Embed Size (px)
Citation preview
November 25, 2015
Page 0
INFRASTRUCTURE DEBT SECURITIES The Case of Sukuk in Malaysia
Zainul Hashim Head, Senior Vice President Debt Markets AmInvestment Bank Berhad 25 November 2015
Mohd Hedzir Hanafi Head, Senior Vice President Capital & Project Advisory AmInvestment Bank Berhad
November 25, 2015
Page 1 Infrastructure Debt Securities: The Case of Sukuk in Malaysia
► PART I
Introduction
Malaysia’s Experience in Infrastructure Financing
Typical Financing Plan and Strategy
Presentation Outline
► PART II
Rating Considerations and Credit Enhancement
Case Studies
Why AmInvestment Bank?
November 25, 2015
Page 2
Introduction
November 25, 2015
Page 3 Evolution PPP in Malaysia
1983 Malaysia
Incorporated Policy Privatisation Policy
1985 Privatisation Guidelines
1991 Privatisation Masterplan
2006 PPP Introduced
2009 PPP Unit Formed
PPP Guideline Introduced
2010 Facilitation Fund
Introduced
Various PPP Models adopted:
Build-Operate-Transfer Build-Operate-Own Build-Lease-Maintain-
Transfer Build-Lease-Maintain-
Operate- Transfer Management / Operation
outsourcing Leasing and land swap Sales of public asset /
equity
Current Emphasis: Highways Education Health
Government administrative building
RM20 billion Facilitation Fund established as
tipping point to encourage private investment
Private Funding Equity
Bank borrowing / loans Private debt securities /
Sukuk Typical debt-to-equity ratio
of 80% - 90% to 10% - 20%
Public / Government Funding
Government soft loan Government subsidy Government grants (for
land acquisition)
Source: Asia Executive Programs workshop
November 25, 2015
Page 4 Evolution PPP in Malaysia (cont’d) PFI - first mentioned in the Ninth Malaysia Plan in March 2006 as an alternative procurement method for the Government. Aim - to facilitate greater participation of the Private Sector to improve the delivery of infrastructure facilities and public
services. 2009 - Privatisation and Private Finance Initiative (PFI) Unit was established under the Prime Minister's Department. Currently known as Unit Kerjasama Awam Swasta (“UKAS”). Structure of PPP Project Typical PPP Business Models
Build-Lease-Maintain-Transfer
Build-Lease-Maintain-Operate-Transfer
Build-Own-Transfer
Build-Operate-Own
PPP Business Models
Special purpose vehicle created specifically for the project
Financiers
Construction contractor
Facilities management operator
Public sector (procuring authority)
Main parties in PPP Project
Legislate and strategize a PPP policy that is suitable to the country’s economic situation and time
Study and endorse the PPP proposals for the approval of the Cabinet
Plan, administer, control and evaluate the implementation of the National PPP programmes Manage the PPP’s Facilitation Fund
UKAS’ main responsibilities
Structuring a PPP project involves bringing together relevant private sector parties with clearly defined tasks and risks of the project. The main parties would include:
The typical PPP Business Models are as follows:
Source: UKAS PPP Guidelines, Asia Executive Programs workshop
November 25, 2015
Page 5
Malaysia’s Experience in Infrastructure Financing
November 25, 2015
Page 6 Malaysian Debt Capital Market
Private Debt Securities / Sukuk Issuance Amount Source: Bloomberg (13 Nov 2015)
AIBB’s Portion (%) 13.2 18.8 18.9 13.8 16.8 16.2 15.2 18.3 YTD issuance of PDS / Sukuk is 37.5% down from last year in the first few months of the year, with total PDS / Sukuk
issuance being recorded at MYR45.9 billion (2014: MYR79.2 billion). However, the market is expected to close with MYR70 to 80 billion by the year end.
New issues improved across these sectors: finance (MYR24 billion, 48.1%), real estate (MYR2 billion, 4.8%) and business services (MYR300 million, 0.6%) sector, which has remained the chief driver of PDS / Sukuk issuance.
49.5 44.6 47.4 44.9
67.0
117.8
68.6 79.2
November 25, 2015
Page 7 Malaysian Debt Capital Market (cont’d)
Expect gross issuance of government debt to decline over the next 3 years, with importance of GII to gradually rise beyond an alternative to MGS.
Total issuance of government debt is estimated at MYR93.6 billion in 2015, MYR90.6 billion in 2016, MYR90.5 billion in 2017 and MYR88.9 billion in 2018.
Foreign holdings of MGS retraced 2.3% m-o-m to MYR153.8 billion, bringing down the proportion of foreign-held MGS over total outstanding MGS by 0.4% to 45.6% as at end-September 2016.
Supply Profile of Government Bonds / Sukuk in 4Q15 Source: Bloomberg / BNM
Projected 2016 Projected 2016 – 2018
Issuance Redemption Net % of Total Issuance
MGS 45.4 (26.7) 18.7 47 – 52%
GII 44.4 (22.0) 22.4 49 – 52%
Others 0.8 - 0.8
Total Issuance 90.6 (48.7) 41.9
November 25, 2015
Page 8 Infrastructure Funding via Malaysia Bond Market
Sector %
Power/Electricity 3.0
Toll Roads 3.1
Water 4.4
Others 0.6
Note: * Exchange rate 1USD = RM4.3160 as at 24 November 2015 (Source: Bank Negara Malaysia’s website)
Approximately 11% or RM5.5 billion (or USD1.3 billion equivalent*) of YTD issuance of PDS / Sukuk, and current outstanding corporate bonds in 2015 comprise infrastructure project bonds:
Source : Bloomberg, AmBank Research and internal sources, Nov 2015
November 25, 2015
Page 9 Summary of Malaysian Budget 2016
► Budget deficit cut to -3.1% of GDP in 2016 Low growth in revenue (fall in crude oil price despite
implementation of GST, increased higher personal income tax for higher income personnel)
Oil-related revenue to fall further (drop in Petronas dividend to the Government, lower petroleum income tax/export duties)
► Measures for the Low and Middle income groups Increased BR1M handouts, minimum wage hike,
higher civil servant payments, expanded list of zero-rated GST items, provision of affordable housing
► Major public infrastructure and investment projects to continue MRT1, MRT2, RAPID, Pan-Borneo Highway, DASH,
SUKE & RAPID
► Allocations and incentives to spur investment activities and SMEs in targeted sectors Tax and funding incentives, Special Reinvestment
Allowance, tax incentives
► Real GDP growth for 2016 forecasted lower at 4.0% - 5.0%
Key Themes of the Federal Government’s Budget 2016
1.5
2.0
2.5
3.0
3.5
4.0
0%
20%
40%
60%
Oct
-08
Oct
-09
Oct
-10
Oct
-11
Oct
-12
Oct
-13
Oct
-14
Oct
-15
As at 9 November 2015
Gov. Debt to GDP 54.2%
Foreign Holdings of MGS 46.0%
Overnight Policy Rate 3.25%
Consumer Price Index 2.6%
Real GDP (YoY) 4.9%
Gov. Debt to GDP
Overnight Policy Rate
Foreign Holdings of MGS
Balanced Agenda with Prudent Targets Source: AmResearch
November 25, 2015
Page 10 Summary of Malaysian Budget 2016 (cont’d)
Balanced Agenda with Prudent Targets Source: AmResearch
► Development Expenditure Allocated MYR50b 5.4% higher than the MYR47.4b estimated for the
year
Non-financial public corporations to drive bigger public sector investment agenda, led by Khazanah with commitment of investments worth: MYR6.7b in 9 domestic projects in health,
education, tourism, software and communication infrastructure
MYR500m for venture capital and private equity funds that include a tourism capital venture fund amounting to MYR50m
November 25, 2015
Page 11 Global Sukuk Outlook
► Malaysia Continues Leading Global Sukuk Issuances and Outstanding As at YTD October 2015, the total global sukuk
issuance is USD28.7 billion, lower by 24.5% from the same period last year of USD38.1 billion.
Malaysia remains the largest sukuk issuer as at YTD Oct 2015, accounting for a sizeable USD12.0 billion or 41.8% of total global sukuk issuances. United Arab Emirates came in second, with a market share of 18.3% of global sukuk issuances. Other issuing nations include Saudi Arabia (16.0%) and Indonesia (9.0%).
► Beyond Sovereigns Non-traditional Muslim countries’ increasing traction
in sukuk issuance is underpinned by debut issues from the United Kingdom, Hong Kong, Senegal and South Africa in 2014.
Hong Kong’s second sukuk issue in May 2015 (following its first in September 2014) highlights the sukuk market’s attractiveness in offering an alternative funding platform to diversify its investor base as well as to seek competitive pricing.
While there were more sovereign issuers in 2014, issuance by quasi sovereigns has been gradually increasing. The better diversity in issuers bodes well vis-à-vis confirming the acceptance of sukuk as a viable financing option by the larger community, instead of only as a liquidity tool for central banks.
According to Standard & Poors, Islamic finance growth is expected to be between 10%-15% growth on average as low commodity prices shall have its effects on the economic growth for some of the core markets in Islamic finance.
Market Share of Global Sukuk Issuances (2006 - Oct 2015)
40%51%
53%
67%
61%
56% 39%
43%
20142013201220112010200920082007
Source: Bloomberg
UAE18%
Malaysia42%
Saudi Arabia16%
Others24%
Market Share of
Global SukukIssuance(Oct-15)
November 25, 2015
Page 12
Typical Sectors suitable for Project Bonds
Toll Roads / Bridges Power Water
Sea Ports Telecommunications Infrastructure Waste Management
Teachers Quarters
Police Quarters
Government Buildings
Public Private Partnership (“PPP”) Oil & Gas
Hospitals
Types of projects funded by the bond markets
November 25, 2015
Page 13 An Enabling Environment
► Track record not required to issue bonds No listing requirement SPV structure is therefore possible Cash flow can be ring-fenced effectively to service
debt Project sponsors are able to have access to financing
with no/limited recourse
Highly leveraged financing is available
► Natural demand from a pool of long term investors Compulsory contribution to the Employee Provident
Funds created a need to invest in bonds that provide long term stable return
Insurance companies are allowed to invest in corporate bonds to meet their return requirement
► Ability to do bought deal Provides avenue to project sponsor to lock in funding
cost without taking too much market risks
► Liquid benchmark bonds provided the anchor to price long dated project bonds MGS goes up to long tenors Principal Dealership system create active trading in
benchmark bonds
► Trustee system provided a platform to monitor security and financial covenants Bond trustees are charged with the duty to monitor
the compliance of financial covenants from the periodical reports submitted by the issuers. Security trustees are appointed to ensure security covenants are complied with
November 25, 2015
Page 14
Rating Considerations and Credit Enhancement
November 25, 2015
Page 15 Project Financing Rating Considerations
Relates to construction risks – complexity and construction schedule, contract type, contractor profile
Encompasses demand risk, O&M risk, regulatory risk, off-taker credit strength, single project risk, financial risk.
Completion Risk Performance Risk
Demand Risk
Dependent on the terms of the off-take contract.
O&M Risk
Contracted operational and maintenance conditions.
Regulatory Risk
Changes to government policies.
Single Project Risk
Force majeure events or major operational failure.
Off-taker Credit Strength
Credit rating of off-taker acts as overall rating cap.
Construction Risk
Contract Type Turnkey or unit price contract.
Generally more favourable view on turnkey contract – most of the construction risk is borne by the EPC contractor.
Complexity of Construction Dependent on design complexity and technical
specifications of the project.
Rating agencies have negative views on aggressive construction schedule.
Contractor Profile Credit rating for the project would depend on track record
of the contractor.
November 25, 2015
Page 16 Project Financing Rating Considerations (cont’d) Credit rating agencies place great emphasis on debt/finance service coverage ratios (“FSCR”) particularly for project finance
transactions.
FSCR is calculated as the ratio of annual pre-financing cash flow to the sum of annual principal and interest payment obligations.
The general FSCR benchmarks for relevant infrastructure projects are outlined below:
Rating Category / Sectors DSCR / FSCR (with cash balances, post-distribution)
Toll Road IPP PFI
AAA 2.80 times 2.00 times 2.00 times – 2.15 times
AA1 2.50 times 1.80 times 1.80 times – 1.95 times
AA2 2.25 times 1.65 times 1.65 times – 1.80 times
AA3 2.00 times 1.50 times 1.50 times – 1.65 times
Other criteria that are considered include financing structure and covenants security coverage and liquidity features such as debt service or maintenance service accounts.
November 25, 2015
Page 17 Credit Enhancement
Completion Risk Performance Risk
Completion Guarantee from Sponsors ► Cost overruns (up to a certain limit).
► Principal and interest payments under the financing pre-completion.
► Konsortium ProHAWK Sdn Bhd (AA2)
Cost-Overrun Liquidity Facility (“COLF”) ► Procured from highly rated banks.
► Buffer against any cost overruns and shortfalls in net operating cash flows.
► Jimah Energy Ventures Sdn Bhd (AA3)
External Guarantee ► Procured from external guarantors (for e.g. Danajamin
& banks) on financing obligations.
► Guarantee valid for construction period only.
► Sasaran Etika Sdn Bhd (AA1)
Corporate Guarantee from Sponsors ► CG on the principal and interest obligations for the
entire tenor of the financing.
► Rating to mirror project sponsor’s corporate rating.
► Manjung Island Energy Berhad (Series 2 only) (AAA)
Rolling Guarantee from Sponsors ► Rolling guarantee on the next principal and interest
payment only.
► Valid for entire financing tenor.
► TNB Northern Energy Berhad (AAA) & TNB Western Energy Berhad (AAA)
External Guarantee ► Procured from external guarantors (for e.g.
Danajamin & banks) on financing obligations.
► Valid for entire financing tenor.
► Rating will mirror that of the guarantor.
► Incurs guarantee fee.
► West Coast Expressway (AAA)
November 25, 2015
Page 18
Case Studies
November 25, 2015
Page 19
DANAINFRA NASIONAL BERHAD GG ICP/IMTN Programme of up to MYR21.0 Billion
8 Feb 2013 28 Nov 2013
Size MYR300 million MYR100 million
Tenor 10 years 15 years
Profit Rate 4.00% p.a. 4.58% p.a.
8 Feb 2013 28 Nov 2013
Applications 1,424 603
Total Value MYR484.31 mil MYR219.013 mil
Oversubscription rate 1.61 times 2.19 times
TRANSACTION DETAILS TRANSACTION HIGHLIGHTS
Facility Islamic Commercial Papers and Islamic Medium Term Notes Programme (“ICP/IMTN Programme”) and Syndicated Islamic Revolving Credit-i Facility (“RC Facility”) of up to MYR21.0 billion in aggregate nominal value
The MRT Project is one of the projects under Greater Kuala Lumpur - Klang Valley Public Transport Masterplan. First phase, Sungai Buloh – Kajang Line is a proposed passenger rail line running from Sungai Buloh to Kajang covering a distance of 51 kilometers.
DanaInfra Nasional Berhad (“DanaInfra”), wholly owned by Ministry of Finance, Incorporated, was established as a funding vehicle to the MRT Project.
DanaInfra’s main objectives are to ensure certainty of funds and optimum financing cost through market driven pricing that is near sovereign rates.
The ICP/IMTN Programme together with the RC Facility, both credit enhanced through the GOM guarantee, provide a funding platform for DanaInfra to raise funding up to MYR8.0 billion. The RC Facility provided by the Joint Lead Arrangers serves as a back stop mechanism to ensure availability of funds to DanaInfra at all times.
The outstanding nominal value of the Sukuk and the outstanding principal amount of the RC guaranteed by the GOM shall not exceed MYR8.0 billion at any one time.
Repayment of the funds will be via GOM’s contributions on a deferred payment basis via the Operational Expenditure of the annual budget.
Tenure From 7 years to 30 years
Guarantee Irrevocable and unconditional guarantee by the Government of Malaysia (“GOM”)
Programme Tenure
Up to 50 years from the date of first issuance
Utilisation of Proceeds
To fund the construction and development of the Mass Rapid Transit Project (“MRT Project”)
Shariah Principle
Murabahah or other Shariah principles to be determined
AmInvestment Bank’s roles
Joint Lead Arranger / Joint Lead Manager / Joint Book Runner
November 25, 2015
Page 20
DANAINFRA NASIONAL BERHAD GG ICP/IMTN Programme of up to MYR21.0 Billion (cont’d)
8 Feb 2013 28 Nov 2013
Size MYR300 million MYR100 million
Tenor 10 years 15 years
Profit Rate 4.00% p.a. 4.58% p.a.
8 Feb 2013 28 Nov 2013
Applications 1,424 603
Total Value MYR484.31 mil MYR219.013 mil
Oversubscription rate 1.61 times 2.19 times
DISTRIBUTION ANALYSIS PRICING ANALYSIS
Insurance companies were given preference in the allocation of the longer tenures Sukuk (12- and 15-year) to match their portfolio liabilities.
DanaInfra together with AmInvestment Bank and other Joint Lead Arrangers conducted an investor briefing which garnered strong support from the investors.
The investor presentation was followed by a book building exercise for DanaInfra’s maiden Sukuk issuance. During the two-day book building exercise, the Sukuk registered an overwhelming interest from investors with the final bid-to-cover ratio of 4.8 times over the issuance size.
Despite the price guidance of up to 33bps for the Sukuk, DanaInfra and the Joint Lead Managers managed to achieved a competitive pricing level at MGS + 26 bps for the 7- and 10-year Sukuk and MGS + 28 bps for the 12- and 15-year Sukuk, thereby tightening the price for DanaInfra’s inaugural Sukuk.
FLEXIBILITY OF THE ICP/IMTN PROGRAMME RELEVANCE TO MARKET
Islamic Principles The Sukuk was the first public funding exercise for the MRT Project via the Sukuk capital markets which commanded high demand from investors.
Investors’ appetite for shorter term Sukuk has prompted DanaInfra to establish the 7-year Sukuk of MYR300.0 million to attract a wider investors base.
Tax and stamp duty remission for the Sukuk enhanced the Sukuk attractiveness thereby achieving optimum pricing for DanaInfra.
Options to change Islamic principles from Murabahah to Wakalah, Musyarakah, Ijarah, Bai’ Inah or Bai’ Bithaman Ajil to be determined prior to each Sukuk issuance
Upsizing of ICP/IMTN Programme Size
Option to upsize the programme size to accommodate total project cost of MRT Project upon awards of all contracts
Issuance of MYR2.4 billion
Financial Institutions
30% Asset Management
25%
Insurance 24% Government
Agency 13%
Development Financial Institution
8%
November 25, 2015
Page 21
PROJEK LEBUHRAYA USAHASAMA BERHAD AAA-Rated & GG Islamic Medium Term Notes
TRANSACTION DETAILS PIONEER IN PRODUCT INNOVATION
Facility i. Up to MYR23,350 million nominal value AAA-rated Islamic Medium Term Notes (“IMTNs”); and
ii. Up to MYR11,000 million nominal value Government Guaranteed Islamic Medium Term Notes (“GG IMTNs”).
Credit Strengths
The Issuer was incorporated to acquire key highway concessions; PLUS, ELITE, Konsortium Lebuhraya Butterworth-Kulim, LINKEDUA and Penang Bridge.
AAA rating secured as Issuer viewed to be government related and has proven track record of strong performance of its tolled expressways.
Credit Rating i. IMTNs: AAA ii. GG IMTNs: Non-rated
Utilisation of Proceeds
To finance the purchase considerations for the proposed acquisition of all the assets, liabilities, business, undertakings and rights of highway concession companies and other Shariah compliant funding requirements.
Innovative Transaction Volume
Excess IMTNs which are not issued from the IMTN Programme serve as a standby line to cover cashflow shortfall in the initial years.
Repayment profile of up to 27 years matches the Issuer’s projected income from the remaining life of the concessions.
The GG IMTNs which shall be redeemed in the last 2 years of the concessions, act as the tail period to further improve the Issuer’s repayment capabilities.
Effective execution strategy to ensure successful issuance due to deal size.
Tenor i. IMTNs: 5 – 25 years ii. GG IMTNs: 26 – 27 years
Our Role Joint Lead Manager
November 25, 2015
Page 22
PROJEK LEBUHRAYA USAHASAMA BERHAD AAA-Rated & GG Islamic Medium Term Notes (cont’d)
RELEVANCE TO MARKET SUKUK MUSHARAKAH STRUCTURE
Single largest MYR-denominated Sukuk issuance in the history of the global Islamic capital markets.
Evidence of high liquidity in the market and demand for issuances by established companies for long-dated bonds.
Joint Lead Managers for this deal offered certainty of funding to the Issuer via a bought deal arrangement and private placement was arranged to a strategic investor.
Distribution strategies ensured successful placement of IMTNs and GG IMTNs which were oversubscribed by 4x during the subdued month of December.
High credit papers commanded strong support from a wide investor base for secondary trading.
Tax exemption for the GG IMTNs enhanced their attractiveness thereby achieving optimum pricing.
1. The Issuer identifies its business (i.e. the highway concessions) as the underlying asset for the Musharakah transaction.
2. From time to time, investors form a Musharakah Venture amongst themselves, evidenced by subscription of the Sukuk Musharakah. The Issuer declares trust over the underlying assets for the benefit of Sukukholders.
3. The Trustee shall appoint the Issuer as the manager of the Musharakah Venture. Income from the Musharakah Venture shall be distributed periodically or on a one-off basis to the Sukukholders upon the maturity date of the Sukuk Musharakah or the Dissolution Date, whichever is the earlier.
4. The Issuer grants a purchase undertaking in favour of the Trustee (acting on behalf of the Sukukholders) to undertake to purchase the Sukukholders’ interest in the Musharakah Venture and pay the Exercise Price on either the maturity date of the Sukuk Musharakah or on the Dissolution Date, whichever is the earlier.
5. Government of Malaysia guarantees the GG IMTN.
1.DISTRIBUTION ANALYSIS
Financial Institutions,
20%
Fund Management
Co., 11%
Insurance Co., 18%
Quasi-Government
Co., 52%
Aggregate Issuance of
MYR30.6 billion
ISSUER (Manager)
TRUSTEE (acting for
Sukukholders)
SUKUKHOLDERS
MUSHARAKAH VENTURE
(Trust Assets)
1 Identif ies business 2 Invest in
venture
2Musharakah
Capital / Proceeds
2 Issues Sukuk
2 Sukuk Proceeds
3 Appoint as Manager
3 One-Off Distribution / Periodic Distribution
4 Purchase Undertaking
GOM
5 Government guarantee
November 25, 2015
Page 23
Why AmInvestment Bank?
November 25, 2015
Page 24 Why AmInvesment Bank? AmInvestment Bank provides a wide range of innovative and integrated financing solutions via the Malaysian debt / Islamic capital markets, serving a clientele across a diverse range of industries. We have a long-standing track record in structuring award-winning and significant market transactions that contribute to the development of the Malaysian debt capital markets while offering tailored financing solutions to meet each client’s specific requirements.
Our Competitive Edge
Established Debt /Islamic
Markets Team
Strong Debt Markets team comprising professionals experienced in finance, accounting, tax, actuarial, legal, credit rating, risk management, engineering and regulatory.
Experienced and dedicated Islamic Markets team backed by extensive record in Islamic finance.
Specialised Syndicated Loan, Structured Finance, Capital & Project Advisory teams.
Widespread Distribution
Network
Numerous on-the-ground sales and trading professionals in Malaysia, servicing clients across a range of Islamic capital market products.
Ability to leverage on our major shareholder, Australia and New Zealand Banking Group (“ANZ”)’s international connectivity and
strong distribution channels for regional market.
Committed to deep, long standing relationship
Market Dominance
Top 3 positions on Bloomberg Underwriter Rankings for MYR-denominated PDS for 12 years consecutively and Top 3 for Malaysian Loan Syndication.
Command 15-20% of Bloomberg Underwriter Rankings for Malaysian Bonds and MYR Islamic Bonds for the past 12 years.
Landmark Transactions
Our landmark transactions completed are:
Financing for Penang’s Second Bridge Project – Jambatan Kedua
Repeat Mandate by the Country’s Infrastructure Conduit – Prasarana Malaysia
Sole Casino Operator in Malaysia – GENM Capital (Genting)
Largest State Bond Issuance – Sabah State Government Largest Danajamin-Guaranteed Facility in 2014 –
Berjaya Land Tan Chong Motor’s Debut MTN Issuance in Malaysia
November 25, 2015
Page 25 Market Leadership and Peer Comparison Our structuring and syndication specialists are committed to delivering market-leading and customised Islamic financing
solutions via the debt and equity markets to our full spectrum of clients, ranging from corporate and institutional through to government-linked entities.
The team leverages on its debt origination and structuring expertise built from comprehensive market and product knowledge
in providing clients with integrated financing solutions. Combined with our execution capabilities, Islamic product innovation and extensive distribution network, we are able to execute the most complex transactions under the most challenging circumstances.
29%
Div. Financial Services
29%
Real Estate
21%
Auto Manufacturers
#2
35%
Electric
50%
Gov-Linked Entities
25%
Lodging
#1
Our Breadth of Coverage – Across Industries
Notes: 1. Source: Bloomberg (15 November 2014 – 27 October 2015); 2. Total PDS Issuances for the period under review amounts to MYR59 billion
with 382 issuances;
Fin. Guarantee Issues (by Size) #1 (61%) None #2 (3%) None
Conventional Issues (by Count) #1 (14%) #2 (13%) #2 (13%) #3 (12%)
Conventional Issues (by Size) #1 (30%) #2 (28%) #3 (12%) #4 (9%)
Number of Sole Books (by Size) #1 (28%) #2 (26%) #3 (21%) #4 (9%)
Quasi-Gov (by Size) #2 (24%) #1 (26%) #3 (19%) #4 (18%)
AA Bonds/Sukuk (by Size) #2 (22%) #1 (26%) #3 (18%) #4 (14%)
Source: Bloomberg (15 November 2014 – 27 October 2015)
Ranking Amongst Peers – Across Product Type
November 25, 2015
Page 26 Track Record With Government-Linked Entities
JAMBATAN KEDUA SDN BHD
MYR4.6 Billion Government-Guaranteed Sukuk Murabahah Programme (2015) Our Role: Joint Lead Arranger/Joint Lead Manager/Joint Bookrunner
PROJEK LEBUHRAYA USAHASAMA BERHAD
MYR23.35 Billion AAA-rated Sukuk Programme (2012) Our Role: Joint Lead Manager
MYR11.0 Billion Government Guaranteed Sukuk Programme (2012) Our Role: Joint Lead Manager
DANAINFRA NASIONAL BERHAD
MYR21.0 Billion Government-Guaranteed Sukuk Programme (2012) Our Role: Joint Lead Arranger/Joint Lead Manager/Joint Bookrunner First Exchange Traded Bonds and Sukuk in Malaysia
MYR8.0 Billion Syndicated Islamic Term Financing Facility (2012) Our Role: Mandated Lead Arranger
Government-Linked Entities
KLCC REAL ESTATE INVESTMENT TRUST
AAA-Rated MYR3.0 Billion ICP/IMTN Programme (2015) Our Role: Joint Principal Adviser/Joint Lead Arranger/Joint Lead Manager
Malaysia’s first AAA-rated REIT
SABAH STATE GOVERNMENT
AAA-Rated Bonds of up to MYR1.0 Billion in nominal value (2014) Our Role: Joint Lead Arranger/Joint Lead Manager
SARAWAK ENERGY BERHAD
MYR1.5 Billion Sukuk Musharakah Programme (2013) Our Role: Joint Lead Arranger/Joint Lead Manager
PUTRAJAYA HOLDINGS
MYR3.0 Billion Sukuk Musharakah Programme (2012) Our Role: Joint Principal Adviser/Joint Lead Arranger/Joint Lead Manager
November 25, 2015
Page 27 Our Awards and Accolades
2014 2015
The Banker Deals of the Year 2014 Islamic Finance Deal of the Year in Asia Pacific Cagamas Berhad MYR3.8 Billion Issue
RAM Deals of the Year 2014 (BluePrint Award) Market Maker of the Year ORIX Leasing Malaysia
Islamic Finance News Awards 2014 Malaysia Deal of the Year 2014 Midciti Sukuk for KLCC REIT
Islamic Finance News Awards 2014 Real Estate Deal of the Year 2014 Midciti Sukuk for KLCC REIT
Islamic Finance News Awards 2014 Social Impact Deal of the Year 2014 (Honourable Mention) DanaInfra Nasional Berhad
Islamic Finance News Awards 2014 Regulatory Capital Deal of the Year 2014 (Honourable Mention) AmBank Islamic Basel III Sukuk
Alpha SEA Deal & Solution Awards 2014 Most Innovative Deal of the Year in SEA AmBank Islamic Basel III Sukuk
Alpha SEA Deal & Solution Awards 2014 Best Islamic REIT Deal of the Year in SEA Midciti Sukuk for KLCC REIT
Bloomberg Underwriter Rankings Malaysian Bonds – No. 3 (14.9%) MYR Sukuk – No. 3 (14.2%) Loan Syndication – No. 5 (6.3%)
MARC League Table 2014 Overall PDS – No. 2 by issue count Conventional – No. 1 by issue count
RAM Lead Manager Award Sukuk – No. 2 by Prog. Value Sukuk – No. 3 by Issue Count
RAM Deals of the Year 2014 (BluePrint Award) Market Pioneer 2014 AmBank Islamic Basel III Sukuk
RAM Deals of the Year 2014 (BluePrint Award) Market Pioneer 2014 Cagamas RMB Bond
RAM Deals of the Year 2014 (BluePrint Award) New Real Estate Benchmark Deal Midciti Sukuk for KLCC REIT
The Asset Triple A Islamic Finance Awards 2015 Best Corporate Sukuk Cagamas Berhad
The Asset Triple A Islamic Finance Awards 2015 Best Bank Capital Sukuk AmIslamic Bank Berhad
The Asset Triple A Islamic Finance Awards 2015 Best REIT Sukuk Midciti Sukuk for KLCC REIT
The Asset Project Finance Awards 2015 Project Finance Bank of the Year Malaysia
The Asset Project Finance Awards 2015 Best Project Finance Deal of the Year & Best Oil & Gas Deal of the Year SapuraKencana TMC
The Asset Project Finance Awards 2015 Best Transport Deal of the Year DanaInfra Nasional Berhad
November 25, 2015
Page 28 AmInvestment Bank’s Capital Markets Group This Presentation has been prepared by AmInvestment Bank for the exclusive use of the company in evaluating the appropriate corporate structure, proposed funding tool and determining the optimum financial outcome.
This Presentation is not intended for general circulation or publication nor is it to be reproduced in part or in whole or referred to or disclosed or communicated to any other party or used in any way for any purpose other than those outlined above without the prior consent of AmInvestment Bank. The information contained herein is confidential information regarding the proposed structure and is intended for use only by the Company. By accepting this information the Company agrees that it will cause its respective directors, partners, officers, employees and representatives to agree, to use the information only to evaluate its potential interest in the structure described herein and for no other purpose and will not divulge any such information to any other party. Any reproduction of this information, in whole or in part, is prohibited.
AmInvestment Bank makes no representations as to the accuracy or completeness of the information provided herein. The statements contained in this Presentation are given in good faith and in the belief that they are not false or misleading. AmInvestment Bank expressly disclaims any and all liabilities to the Company or any other parties for representations, expressed or implied, contained in or omissions from the documents or any other written or oral communications transmitted as a result of the circulation, publication, reproduction or use of this Proposal contrary to the provisions contained herein. At this juncture, we have placed reliance on publicly-available information, wherever possible, and on information provided to us by the Company.
The information contained herein has been prepared solely for informational purposes.
Zainul Hashim | Senior VP
+603 2036 1638
Debt Markets
Salina Burhan | Senior VP
+603 2036 1644
Seohan Soo | Executive VP
+603 2036 1631
Capital Markets Group Wholesale Banking Coverage
Chean Pei Chen | Senior VP
+603 2036 1559
Islamic Capital Markets
Dato’ Mohd Effendi | Senior VP
+603 2072 7748
Anuar Omar | Senior VP
+603 2036 1715
Corporate Finance
Financial Institutions Group
Hanif Mohd Yusof | Senior VP
+603 2031 9080
Government-Linked Companies
Joanna Yu | Executive VP
+603 2036 1598
Infrastructure and Construction Mohd Hedzir Hanafi | Senior VP
+603 2036 1531
Thank You
Question
