The Edge: DanaInfra to issue RM2.5 billion Islamic bonds under RM71b scheme

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DanaInfra to issue RM2.5 billion Islamic bonds under RM71b scheme

KUALA LUMPUR (April 6): Malaysia's infrastructure financing entity DanaInfra Nasional Bhd will issue a combined RM2.5 billion worth of Islamic medium term notes (IMTN) under its RM71 billion scheme across five tranches on Thursday (April 7), according to updates on the Bond and Sukuk Information Exchange's (BIX) website.

The IMTN, which have tenures of seven to 30.02 years, will pay annual profit rates of between 3.99% and 4.80%.

The proposed five tranches of IMTN include a seven-year RM415 million IMTN (maturing on April 6, 2029) which offers an annual profit rate of 3.99%, a 10.01-year RM300 million IMTN (maturing on April 7, 2032) which pays an annual profit rate of 4.07%.

It also includes a 15.01-year RM870 million scheme (maturing on April 7, 2037) which offers an annual profit rate of 4.53%, a 20.01-year RM355 million scheme (maturing on April 7, 2042) which pays an annual profit rate of 4.68%, and a 30.02-year RM560 million scheme (maturing on April 5, 2052) which offers an annual profit rate of 4.8%.

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These Islamic bonds are government-guaranteed, according to BIX.

According to DanaInfra's website, the company established an Islamic Commercial Papers (ICP) and IMTN programme of up to RM8 billion in 2012 to finance the preliminary requirements of MRT Kajang Line. The ICP/IMTN programme was upsized to RM21 billion in 2014 in line with Kajang Line funding requirement and subsequently further upsized to RM46 billion in 2015 to cater and consolidate the funding requirements of MRT Kajang Line and MRT Putrajaya Line, upon the government's approval to proceed with the MRT Putrajaya Line project.

In 2018, the ICP/IMTN programme was upsized from RM46 billion to RM61 billion and was further upsized in 2020 to RM71 billion to meet the funding requirements of MRT Putrajaya Line.