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MAHB completes issuance of RM500 million senior Sukuk

06 September 2013

Sepang, 6 September 2013 - Malaysia Airports Holdings Berhad ("MAHB") has successfully completed its issuance of RM500.0 million Senior Sukuk via a dual tranche offering pursuant to its newly established Senior Sukuk Programme which together with its Perpetual Subordinated Sukuk Programme have a combined aggregate nominal value of up to RM2.5 billion (collectively known as the "Programmes"). The Senior Sukuk offering which is based on the Islamic principle of Musharakah, comprises a 3-year, RM250.0 million tranche and a 5-year, RM250.0 million tranche at a yield of 3.85% and 4.15% respectively.

The Senior Sukuk offering attracted an overwhelming response from investors with an order book exceeding RM1.7 billion, representing 3.4 times oversubscription from 27 accounts. A diverse group of investors have subscribed to the Senior Sukuk offering, comprising amongst others, government agencies, financial institutions, asset management companies, insurance companies and corporate accounts. The successful execution of the Senior Sukuk offering as evidenced by the positive demand from investors is a strong testimony of investors' confidence in MAHB's solid financial footing and globally recognised airport management capabilities.

The Senior Sukuk proceeds will be used to part finance the development of klia2 which is expected to be operational on 2 May 2014. The development of klia2 plays a pivotal role in MAHB's aspiration to transform KLIA into a Next Generation Hub, which will revolutionalise the air travel experience through a seamless connectivity between full service airlines and low cost carriers. The development costs of klia2 remains at RM4.0 billion, and being one of the largest privately funded projects in Malaysia, klia2 will continue to spur the local economic growth and employment opportunities.

The commercially driven klia2 has received overwhelming response on it's commercial offerings that well demonstrates the confidence that the commercial operators have in the potential growth and business viability at klia2. Amongst the exciting retail brands that will be operating at klia2 on opening day include Royal Selangor School of Hard Knocks, Machines, Michael Kors, Hugo Boss, Desigual, Victoria Secret, Furla, Dragon-i, The Loaf, Lindt Café and Starbuck Coffee. MAHB has to date raised RM3.1 billion from its inaugural sukuk programme established in 2010 for the purpose of financing klia2.

The Senior Sukuk and Perpetual Subordinated Sukuk Programmes have been assigned long-term ratings of AAA and AA2 respectively by RAM Rating Services Berhad. The Perpetual Subordinated Sukuk Programme represents the first rated Perpetual Subordinated Sukuk Programme in Malaysia which is in line with MAHB's commitment to support the Government's ongoing initiatives and efforts in positioning Malaysia as an international Islamic financial centre. The favourable ratings accorded to the Programmes reflect the strong fundamentals of MAHB and the strategic importance of MAHB's business operations to the Government of Malaysia in view of its role as the operator for the key gateways to the nation.

CIMB Investment Bank Berhad, Citibank Berhad, HSBC Amanah Malaysia Berhad, and Maybank Investment Bank Berhad are the Joint Lead Arrangers, Joint Lead Managers and Joint Bookrunners for the Programmes.

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