By Chester Tay
A unit of Petronas Gas Bhd. is raising up to 3.0 billion ringgit ($726.3 million) via Islamic bonds to repay debts and redeem preference shares.
Pengerang LNG (Two) Sdn Bhd., which is 65%-owned by the gas company, will issue 30-year bonds under a Sukuk Murabahah program, Petronas Gas said in a filing Thursday.
The bonds have been assigned an indicative rating of AAA by Malaysian Rating Corp. Bhd., the company said.
Pengerang LNG will also use the proceeds to pay jetty usage fees at Pengerang Terminals in Malaysia's Johor state and as working capital.
CIMB Investment Bank Bhd. is the sole principal adviser, lead arranger and lead manager for the program, Petronas Gas said. CIMB Islamic Bank Bhd. is the Shariah adviser.
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