The issue is a series of trust certificates (Certificates) comprising USD350 million floating rate with a maturity of five (5) years. The Certificates is the sixth Syariah compliant Islamic financial instrument which now brings the total number of listings on LFX to 26, with a combined market capitalisation of USD10.43 billion (RM39.63 billion).
Yusli Mohamed Yusoff, Chairman of LFX Board and CEO of Bursa Malaysia Berhad, said that the listing of the Islamic Sukuk Al-Ijarah instrument marks an aggressive start for LFX in the new year and reflects LFX's commitment and effort towards positioning itself as a premier offshore exchange for the listing of both Islamic and conventional financial instruments.
"The listing augurs well for the growth of LFX and the Labuan International Offshore Financial Centre (Labuan IOFC). It is hoped that in 2005 more Malaysian corporations would list their financial instruments on LFX in support of the Exchange and as a testimony of confidence in the development of the LFX as an offshore exchange that complements the development of the Malaysian capital market. With a strong home-based of listings, LFX would then pursue to attract international corporations to list its financial instruments on LFX,” Yusli said.
SCSI, is a special purpose company incorporated in Labuan IOFC under the Offshore Companies Act 1990, whose ownership is held by an independent shares trustee on trust for certain charities. Sarawak Economic Development Corporation (SEDC), a state-owned statutory body promoting and developing commercial, industrial and socio-economic development of the state of Sarawak, as lessee is obligated to make regular lease payments to SCSI; the latter in turn making sukuk payments to the certificate holders of the sukuk.
The proceeds of the issue of the Certificates will be used by SCSI to purchase assets, comprising certain machinery and equipment, from 1st Silicon (Malaysia) Sdn. Bhd. (1st Silicon), a subsidiary of SEDC. 1st Silicon will in turn use the proceeds to repay existing term loan facility, use the remaining proceeds towards payment of a deposit to SEDC to sub-lease certain machinery and equipment from SEDC and for general corporate funding purposes.
The Certificates have been rated A- by Standard & Poor’s and Baa3 by Moody’s.
The listing sponsor for the issue is AmInternational (Labuan) Limited. Licensed by the LFX, a listing sponsor is primarily responsible to arrange for the listing of instruments on the LFX and for any subsequent post listing obligations arising.
