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RAM Ratings assigns final AAA(s)/Stable rating to sukuk by Sarawak’s SPV, Infracap Resources

Published on 13 Apr 2021.

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RAM Ratings has assigned a final AAA(s)/Stable rating to Infracap Resources Sdn Bhd’s (Infracap) RM15 bil Sukuk Murabahah Programme (2021/2041). In doing so, we have reviewed the relevant final transaction documents and the repayment schedule. These are in line with our expectations, similar to when the preliminary rating had been assigned (and subsequently published on 27 January 2021). 

Infracap is a funding vehicle of the Sarawak state government (the State) through wholly owned subsidiary, Infracap Development Holdings Sdn Bhd. Based on the entity set-up, transaction structure and representations by the State Financial Secretary, the servicing and repayment of the Sukuk will emanate from the State, with monies to be regularly set aside from its annual budget for this purpose. The proceeds from the Sukuk will be used to fund 11 specific development projects throughout Sarawak, which may generate a multiplier effect over the longer term to support the State’s future revenues. 

The State has a few outstanding bonds, namely the Sukuk Murabahah Programme under Aquasar Capital Sdn Bhd (currently rated AAA(s)/Stable by RAM) maturing in 2029 and three USD-denominated bonds maturing in 2022 and 2026.

 

Analytical contact
Lynette Lee
(603) 3385 2621
lynette@ram.com.my

Media contact
Padthma Subbiah
(603) 3385 2577
padthma@ram.com.my

 

The credit rating is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.

RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.

Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.

Published by RAM Rating Services Berhad
© Copyright 2021 by RAM Rating Services Berhad



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