Bangkok--17 Nov--PTT
Trans Thai-Malaysia (Thailand) Limited, a subsidiary under PTT Group, raised funds in the Malaysian Market through its Malaysian-based special purpose subsidiary TTM Sukuk Berhad with the issuance of MYR 600 million serial Sukuk with tenors ranging from 5 to 15 years which was structured under the Shariah principle of Murabahah utilizing commodities.
Mr. Prasert Bunsumpun, Chief Executive Officer and President of PTT Public Company Limited, said “This is indeed a significant landmark transaction for the PTT Group as it represents the first Thai issuer in Islamic capital markets. The Sukuk offering by TTM Sukuk Berhad is indeed a ground-breaking transaction for us as it is our first Islamic capital market transaction for a company under the PTT Group. We hope this benchmark Sukuk transaction will act as a catalyst for more Islamic financing by Thai issuers in Thailand and abroad.”
The Sukuk was awarded the highest rating of AAA by Malaysian Rating Corporation Berhad. The proceeds of the Sukuk will be used to refinance USD shareholder loans extended to construct the gas pipeline system that had recently commenced operations in June this year. At the weighted average cost of below 4% p.a. (after converting into USD), the Sukuk represents a very attractive effective funding cost given the long - term limited recourse nature of the transaction.
TTM Thailand is an equally owned project company between PTT Public Company Limited (“PTT”) and Petroliam Nasional Berhad (“PETRONAS”) and was established to own and operate the natural gas pipeline system that transports natural gas from the Joint Development Area between Malaysia and Thailand (“JDA”) to each of the respective countries.
Mr. Manop Ratanasupanusorn, President and CEO of TTM Thailand, said “The Thai-Malaysia Gas Transmission Pipeline Project was originated from the cooperation between the governments of the two countries since 1978 in order to develop the Thai-Malaysia Joint Development Area (JDA) which is strategically important toward the economic growth of both countries. The success of this Islamic Bond Issuance was due to the strong shareholders, PTT and Petronas, as well as the source of repayment funds will come from PTT, the sole customer of the project.”
CIMB and HSBC are the joint lead arrangers and managers for this Sukuk offering.
Tel: 0-2537-2159 Fax: 0-2537-2171
PTT Corporate Communications Dept.