Unrated Sukuk Issued via Private Placement

SapuraKencana Petroleum, Malaysia’s leading oil and gas company, announced it had issued $200 million worth of sukuk on Tuesday to refinance some of its debt. The issuance, the first tranche of a multicurrency, medium-term notes program, is being offered through wholly owned subsidiary SapuraKencana TMC. The deal was priced at 4.85% with a seven year maturity and marked a rate foreign currency sukuk issued in Malaysia.

Maybank Investment Bank, the corporate banking arm of Malaysia’s biggest lender, Malayan Banking, is the lead manager of the issuance. SapuraKencana’s debt totaled 17 billion ringgit ($4 billion) as of the end of April, with more than 80% denominated in dollars.