Published: Monday January 14, 2013 MYT 8:41:00 AM
RHB Research positive on Sime Darby's US$1.5b Sukuk
It said on Monday the Sukuk programme would likely help to lower Sime's debt rate, which currently stands at 4%-5% per annum.
"We believe the sukuk would be used to fund its capex (the main bulk of which would likely be for its planting programme in Liberia) as well as to refinance some of its other debt," it said.
On Friday, Sime Darby Bhd announced it received the Securities Commission's nod for the Sukuk.
The sukuk has been rated higher than Malaysia's sovereign rating by S&P, Fitch and Moody's. S&P and Fitch gave the sukuk an "A" rating, while Moody's gave it an "A3".
The sukuk programme is Asia's first internationally rated multi-currency sukuk programme by an Asian corporate under the syariah principle of Ijarah.