MARC has assigned the ratings of AAA and AA+ to IJN Capital Sdn Bhd’s RM100 million Sukuk Musyarakah with maturities of seven (7) years or less from the date of first issue and RM109 million Sukuk Musyakarah with maturities of more than seven (7) years from the date of first issue, respectively. The ratings stem from Institut Jantung Negara Sdn Bhd’s (IJN) position as one of the leading cardiac centres in Malaysia and the Asia-Pacific region. Meanwhile, the AAA is backed by receivables from the Government; a specified percentage of which will be swept to a Specific Revenue Account. Proceeds from the issuance will be utilised for the refurbishment and improvement works on IJN’s existing hospital building and construction of a new hospital block adjacent to the existing building, including purchase of medical and non-medical equipment to be commissioned.

Formed in 1992, IJN is dedicated to serving the needs of heart patients by providing cardiology, paediatric cardiology and cardiothoracic surgery services for both adult and paediatric cases. Over the past 12 years in operation, IJN has seen a total of 894,748 outpatient attendances and 105,133 inpatients. During the same period, IJN performed over 28,000 surgeries – open heart, closed heart and thoracic surgeries and conducted over 60,000 interventional cardiology procedures.

Reported earnings and profitability in 2004 were the highest ever recorded by IJN, reflecting the growth in patients’ attendances, increased productivity as well as better cost efficiency and a revised fee structure put in place based on year 1998 costs. All rates are determined by the Government.

IJN is currently debt-free. Based on the current shareholders’ funds of RM200 million, the RM209 million Sukuk issuance will result in a pro-forma leverage of 1x.