Tabung Haji took up RM920.8m of Bandar Malaysia sukuk


(The Sun Daily) – Lembaga Tabung Haji (TH) yesterday said it had taken up RM920.8 million of the Bandar Malaysia sukuk privately placed out in February this year.

1Malaysia Development Bhd (1MDB) sold RM2.4 billion worth of Islamic bonds inance the construction of replacement facilities in relation to the relocation of the existing Sg Besi Air Force Base Facilities from land marked for government development project Bandar Malaysia.

AmInvestment Bank Bhd advised on the sale of the sukuk, which Reuters had reported in February was not be rated by credit-rating firms.

According to a statement released by the pilgrims fund, it had invested in the Bandar Malaysia Sukuk issuance in February 2014, as it was secured against parcels of land in Bandar Malaysia with security cover of at least 1.67 times, its chief investment officer Abd Kadir Sahlan said.

TH’s total investment, in two tranches on the said Sukuk, is RM920.8 million, and will generate yields of 5.85% and 6.05% 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.