Bandar Malaysia sukuk a secured investment, says TH
Azyyati Ahmad
May 11, 2015 22:02 MYT
May 11, 2015 22:02 MYT
TH's total investment, in two tranches on the said Sukuk, is RM920.8 million, and will generate yields of 5.85 per cent and 6.05 per cent for the seven- and 10-year tranches, respectively. - File Photo
Lembaga Tabung Haji (TH) today clarified that it invested in the Bandar Malaysia Sukuk Issuance in February 2014, as it is a secured investment.
The Sukuk is effectively secured against parcels of land in Bandar Malaysia with security cover of at least 1.67 times, said its Chief Investment Officer Abd Kadir Sahlan in a statement today.
Abd Kadir said the sukuk was issued to finance the construction of replacement facilities in relation to the relocation of the existing Sg Besi Air Force Base Facilities.
TH's total investment, in two tranches on the said Sukuk, is RM920.8 million, and will generate yields of 5.85 per cent and 6.05 per cent for the seven- and 10-year tranches, respectively.
At the end of the investment periods, TH will receive total proceeds of RM1.55 billion resulting in a RM626.5 million profit, said Abd Kadir.