MEX II Defers MYR 1.3 Billion Sukuk Principal, Profit Payments; MARC Maintains CIS/C Rating

Malaysian highway operator MEX II has deferred its MYR 1.3 billion Sukuk Murabahah Programme’s (Sukuk) principal repayment and profit payments due at the end of April 2021 for up to four months, following approval from Sukukholders, according to a recent statement released by CIMB Investment Bank. In addition, Malaysian Rating Corporation (MARC) has maintained its C-IS/C ratings on MEX II’s MYR 1.3 billion Sukuk and MYR 150 million Junior Bonds, as MEX II obtained permission from Sukukholders to defer the Sukuk payment.

Why it Matters?

MEX II was set up to issue bonds to raise money to finance the 16.8 km Lebuhraya Putrajaya-Kuala Lumpur International Airport (KLIA) highway project (MEX Extension), which has currently been put on hold. Although the deferm...