MARC Ratings has affirmed its AAAIS rating on Putrajaya Bina Sdn Bhd’s (PBSB) RM1.58 billion Sukuk Wakalah Programme. The rating outlook is stable.
The rating affirmation is premised on the quantum of the periodic payment streams from the Malaysian government (AAA/Stable) in the form of availability charges (AC) that is deemed sufficient to meet the financial obligations under the Sukuk Wakalah Programme. PBSB’s status as a wholly-owned subsidiary of government-related entity Putrajaya Holdings Sdn Bhd (PJH, rated AAA/Stable), the master developer of the federal government’s administrative capital in Putrajaya, underpins the rating.
PBSB completed the construction of nine blocks of government office buildings and one block of shared facilities in Parcel F, Precinct 1, in Putrajaya under a government concession agreement in April 2019. It receives AC payments of RM215.6 million p.a. under the 25-year asset management phase of the concession agreement. PBSB receives maintenance charges (MC) of RM69.2 million p.a. subject to meeting specific key performance indicators. As at date, PBSB has received MC payments in full. The financial service cover ratio would stand at a healthy 2.47x as at end-2023 based on the projected cash flow against a covenant of 1.50x.