RM845mil Sapken bond taken by single investor
An unnamed investor has taken up SapuraKencana Petroleum Bhd’s (SapKen) RM845.8 million (USD200 million) sukuk issuance, sources said.
SapKen’s sukuk issuance came in the midst of low oil prices, and the fact that the company has close to RM17 billion in debt.
The investor believes that Sapken will get through its current challenges and was attracted by the 4.85% yield stated in the seven-year sukuk.
“SapKen is the biggest Malaysian player in the industry as well as a global player. The investor believes SapKen is resilient enough to weather this period,” said the source.
“You must understand that an investor who takes up debt is different from an investor who takes up equity. The parameters of valuation are different.”
“For debt, it is more about the company’s credit rating. Besides, the yield of 4.85% is attractive,” he added.
Malaysian credit/RAM ratings gave the bond’s yield percent an AA3 rating, meaning SapKen is very likely to deliver the expected returns.
The RM845.8mil sukuk is part of SapKen’s RM7 billion multi-currency sukuk programme to fund its new USD2.3 billion facility that comes due next February.