MARC Ratings has affirmed its AAAIS rating on Aman Sukuk Berhad’s (Aman) Islamic Medium-Term Notes (IMTN) Programme of up to RM10.0 billion with a stable outlook. The rating affirmation reflects the credit strength of the Malaysian government as the sole obligor of the annual sublease rental payments, and the quantum of which is deemed sufficient to meet the principal repayments and profit payments under the IMTN programme on a timely basis.
Aman is a wholly-owned funding vehicle of PBLT Sdn Bhd, the developer of 74 construction projects for Polis Diraja Malaysia comprising quarters and facilities. The projects were undertaken under a build, lease and transfer (BLT) model. Upon completion of each project, PBLT had entered into irrevocable lease and sublease agreements with the Malaysian government.
The sublease rental payments were structured to meet the repayment schedule of each series for the IMTNs issued. As at end-March 2022, combined cash balance in the security accounts stood at RM2.1 billion, which is more than sufficient to meet upcoming IMTN profit and principal repayments of RM719.7 million in 2022 and RM675 million through 2023. The outstanding IMTN under the rated programme stood at RM2.8 billion as at June 9, 2022.