Monday, Nov 28, 2005
MARC has assigned an Islamic debt long term rating of AAAID to Putrajaya Holdings Sdn Bhd’s (“PJH”) proposed RM2.2 billion Islamic Medium-Term Notes (“IMTN”) Programme. The rating reflects PJH’s solid capitalization underlined by the strong set of shareholders, exceptionally strong financial flexibility and the strategic importance of PJH in the development of Putrajaya as the nation’s administrative capital. Furthermore, PJH will assign sub-lease rental income streams in respect of specific Government buildings commencing FY2011 to the IMTN holders.
Upon the expiration of the present assignments over the sub-lease rental payments in respect of completed Government buildings under Parcels A, B, C, D and Public Facilities Precinct 10 in 2010/2013, PJH will then undertake to assign the said sub-lease rental payments to the IMTN holders. The sub-lease rental income streams will be captured in a Security Account where it will be utilised wholly for the payments of the IMTNs’ primary and secondary bonds. The progressive reduction of the debts in a serial manner over the tenure of the Facilities significantly mitigates refinancing risk.
PJH’s revenue reported significant improvement in FY2005 to approximately RM1,319 million attributed mainly to the increased progress billings on the Government Quarters and steady rental contributions from the sub-lease of Government buildings. Following the drawdown of the proposed MTN, PJH’s proforma debt equity level as at 31 July 2005 is expected to be 3.33x; still below the cap of 4.0x imposed under the issue structure. PJH’s exceptionally strong financial flexibility is drawn from the strength of its shareholders (PETRONAS and Khazanah) and an unutilised revolving credit line of RM686 million as at 31 July 2005.
Upon the expiration of the present assignments over the sub-lease rental payments in respect of completed Government buildings under Parcels A, B, C, D and Public Facilities Precinct 10 in 2010/2013, PJH will then undertake to assign the said sub-lease rental payments to the IMTN holders. The sub-lease rental income streams will be captured in a Security Account where it will be utilised wholly for the payments of the IMTNs’ primary and secondary bonds. The progressive reduction of the debts in a serial manner over the tenure of the Facilities significantly mitigates refinancing risk.
PJH’s revenue reported significant improvement in FY2005 to approximately RM1,319 million attributed mainly to the increased progress billings on the Government Quarters and steady rental contributions from the sub-lease of Government buildings. Following the drawdown of the proposed MTN, PJH’s proforma debt equity level as at 31 July 2005 is expected to be 3.33x; still below the cap of 4.0x imposed under the issue structure. PJH’s exceptionally strong financial flexibility is drawn from the strength of its shareholders (PETRONAS and Khazanah) and an unutilised revolving credit line of RM686 million as at 31 July 2005.