High ratings for Sime sukuk

14/01/2013 07:34 AST

Sime Darby Bhd's US$1.5 billion (RM4.5 billion) multi-currency sukuk programme has been rated higher than Malaysia's sovereign rating by two of the world's top rating houses.

Standard & Poor's Ratings Services (S&P) and Fitch Ratings Ltd gave the sukuk an "A" rating each while Moody's Investor Service Inc gave it an "A3".

S&P and Fitch had given Malaysia's sovereign rating an "A-" each while Moody's rated it an "A3".

The sukuk programme, which just last week received the backing from the Securities Commission, is Asia's first internationally rated multi-currency sukuk programme by an Asian corporate under the syariah principle of Ijarah.

The ratings are a reflection of the conglomerate's position as one of the world's largest plantation players, its diversified business portfolio, size and scale, track record, and robust financial profile, said president and group chief executive Datuk Mohd Bakke Salleh.

"Sime Darby, as the leading multinational conglomerate in Malaysia, is proud to be the first Asian conglomerate to establish this inaugural multi-currency sukuk programme.

"This represents Sime Darby's continuous commitment in supporting the government's ongoing initiatives and efforts to position Malaysia as an international Islamic financial centre," he said in a statement.

The sukuk programme, he said, provides Sime Darby with the financial agility to meet its funding requirements as it expands its business portfolio globally.

In addition to being a multi-currency programme, the syariah-compliant structure will allow Sime Darby to tap a wider pool of investors be it conventional or Islamic from Asia, the Middle East and Europe.

Citigroup Global Markets Ltd, HSBC Amanah Malaysia Bhd and Maybank Investment Bank Bhd and Standard Chartered Bank are the joint lead arrangers.

Business Times