Labuan International Financial Exchange (LFX) today listed a USD350 million 20-year guaranteed Fixed Rate Amortising Notes (Guaranteed Notes) due 2026. The Guaranteed Notes issued by Sarawak Capital Incorporated (SCI), a wholly owned subsidiary of Sarawak Capital Assets Sdn Bhd (SCA)bears an interest rate of 5.925 per cent per annum.
This is the third debt instrument issued by the State Government of Sarawak listed on LFX. Prior to this was the USD350 Million Trust Certificates due 2009 under the Sukuk Al-Ijara principle which was listed in January 2005, and the second was the USD800 Million, 5.5 Per Cent Guaranteed Notes due 2015 which was listed in August in the same year.
“The listing of the Guaranteed Notes on LFX proves the state’s confidence towards the benefit that will be derived from the exchange for its economic development. We encourage other states to also participate alongside other domestic and sovereign issuers to reap the benefits and opportunities that LFX can offer”, commented Dato’ Yusli Mohamed Yusoff, Chairman of LFX Board and CEO of Bursa Malaysia Berhad.
SCA guarantees the payment of all payable by SCI in respect of the Guaranteed Notes. The interest and principal payment of the Guaranteed Notes payable by SCA will be supported by the State Government of Sarawak.
In addition to the support provided to the Issuer by SCA and the State Government of Sarawak, the Guaranteed Notes have the benefit of a guarantee on scheduled payments of principal and interest by MBIA UK Insurance Limited.
Financial instruments listed on LFX include conventional debt securities, exchangeable bonds, Islamic debt securities and open-ended funds. LFX is a one-stop offshore exchange that provides full services of approval, listing, trading and settlement of securities and financial instruments. LFX has 39 instruments listed on the exchange and a total market capitalization of USD14.8 billion.
The listing sponsor for the Guaranteed Notes is AmInternational (L) Limited. The Joint Lead Managers to the issue are Goldman Sachs (Singapore) Pte. and AmMerchant Bank Berhad Labuan Offshore Branch. Goldman Sachs (Singapore) Pte.is the sole bookrunner for the issue.
