Thursday, Oct 23, 2003
MARC has reaffirmed Putrajaya Holdings Sdn Bhd’s (PJH) long term and short term issuer rating of AAA and MARC-1, respectively and its Islamic corporate debt ratings of AAAID/MARC-1ID in respect of its Bai’ Bithaman Ajil Bonds Issuance Facilities for Parcels A, B, C, D & Public Facilities Precinct 10 and its Murabahah Commercial Papers/Medium Term Notes Programme for Parcel E. The reaffirmation of the ratings reflects the strength of the issue structures which are secured by specific assignments of the sub-lease rental receivables in respect of government buildings; the strategic importance of PJH in the development of Putrajaya as well as its solid capitalization and financial flexibility supported by strong shareholders.
PJH is the concessionaire and developer of Putrajaya. The construction of Government buildings on a privatized basis by PJH is covered under a Concession Agreement entered into with the Government. Upon completion of the buildings, the Government will grant PJH a 25-year lease for the land. PJH will simultaneously sub-lease the land and buildings back to the Government for a matching period of 25 years in return for specified rental streams. Maintenance of the buildings will be undertaken and borne entirely by the Government.
The Bai’ Bithaman Ajil bonds facilities are backed by sub-lease agreements in respect of completed Government buildings in Parcels A, B, C & D and Public Facilities Precinct 10. The rating of AAAID reflects the credit of the Government; the counterparty to the said agreements. The sub-lease rental income streams are more than sufficient to cover the payment obligations under the Islamic debts: affording a high degree of stability and predictability to the issue specific cash flows. The progressive reduction of the debts in a serial manner over the tenure of the facilities significantly mitigates refinancing risk.
The Murabahah Commercial Papers/Medium Term Notes (CP/MTN) carry the issuer rating of PJH (MARC-1/AAA). Upon completion of the construction works in Parcel E (by February 2004), sub-lease agreements with the Government shall be assigned for the benefit of the investors. Liquidity risk is mitigated as the CPs shall be rolled-over at the maturity dates.
PJH’s exceptionally strong financial flexibility is drawn from the strength of its shareholders, namely, PETRONAS, the national oil and gas company; and Khazanah Nasional Bhd, the investment holding company of the Government.
PJH is the concessionaire and developer of Putrajaya. The construction of Government buildings on a privatized basis by PJH is covered under a Concession Agreement entered into with the Government. Upon completion of the buildings, the Government will grant PJH a 25-year lease for the land. PJH will simultaneously sub-lease the land and buildings back to the Government for a matching period of 25 years in return for specified rental streams. Maintenance of the buildings will be undertaken and borne entirely by the Government.
The Bai’ Bithaman Ajil bonds facilities are backed by sub-lease agreements in respect of completed Government buildings in Parcels A, B, C & D and Public Facilities Precinct 10. The rating of AAAID reflects the credit of the Government; the counterparty to the said agreements. The sub-lease rental income streams are more than sufficient to cover the payment obligations under the Islamic debts: affording a high degree of stability and predictability to the issue specific cash flows. The progressive reduction of the debts in a serial manner over the tenure of the facilities significantly mitigates refinancing risk.
The Murabahah Commercial Papers/Medium Term Notes (CP/MTN) carry the issuer rating of PJH (MARC-1/AAA). Upon completion of the construction works in Parcel E (by February 2004), sub-lease agreements with the Government shall be assigned for the benefit of the investors. Liquidity risk is mitigated as the CPs shall be rolled-over at the maturity dates.
PJH’s exceptionally strong financial flexibility is drawn from the strength of its shareholders, namely, PETRONAS, the national oil and gas company; and Khazanah Nasional Bhd, the investment holding company of the Government.