Naim 6 Report post Posted April 28, 2008 Malaysia AirAsia's 500 mln rgt sukuk issue approved Mon Apr 28, 2008 7:38am EDT KUALA LUMPUR, April 28 (Reuters) - Malaysian budget carrier AirAsia Bhd's (AIRA.KL: Quote, Profile, Research) proposed 500 million ringgit ($158.5 million) sukuk (Islamic bond) has been approved by the market regulator, the airline said on Monday. The airline said proceeds from the sukuk would be used to part finance its capital expenditure. Bank Islam Malaysia (BIMB.KL: Quote, Profile, Research) and Kuwait Finance House (Malaysia) (KFIN.KW: Quote, Profile, Research) are the joint principal advisers, lead arrangers and lead managers for the issue. Kuwait Finance House is also the guarantor for the sukuk programme, it said. Malaysian Rating Corp has assigned a long-term rating of AA+(bg) for the issue. (Reporting by Jalil Hamid; Editing by David Cowell) http://www.reuters.com/article/rbssIndustr...0080428?sp=true Share this post Link to post Share on other sites
Imran K. 0 Report post Posted April 28, 2008 AA rating...wow..thats FANTASTIC Share this post Link to post Share on other sites
Mushrif A 3 Report post Posted April 29, 2008 (edited) AA rating...wow..thats FANTASTIC FYI, based on the article, the AA rating by MARC is largely derived on the strength of KFH as the guarantor, as opposed to the credit-worthiness of AK. i.e. KFH will make good any claims by bondholders should AK fails to do so, and KFH is a financially stronger entity than AK. KFH is also well-positioned to understand the intricacies of owning/managing airliners as assets. KFH has a subsidiary that does aircraft leasing, ALAFCO, and one or two of MH's 772 are owned by ALAFCO. Edited April 29, 2008 by Mushrif A Share this post Link to post Share on other sites
