Published on 19 Sep 2019.
RAM Ratings has assigned a final AA3/Stable rating to the RM52 mil Tranche 1 IMTN under Trinity Asia Ventures Berhad’s (Trinity Asia or the Issuer) RM1.5 bil Sukuk Musharakah Programme (the Programme). As per the terms of the Programme, the transaction’s sponsor – Trinity Group Sdn Bhd (Trinity Group) – or its developer subsidiaries will, from time to time, sell to Trinity Asia their beneficial right to payments under the respective sale and purchase agreements (SPAs) signed with buyers related to specific property development projects. Trinity Asia is a subsidiary and special-purpose funding vehicle of Trinity Group. Future receipts under the SPAs will be used to fund remaining construction costs of the identified development projects as well as to meet the Issuer’s fees, expenses and obligations under each IMTN tranche. Concurrently, Trinity Asia will also set up an unrated RM1 bil Sukuk Murabahah ICP Programme (ICP Programme) that will act as a contingent line for the transaction. For Tranche 1 IMTN, the corresponding ICP will have a facility limit of RM30 mil. Trinity Asia is a subsidiary and special-purpose vehicle of Trinity Group.
Having reviewed the transaction documents for the IMTN Programme and the ICP Programme, we are satisfied that they reflect the intended transaction structure represented during the preliminary rating exercise. The final rating is also reflective of the latest construction progress, project cashflow and sales progress as at end-July 2019. We have further taken into consideration the independent project certifier’s (IPC) view on the development projects based on the latest construction progress report, as well as the relevant legal and tax opinions. Overall, we find these to be in order and largely in line with our earlier assessment of the Tranche 1 IMTN announced on 24 June 2019. Please refer to our final rating rationale for further details on the assigned rating.
Upon closing, RAM will maintain surveillance of the transaction via monthly construction progress reports, project account statements, trustee reports and quarterly IPC reports to track the actual time and cost to completion against the developer’s targets. We expect to make an announcement on the progress of the projects semi-annually or as and when required.
Tan Han Nee
(603) 3385 2529
(603) 3385 2577
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Published by RAM Rating Services Berhad
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Ratings on Trinity Asia Ventures Bhd