MARC has issued this update as part of its ongoing monitoring of the progress on expressway concessionaire Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd's (Kesturi) refinancing of its outstanding RM780 million Sukuk Istisna. MARC's last rating update on the Sukuk was issued on September 3, 2010 while MARC's A+ID rating on the Sukuk was affirmed on January 18, 2010 with a developing outlook.
On September 7, 2010, Kesturi had proposed a number of resolutions to existing sukukholders to facilitate the refinancing, including the extension of time to complete the buyback of outstanding Sukuk. The issuer had sought to extend the deadline for financial close of the Sukuk buyback to October 31, 2010, beyond the October 18, 2010 scheduled redemption of Tranche 1. The extension of the deadline is subject to the upcoming October 18, 2010 profit payment being met on due date and payment of all profit accruing from October 18, 2010 up to the deferred purchase date on financial close. All resolutions put to sukukholders in relation to the proposed buyback of outstanding Sukuk were approved at the sukukholder's extraordinary general meeting on September 30, 2010.
MARC does not believe that any rating action is warranted in relation to the slight delay in the refinancing of the Sukuk from earlier expectations given that nothing has changed from a credit perspective. MARC will withdraw its ratings and outlook on the Sukuk upon completion of the buyback exercise.
-Ends-
Contacts:
Sandeep Bhattacharya, 03-2090 2247/ sandeep@marc.com.my;
Khairul Emran Mahmud, 03-20902278/ emran@marc.com.my;
Ezien Hoo, 03-2090 2267/ ezien@marc.com.my.
© press Release 2010
Loading comments ...