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MAHB’S PERPETUAL SUBORDINATED SUKUK AWARDED MAIDEN EUROMONEY AWARD FOR INNOVATION IN ISLAMIC FINANCE 2015

27 May 2015

SEPANG - Malaysia Airports Holdings Berhad (MAHB or the Company) is pleased to announce that its inaugural RM1 billion Perpetual Subordinated Sukuk (Perpetual Subordinated Sukuk) was recently awarded the maiden Euromoney Award for Innovation in Islamic Finance 2015. This landmark transaction marks the first ever rating agency equity content-targeted hybrid perpetual sukuk transaction in the world and the largest ever perpetual sukuk issuance by a corporate in the Malaysian capital markets to-date. The Perpetual Subordinated Sukuk was structured to achieve 50% equity credit from the rating agencies (Moody’s and RAM) as well as 100% equity accounting treatment under prevailing Malaysian accounting standards. The Perpetual Subordinated Sukuk issuance was initiated as part of MAHB’s proactive capital management and alternative fund raising strategy.

The Euromoney Award acknowledges breakthroughs and ground-breaking revolution in Islamic Finance and further solidifies Malaysia’s position as a vibrant and leading international Islamic finance hub. This transaction in turn, paves the way for more issuances from corporates under such structures in the future. MAHB is proud to support and participate in the Government of Malaysia’s initiative to be the leading centre of excellence for Islamic finance and Asian currency bond offerings.

With this honour, MAHB became the first Asian ex-Middle East corporate to win an award from Euromoney in 2015.

Datuk Badlisham Ghazali, Managing Director of MAHB said, “We’re very pleased to receive this award as it is testament of our business and capital management commitment to enhance shareholder value and improve our client proposition.”

This milestone transaction was structured under the principle of Musharakah or partnership contract, completed in December 2014, and oversubscribed by approximately 5.0 times which underscores investors’ confidence in the Company’s strong fundamental credit, the underlying transaction structure and the Lead Managers’ vigorous investor education effort. The transaction was lead managed by CIMB Investment Bank Berhad, Citibank Berhad, HSBC Amanah Malaysia Berhad and Maybank Investment Bank Berhad. The Perpetual Subordinated Sukuk is rated AA2 by RAM Rating Services Berhad, the highest possible issue ratings that can be achieved for perpetual securities with such similar features (i.e. subordinated and with payment deferral options).


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