Published on 12 Mar 2020.
RAM Ratings has reaffirmed the AAA/Stable rating of CJ Capital Sdn Bhd’s (the Company) RM114 mil Sukuk Murabahah (2010/2020) (the Sukuk). The rating is premised on the Company’s ability to consistently meet its financial obligations, underpinned by timely and uninterrupted annuity payments from the Johor State Government (the State) – a strong counterparty.
Following the receipt of the last annuity payment a month ahead of schedule in January 2019, the outstanding financial dues on the Sukuk are now fully funded. The Company’s RM23.66 mil of cash balances as at end-December 2019 can amply cover the Sukuk’s final principal and profit payments of RM15.83 mil due on 15 July 2020.
Wholly owned by Cahaya Jauhar Sdn Bhd, CJ Capital had been set up as a funding conduit to raise the Sukuk. Cahaya Jauhar, a 60:40 JV between UEM Land Berhad and the State (via Permodalan Darul Ta’zim Sdn Bhd), had been awarded the contract for the development and maintenance of Kota Iskandar, i.e. Johor’s new administrative centre in Iskandar Puteri. In return for the construction of Kota Iskandar, including the execution of variation orders for its first phase, Cahaya Jauhar is entitled to receive RM15 mil of annuity payments from State Secretary Johore (Incorporated) for 10 years until February 2019.
Davinder Kaur Gill
(603) 3385 2525
(603) 3385 2577
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Ratings on CJ Capital Sdn Bhd