14  August 2012
Kuala Lumpur Kepong Berhad Successfully Prices RM1.0 Billion 10-Year Islamic Medium Term Notes (“IMTN”)

Kuala Lumpur Kepong Berhad (“KLK”) last week successfully priced its RM1.0 billion in nominal value 10-year IMTN to be issued under its Multi-Currency IMTN Programme. The transaction was initially announced at RM750.0 million but was later upsized to RM1.0 billion due to the overwhelming investor demand.

CIMB Investment Bank Berhad (“CIMB”) and Maybank Investment Bank Berhad (“Maybank IB”) acted as the Joint Principal Advisers, Joint Lead Arrangers, Joint Lead Managers and Joint Bookrunners for the Multi-Currency IMTN Programme.

The IMTN, which are based on the Islamic principle of Ijarah, were successfully priced at a profit (coupon) rate of 4.00% per annum which is 20 basis points inside the top end of the initial price guidance of 4.10% to 4.20%. With an order book which exceeded RM7.0 billion at one point, KLK was able to swiftly price its transaction within the same day of launch.

“The success of the book building exercise demonstrates KLK's financial strength and leadership position as a premier global palm-oil player”, said Tengku Dato’ Zafrul, Chief Executive Officer of Maybank IB.

Dato’ Charon Wardini Mokhzani, Chief Executive Officer of CIMB further added “KLK’s AA1-rated RM1.0 billion book building has achieved a new benchmark for high-grade corporate Sukuk issuances in Malaysia”.

“KLK is pleased with the investor response to the book building exercise. I would like to thank CIMB and Maybank IB for their excellent work and also thank the Co-Managers – Hong Leong Islamic Bank Berhad, OCBC Bank (Malaysia) Berhad, OSK Investment Bank Berhad and RHB Investment Bank Berhad for supporting this transaction”, said Tan Sri Dato’ Lee Oi Hian, Chief Executive Officer of KLK.

The IMTN were allocated to a well-diversified investor base comprising financial institutions, asset management companies, insurance companies, corporations and government agencies.

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