KUALA LUMPUR: Johor Corporation's (JCorp) sukuk wakalah has received overwhelming interest from fixed income investors following an oversubscription of close to five times.
JCorp said the strong investor demand led to an upsize of the issue size from the initial RM1.3 billion to RM1.5 billion with a price tightening of 15 basis points across the seven, 10 and 15-year sukuk offerings with profit rates of 4.45 per cent, 4.54 per cent and 4.80 per cent respectively.
"The issuance benefits from an unconditional and irrevocable guarantee by the state government of Johor for the full nominal amount of RM2 billion and any profits accrued therein," JVorp said today.
This signals the continued deep trust placed in JCorp by the state government, it added.
JCorp president and chief executive Datuk Syed Mohamed Syed Ibrahim said the issuance was a decisive step in its financial restructuring and pursuit of greater value creation.
"In line with our aspiration to future-proof JCorp, this is part of our commitment to capture advantageous opportunities, as we envision a JCorp that is resilient, agile and sustainably value-driven.
"This financial fortification provides us with the crucial arsenal necessary to bolster our businesses and secure our robust growth trajectory.
"We extend our deepest gratitude to the state government of Johor for their unwavering trust and endorsement of this undertaking.
"This not only exemplifies our unwavering commitment to delivering on our clear and definitive purpose of 'Membina & Membela', but also underlines our dedication to fostering the well-being and prosperity of the people and the state of Johor as a whole, reflective of our belief in a collective journey towards sustainable economic progress," he said.
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