KUALA LUMPUR (Sept 29): Amanat Lebuhraya Rakyat Bhd (ALR), which turned to the sukuk market to finance its multi-billion acquisition of four major highways in the Klang Valley, has successfully priced a RM5.5 billion nominal value AAA-rated sukuk.

“The investor appetite for ALR’s sustainability sukuk murabahah was healthy as represented by an oversubscription of the order book, despite the heightened market volatility,” said the sukuk’s lead arrangers and lead managers in a statement.

“ALR has completed its substantive conditions precedent and is working towards practical completion of the transaction with the government of Malaysia with the issuance of the sustainability sukuk murabahah, and final completion is expected to be achieved by early to mid-October 2022,” they added.

ALR was established for the purpose of acquiring four highway toll concessionaires, namely Sistem Penyuraian Trafik KL Barat Sdn Bhd (Sprint), Syarikat Mengurus Air Banjir & Terowong Sdn Bhd (Smart), Lingkaran Trans Kota Holdings Sdn Bhd (Litrak) and KESAS Sdn Bhd, under a toll restructuring proposal submitted to the Ministry of Works.

On April 4, ALR made a conditional offer to acquire the concessionaires, based on enterprise values of RM1.24 billion for KESAS, RM2.12 billion for Litrak, RM1.81 billion for Sprint, and RM313 million for Smart. This brings the total enterprise value to RM5.48 billion.

They are to be acquired from Gamuda Bhd, Lingkaran Trans Kota Holdings Bhd (Litrak), and Kumpulan Perangsang Selangor Bhd (KPS).

AmInvestment Bank Bhd, CIMB Investment Bank Bhd and Hong Leong Investment Bank Bhd are the joint principal advisers, joint lead arrangers and joint lead managers for ALR’s sustainability sukuk murabahah programme.

The lead managers also include Maybank Investment Bank Bhd, RHB Investment Bank Bhd and United Overseas Bank (Malaysia) Bhd.