MARC has assigned a final rating of AAAIS with a stable outlook to Putrajaya Bina’s proposed Islamic Medium-Term Notes (Sukuk Wakalah) Programme of up to RM1.58bn. MARC had earlier assigned a preliminary rating of AAAIS/stable to the proposed issuance in February 2016.
PBSB, a wholly owned subsidiary of Putrajaya Holdings, is undertaking the development of nine blocks of government office buildings and one block of shared facilities under a concession agreement with the Malaysian government. The concession has since commenced in May 2017. Proceeds from the issuance will largely fund the RM1.9bn development which entails a three-and-a-half-year construction phase and a 25-year asset maintenance phase. Upon completion of construction and one month after receipt of the Certificate of Acceptance, PBSB is entitled to receive monthly concession payments in the form of availability charges of RM215.6m per annum and asset management service charges of RM69.2m per annum for tenancy by various ministries and government agencies.