Malaysian Airline System Bhd (MAS) has found a taker for RM1.0bil worth of sukuk,the first tranche of the airline's RM2.5bil sukuk issuance. The RM1.0bil tranche was issued to Kumpulan Wang Persaraan (KWAP) yesterday to help shore up MAS'capital base. MAS chief executive officer Ahmad Jauhari Yahya said firm commitments had also been obtained for the remaining RM1.5bil, with the subscriber 'to be announced in due course'. The RM2.5bil sukuk is a hybrid equity capital structure whereby the bulk of the issue size, if not all, would be recognised as equity capital in MAS' balance sheet and thus improve its gearing. For the first 10 years, the profit rate payable on the sukuk is fixed at 6.9% per year, payable twice a year. Meanwhile, MAS deputy group chief executive officer Mohammed Rashdan Yusof, who is vilified and maligned in the blogosphere, has resigned from his post.  'Business Times

AirAsia X, the long-haul offspring of the region's biggest low- cost carrier (LCC), together with parent company AirAsia, plans to fly to five more destinations in China over the next five years as it is bullish on the growth prospects of the world's second largest economy.

AirAsia X chief executive officer (CEO) Azran Osman-Rani said China is one of the four markets, apart from Australia, Japan and Korea, which will be the major focus for the Kuala Lumpur-based long-haul LCC in the next few years. Azran did not disclose the potential new destinations but said the airline will look at 10 to 15 of them which have more than one million population. Azran revealed that online bookings for AirAsia X in China now make up 95% of total bookings from 50% in 2008. ' Business Times

Malaysia Building Society Bhd (MBSB) signed a four-year licensing agreement with Sedania Corp Sdn Bhd's unit IDOTTV, to use the latter's Islamic banking platform to promote its personal financing-i scheme. IDOTTV is the developer of the Islamic banking Tawarruq trading system As-Sidq, a system which uses telecommunication airtime as the commodity. MBSB retail business senior vice-president Azman Aziz said the group migrated from Bai Al-Inah to Tawarruq concept because it was encouraged by Bank Negara and it was most acceptable in the Middle East countries. He added that the As-Sidq transaction would increase their efficiency in corresponding with customers through the usage of short messaging system or SMS, which is the primary mode for the akad transaction. IDOTTV is one of the leading solution and content providers in the country and specialises in integrating mobile technology into each solution. - StarBiz

Source: AmeSecurities