MARC Ratings has affirmed its AAA_IS rating on Aman Sukuk Berhad’s (Aman) Islamic Medium-Term Notes (IMTN) Programme of up to RM10.0 billion. The total outstanding under the programme stood at RM1.47 billion as at end-May 2024. Aman has informed that it will undertake an early full redemption of the total outstanding sukuk by end-July 2024.

 

The rating affirmation reflects the credit strength of the Malaysian government as the sole obligor of the annual sublease rental payments, the quantum of which is deemed sufficient to meet the principal repayments and profit payments under the IMTN programme on a timely basis. 

Aman is a wholly-owned funding vehicle of PBLT Sdn Bhd, the developer of 74 construction projects for Polis DiRaja Malaysia (PDRM) comprising quarters and facilities. The projects were undertaken under a build, lease and transfer (BLT) model. Upon completion of each project, PBLT had entered into irrevocable lease and sublease agreements with the Malaysian government. 

The IMTNs were issued in seven independent series, proceeds from which were used to acquire the rights and entitlements to sublease rental receivables of the said projects from PBLT. The sublease rental payments were structured to meet the repayment schedule of each series of the IMTNs issued. 

As at end-May 2024, the combined cash balance in the security accounts stood at RM1.6 billion. The combined cash balance in the security accounts is sufficient to meet full redemption of the outstanding sukuk under the programme. Following this and the cancellation of the programme, MARC Ratings will cease to provide analytical coverage on Aman.