DanaInfra to seek up to 50b ringgit in Islamic financing
[KUALA LUMPUR] DanaInfra Nasional Bhd, a company created by Malaysia's finance ministry to raise funds for the country's most extensive infrastructure project, said it would seek Islamic financing of up to 50 billion ringgit (US$11.7 billion).
Islamic finance has been traditionally confined to mid-sized transactions, but over the past year Malaysia has moved to issue longer-dated Islamic bonds to help set pricing benchmarks for large-scale infrastructure deals.
DanaInfra said it would use the funds to complete an existing line of the capital city's Mass Rapid Transit (MRT) rail network, for which it has already raised 17.6 billion ringgit.
It will also raise funds for a new MRT line which has an estimated cost of 42 billion ringgit and is to be completed by 2022, the company said in a statement.
The funds would be raised in the form of Islamic commercial papers or Islamic medium-term notes and be fully guaranteed by the government, the company said.
AmInvestment Bank Bhd, CIMB Investment Bank Bhd, Maybank Investment Bank Bhd and RHB Investment Bank Bhd are the joint lead arrangers and joint lead managers for the programme.
In addition, Affin Hwang Investment Bank Bhd, Hong Leong Islamic Bank Bhd and HSBC Bank Bhd are joint lead managers.
REUTERS
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