Sunday 6 December 2015

Tabung Haji To Gain RM579.2m From Bandar Malaysia Sukuk

Lembaga Tabung Haji (LTH) is expected to gain RM579.2 million from its RM920.8 million investment in 1Malaysia Development Bhd’s (1MDB) Bandar Malaysia sukuk issuance in February 2014, said Prime Minister Datuk Seri Mohd Najib Razak.
“To date, the fund had received RM7.85 million in returns according to schedule without any delay,” Najib, who is also the finance minister, said in a written reply in Parliament yesterday.
He was answering queries from Kota Tinggi MP Datuk Noor Ehsanuddin Mohd Harun Narrashid who wanted details on Tabung Haji’s investment in the Bandar Malaysia sukuk.
“The pilgrims’ fund invested in the Bandar Malaysia sukuk in two tranches and is expected to gain returns of 5.85% and 6.05% per annum for the period of seven and 10 years respectively,” said the premier.
1MDB sold RM2.4 billion worth of Islamic bonds to finance the construction of replacement facilities for the existing Sungai Besi Air Force Base to pave way for the proposed Bandar Malaysia development.
AmInvestment Bank Bhd had advised on the sale of the sukuk and was not rated by credit-rating firms.
LTH defended the investment as it was secured against parcels of land in Bandar Malaysia with security cover of at least 1.67 times.
Meanwhile, Najib said from January-September this year, the government has used RM18.6 billion for coupon payments to bond and sukuk holders.
Of the total, some RM400 million was paid for local issuance of bonds and sukuk while the balance was paid for offshore issuance.
Throughout last year, some RM22.6 billion was paid as coupon payments for bonds and sukuk, of which RM22.1 million was paid for local issuance, said Najib.

In May, LTH said at the end of the investment in Bandar Malaysia, it will receive a total proceeds of RM1.55 billion, resulting in a RM626.5 million profit.

(The Malaysian Reserve / 02 December 2015)
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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

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