Malaysia’s KPJ unit redeems outstanding sukuk, cancels program

By Marisa Wong

Madison, Wis., Dec. 16 – Malaysia’s KPJ Healthcare Bhd. said its wholly owned subsidiary, Point Zone (M) Sdn. Bhd., redeemed on Dec. 10 the entire outstanding amount under its Islamic commercial paper and Islamic medium-term note program.

Point Zone cancelled the up to RM 500 million paper/MTN program on Tuesday.

The company said it has no intention of reissuing securities under the program.

Last month, KPJ announced that Point Zone is setting up new Islamic medium-term note and Islamic commercial paper programs.

The new sukuk programs have a combined limit of RM 1.5 billion, with a sublimit of RM 500 million for the paper program. The MTN program has a tenor of 10 years, and the paper program has a tenor of seven years.

Affin Hwang Investment Bank Bhd. and Maybank Investment Bank Bhd. are the joint principal advisers and joint lead arrangers for the sukuk programs.

Proceeds of the new sukuk programs will be used to refinance the prior RM 500 million sukuk program or the company’s up to RM 450 million bridge loan facility and to finance the expansion and working capital requirements of KPJ’s health care businesses.

KPJ is a Kuala Lumpur-based private health care provider with hospitals in Malaysia, Indonesia, Bangladesh and Saudi Arabia.

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