bank Islam and CIMB Investment Bank Bhd acted as joint lead managers for the SRI KAS issuance.

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