By Vivien Joannes
KOTA KINABALU: SMJ Sdn Bhd (SMJSB), Sabah state’s oil and gas company, successfully launched its inaugural RM900 million Sukuk Wakalah pursuant to its RM10 billion AAA-Rated Multi-Currency Islamic Medium-Term Notes earlier this week.
This inaugural issuance was oversubscribed by 3.9 times, with a book of RM3.5 billion, from a diverse group of investors in Malaysia, and the overwhelming demand reflects their confidence in SMJSB and the Sabah State Government’s strong support for the company.
The Sukuk Wakalah was supported by AmInvestment Bank Berhad (AIBB) as the sole Principal Adviser and Lead Arranger, and as a joint Lead Manager together with Commerce International Merchant Bankers Berhad (CIMB) and Bank Pembangunan Malaysia Berhad (BPMB).
Sabah Chief Minister Datuk Seri Hajiji Noor witnessed the signing ceremony between Chief Executive Officer Dr Dionysia Kibat, representing SMJSB, and AIBB Head of Debts Market Yeoh Teik Leng, here, today, to mark the inaugural issuance.
Also present were Finance Minister Datuk Seri Masidi Manjun, who is also SMJSB Chairman, Sabah State Secretary Datuk Seri Panglima Safar Untong, Technical Advisor to the Sabah Government-cum-SMJSB Special Advisor Datuk Seri Panglima Lim Haw Kuang, AIBB Chief Executive Officer Tracy Chen and Ambank Business Banking Managing Director Christopher Yap, to mention some.
Describing the programme as a significant milestone for SMJSB, Masidi in his speech highlighted that with a seed capital of RM50 million from the State Government when the company was incepted in 2021, it now valued at RM2.3 billion.
He also said that there are a lot more untapped oil and gas resources in Sabah, and that the State Government, with SMJSB’s help, will achieve greater revenue sharing, greater say and greater participation in the oil and gas development in the state.
Dionysia said the proposed Sukuk Wakalah, which was kicked off in April this year, was assigned the AAA-Rating by RAM Rating Services Berhad, a leading and largest credit rating agency in Malaysia and South-East Asia.
Following this successful maiden issuance, she looks forward to announcing many more deals in the near future.
Meanwhile, in applauding SMJSB for the successful maiden issuance, Tracy said: “This maiden issuance marks a testament of investors’ strong confidence in SMJSB’s financial performance and business outlook. Although SMJSB is investing in the hydro-carbon industry, SMJSB continues to partner reputable operators with established and proven environmental, social and governance practices and policies with set targets to reduce greenhouse gas emissions over time.
To date, SMJSB already has a 50 per cent stake in the Samarang PSC and sold its first sale of crude oil to Shell International Eastern Trading Company in June this year, and a 25 per cent share in the Sabah Ammonia Urea petrochemical plant.
Moving forward, SMJSB is in the midst of acquiring Sabah International Petroleum Sdn Bhd, which holds a 10 per cent ownership stake in Petronas LNG9 Sdn Bhd that operates a LNG plant within the Bintulu LNG complex.
Other acquisitions of profitable producing oil and gas assets will also follow.
