PLNG2 issues RM1.7 billion Sukuk, oversubscribed by 3 times

  • Feb 24, 2021
  • Petronas Gas

Kuala Lumpur, 21 October 2020 – Pengerang LNG (Two) Sdn. Bhd. (PLNG2), a 65% owned subsidiary of PETRONAS Gas Bhd (PGB), has successfully concluded the issuance of a 20-year multi-tranche Sukuk Murabahah amounting to RM1.7 billion under its Islamic Medium Term Note Programme.

The oversubscription of just over three times reflects the market's confidence in the company's credit strength which has been assigned a rating of AAA by the Malaysian Rating Corporation Berhad.

"We are pleased with the overwhelming response and demand from the investors, underpinned by our robust and sustainable business model despite the current global challenges," said PGB Managing Director and Chief Executive Officer, Kamal Bahrin Ahmad.

The issuance is in line with continued efforts in driving efficient capital management across PGB Group, added Kamal Bahrin, who is also the Chairman of PLNG2.

The proceeds will be utilised by PLNG2 for Shariah-compliant purposes, primarily to repay its outstanding USD shareholders' loans in full, hence there will be no change in PGB Group's consolidated borrowings.

The RM1.7 billion Sukuk Murabahah issuance will not have any effect on the issued and paid-up capital of PGB and/or the substantial shareholders' shareholding in PGB, nor that it will have any effect on the issued and paid-up share capital of PGB and/or the substantial shareholders' shareholding in PGB.

Based on PGB's consolidated statement of financial position as at 30 June 2020, there will be no material change in PGB Group's consolidated gearing. In addition, the issuance will not have a material impact on the earnings, earnings per share and net assets per share of PGB Group for the current financial year.

PLNG2 operates the Liquefied Natural Gas (LNG) Regasification Terminal Pengerang (RGTP) in Johor, and PGB's second regasification facility after RGT Sungai Udang located in Melaka. PLNG2's other shareholders include Dialog LNG Sdn Bhd (25%) and Permodalan Darul Ta'zim Sdn Bhd (10%).

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