Published on 16 Jun 2022.
Quill Retail Malls Sdn Bhd (QRMSB) expects to fully redeem the outstanding sum under its RM350 million Sukuk Murabahah on 30 June 2022 via issuance proceeds from two unrated guaranteed medium term notes (MTN) facilities. QRMSB exercised the call option under the Sukuk Murabahah on 11 April 2022.
Sukukholders had previously approved (i) a proposed extension of time (EOT) from 6 May 2022 to 30 June 2022 to allow QRMSB to satisfy the purchase consideration under the call option; and (ii) a waiver of the requirement of a bank guarantee (BG) facility and all other terms related to it during the EOT period. The BG was intended to meet any shortfall in profit payment obligations or Reserve Account requirements throughout the tenure of the Sukuk Murabahah.
Based on the management’s latest progress update on 7 June 2022, all necessary conditions precedent of the guaranteed MTN facilities have been met and is on schedule to enable issuance by 30 June 2022.
RAM Ratings understands that the financial guarantee insurance policies for the unrated MTN facilities are expected to be issued by 17 June, after which the MTN issue request will be submitted on the same date for issuance within eight business days.
We will continue to monitor the progress of the refinancing exercise and expect to withdraw the issue ratings upon full redemption of the sukuk.
L Nurisya Abdullah
(603) 3385 2492
Lim Chern Yit
(603) 3385 2528
The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch 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 2022 by RAM Rating Services Berhad
Ratings on Quill Retail Malls Sdn Bhd